A record share of renters are actually “cost-burdened,” meaning they spend a high percentage of their income on housing. But at the same time as tenants in lots of parts of the US stretch their budgets, there are still cities that stand out for affordability, based on a latest report from the Harvard Joint Center for Housing Studies.
In places like Williston, North Dakota — an oil-rich town that’s seen a population surge up to now 15 years — or Jacksonville, Illinois — a small town in farm country — lower than 20% of renters are considered cost-burdened.
The Harvard housing affordability report, which was released in June but uses data from 2022, defines a cost-burdened renter as one who spends greater than the really helpful 30% of household income on housing costs (including utilities).
A record-high 22.4 million met this definition of “cost-burdened” in 2022, a rise of two million in three years. With that rise, about half of renters are actually putting at the least 30% of their income toward housing.
“Rents have been rising faster than incomes for many years,” Alexander Hermann, a senior research associate, said within the report. “Nonetheless, the pandemic-era rent surge produced an unprecedented affordability crisis that continues.”
Probably the most inexpensive cities for renters
In the event you’re seeking to live in one in every of the most affordable cities in America, you could have to make some compromises, like coping with extreme weather or living in a distant area.
Other cities that rank in the highest 10 also include small towns in Idaho, Oklahoma, Tennessee, South Dakota and Minnesota.
Here’s the list of the ten most inexpensive metro areas based on the share of “cost-burdened” renter households:
- Dickinson, North Dakota: 17.0% of renters considered cost-burdened
- Williston, North Dakota: 17.0%
- Jacksonville, Illinois: 18.4%
- Miami, Oklahoma: 23.7%
- Mountain Home, Idaho: 24.7%
- Hailey, Idaho: 24.7%
- Pierre, South Dakota: 25.2%
- Crossville, Tennessee: 25.2%
- Paris, Tennessee: 25.3%
- Fairmont, Minnesota: 25.5%
The least inexpensive cities for renters
On the flip side, renters seem like struggling essentially the most in cities where the median household income is low — earnings are available in below $30,000 in five of the highest 10 cities and below $40,000 within the five others. (For context, the standard national household income in 2022 was about $74,000.)
These cities also are likely to have median rents of $1,000 or more despite residents’ relatively low incomes.
Listed here are the least inexpensive metro areas based on the share of renter households that were “severely cost-burdened” in 2022, meaning over 50% of their income goes to rent:
- Stillwater, Oklahoma: 45.3% of renters considered severely cost-burdened
- Corvallis, Oregon: 42.4%
- Selma, Alabama: 42.1%
- Pullman, Washington: 41.6%
- Othello, Washington: 41.6%
- Port St. Lucie, Florida: 41.4%
- Auburn-Opelika, Alabama: 40.4%
- Bloomington, Indiana: 39.6%
- Athens-Clarke County, Georgia: 39.6%
- State College, Pennsylvania: 39.2%
More from Money:
8 Best Mortgage Lenders of July 2024
A Record Variety of Americans Are Spending More on Housing Than They Can Afford
‘Zombie’ Mortgages Are Back With a Vengeance to Haunt Homeowners