Priciest cities to rent
Many factors can make a housing rental market difficult to negotiate, such as tight supply and fierce competition for the most desirable properties. But chief among potentially problematic rental factors is the cost. To get an indication of how stretched renters are in each market, the data team at John Burns Real Estate Consulting looked at the rent-to-income ratios in 40 major U.S. cities.
The resulting list is particularly heavy with representatives from one state. And while it might not be the argument-ender on where it's the most difficult to find a rental, it can speak to the costliness of these 10 marke
This list has the underpinnings of why they are the strongest rental markets in the country,” says Peter Dennehy, Burns Consulting vice president. It’s a combination of reasonably high household income and job growth (meaning cities less-affected by recession or ones growing again), and barriers to home ownership (i.e. cost), as well as a long-term trend toward density.
“We’re expecting continued rent growth, and as landlords push rents higher, we expect to see some movement of current renters into homeownership,” says Wayne Yamano, director of research at Burns. “Move-outs to own are still at historically low levels, but some REITs (real estate investment trusts) are starting to see an uptick.”
Read on to see the countdown to the city with the highest rent-to-income ratio. The figures are for metropolitan areas.
5. Detroit
Rent to Income Ratio: 28%
Population: 1,806,100
Median Household Income: $36,127
Rent to Income Ratio: 28%
Population: 1,806,100
Median Household Income: $36,127
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| No. 5: Detroit. Photo: Ed Schipul / Flickr |
4. Miami
Rent to Income Ratio: 29%
Population: 2,514,200
Median Household Income: $45,219
Rent to Income Ratio: 29%
Population: 2,514,200
Median Household Income: $45,219
 |
| No. 4: Miami. Photo: Maremagnum / Getty Images |
3. San Francisco
Rent to Income Ratio: 33%
Population: 1,789,900
Median Household Income: $79,076
Rent to Income Ratio: 33%
Population: 1,789,900
Median Household Income: $79,076
 |
| No. 3: San Francisco. Photo: Jumper / Getty Images |
2. Los Angeles
Rent to Income Ratio: 36%
Population: 9,932,100
Median Household Income: $55,579
Rent to Income Ratio: 36%
Population: 9,932,100
Median Household Income: $55,579
 |
| No. 2: Los Angeles. Photo: CGIBackgrounds / Getty Images |
1. New York
Rent to Income Ratio: 52%
Population: 11,611,400
Median Household Income: $60,161
Rent to Income Ratio: 52%
Population: 11,611,400
Median Household Income: $60,161
 |
| No. 1: New York. Photo: Brian Kennedy / Workstock Book / Getty Images |
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