Looking for a place to rent? You might want to consider Austin, TX.
Austin was ranked the best rental market in the United States based on the number of affordable renting options and job opportunities, according to a new report by Realtor.com®. Renters here are also in good company, with the city having the highest share of renters (56.1%) among the top 10 rental markets.
“Living in markets with a high share of renters indicates excellent access to urban amenities, including public transportation, entertainment, dining options, and cultural attractions, which are highly appealing to renters,” explains Jiayi Xu, the Realtor.com economist who wrote this report.
To find the best rental markets, the data team ranked 325 cities and towns with a population of more than 75,000 located within the 50 largest metro areas on the following factors, in terms of what makes a place great for renters.
This includes analyzing rental affordability, which is estimated by rent-to-income ratios, as well as rental availability. It also takes into account job stability, estimated by the forecasted unemployment rate as well as the number of job opportunities, based on online jobs availability data, and the average commute time to work. The analysis also considered the number of renters among households over the age of 25.
Spoiler alert: All top 10 rental markets are located in the South and Midwest, with none from the Northeast or West.
Even the top rental markets in the Northeast ( Lawrence, MA) and in the West ( Denver) failed to make the top 10.
“The relatively low rental affordability and low rental vacancy rates have caused these two cities to drop off the top 10 list,” says Xu.
So which other cities did make the cut? The top 10 rental markets in the United States are as follows, according to the Realtor.com report:
Austin, TX
Metro area: Austin– Round Rock, TX
Rent-to-income ratio: 19.7%
Average commute: 26 minutes
Austin is one of the fastest-growing U.S. cities. With major tech companies like Google, Apple, and Oracle expanding into the area, it’s become a bustling technology hub with loads of job opportunities and a low unemployment rate (3.3%).
The Texas state capital also features culturally diverse neighborhoods and a vibrant music scene.
Realtor.com recently named Austin the top rental market for 2024 college graduates.
(Realtor.com)
Oklahoma City, OK
Rent-to-income ratio: 17.7%
Average commute: 24 minutes
Oklahoma City is the most affordable rental market in the top 10, with a rent-to-income ratio of 17.7%.
“A lower rent-to-income ratio is desirable, as it means a smaller portion of monthly income goes toward rent, leaving more budget available for other expenses,” Xu says.
And there are lots of fun things to spend those savings on, including award-winning restaurants, Oklahoma City Thunder basketball games, and OKC Philharmonic concerts.
(Realtor.com)
Birmingham, AL
Metro area: Birmingham– Hoover, AL
Rent-to-income ratio: 22.9%
Average commute: 24 minutes
This scenic city has great breweries, top-tier health care, and plenty of incredible places to hike, bike, and fish.
It also has the highest number of vacant rentals (12.3%) among the top 10.
“This means renters could have an abundance of rental properties to choose from and may wield greater bargaining power when negotiating with landlords,” Xu says.
(Realtor.com)
San Antonio, TX
Metro area: San Antonio– New Braunfels, TX
Rent-to-income ratio: 21.3%
Average commute: 26 minutes
San Antonio, with its foodie culture and excellent music venues, is often compared to Austin.
But one thing that sets it apart is the iconic San Antonio River Walk, which is one of the top attractions in Texas. The 15-mile walkway offers amazing restaurants, chic hotels, and excellent boutiques.
The price of all that entertainment can add up, so luckily San Antonio ranks high for job openings, meaning there are plenty of employment opportunities.
Additionally, San Antonio has a large military presence, which offers strong community support, quality services, cultural diversity, and enhanced security, making it an even more attractive place to live.
(Realtor.com)
Minneapolis, MN
Metro area: Minneapolis– St. Paul– Bloomington, MN-WI
Rent-to-income ratio: 19.3%
Average commute: 24 minutes
Minneapolis is an outdoor lover’s paradise, with more than 22 lakes in the city limits and lots of green spaces, including parks, gardens, and biking trails.
The Midwest city is economical as well: Minneapolis is the second most affordable rental market within the top 10. The Minneapolis metro area also ties with the Nashville metro for the lowest forecasted 2024 unemployment rate (2.9%) among the top 50 rental markets.
A lower forecasted unemployment rate indicates that renters might face less competition when looking for jobs and enjoy better job security, says Xu.
(Realtor.com)
Sandy Springs, GA
Metro area: Atlanta– Sandy Springs– Alpharetta, GA
Rent-to-income ratio: 23.4%
Average commute: 27 minutes
Sandy Springs is just 14 miles from Atlanta, so it offers a nice mix of urban and suburban living. This charming city has excellent schools, a diverse dining scene, and more than a dozen beautiful parks.
More than half of residents rent in Sandy Springs. It has the third-highest share of renters (54.6%) among the top 10 cities.
Here’s why that’s a good thing: “Markets with a high share of renters are more likely to have well-established tenant protection policies, such as rent controls, eviction protections, and high habitability standards,” Xu explains.
(Realtor.com)
Nashville, TN
Metro area: Nashville– Davidson– Murfreesboro– Franklin,TN
Rent-to-income ratio: 23.8%
Average commute: 26 minutes
Nashville is known for its amazing restaurants, fun nightlife, and incredible music scene, so renters will have no shortage of things to do here.
And the Music City’s job market is booming. The Nashville metro has the lowest forecasted unemployment rate (2.9%) among the top 50, tying with Minneapolis for the No. 1 spot.
Even though tons of people are moving to the city for business and pleasure, there are still plenty of rental properties to choose from, since Nashville has a 9.2% rental vacancy rate.
According to Xu, one reason for the higher vacancy rates in top markets like Nashville could be the surge in new multifamily construction and completion in the South and the Midwest, which expands the overall rental inventory.
(Realtor.com)
Kansas City, MO
Metro area: Kansas City, MO– Kansas City, KS
Rent-to-income ratio: 19.7%
Average commute: 24 minutes
Kansas City is famous for its barbecue, live jazz scene, and championship football team. This big city with a small-town feel is also home to a vibrant arts community, with world-class museums and galleries galore.
Kansas City made the top 10 due to its ample job opportunities and affordability—two traits that also attract real estate investors.
(Realtor.com)
Raleigh, NC
Rent-to-income ratio: 20%
Average commute: 25 minutes
Raleigh is a buzzing tech hub that ranks high on our list for affordability. You can get more bang for your buck here and enjoy incredible craft beer, plentiful food trucks, and great golf courses. (Plus, the beach is only a two-hour drive.)
And speaking of drives, the average commute in Raleigh is 25 minutes, which is shorter than the city/town average of 30 minutes.
“This translates to a potential saving of 43 hours per year for a commuter traveling five days a week,” Xu says.
(Realtor.com)
Norfolk, VA
Metro area: Virginia Beach– Norfolk– Newport News, VA-NC
Rent-to-income ratio: 22.8%
Average commute: 25 minutes
Norfolk is a beautiful community with miles of spectacular beaches with plenty of boating and fishing spots. It’s also a great place to visit historic battleships, the Chrysler Museum of Art, and the Virginia Zoo.
When it comes to being a top rental market, this military city ranks high for its stable job market and large number of rentals.
(Realtor.com)
