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Renters Spent 23.4% of their Incomes on Rent in April, Significantly Under the "30% Rule"

1. U.S. rents are becoming more affordable, declining slightly year-over-year. 2. Median asking rent in April 2025 was $1,699, $60 below peak. 3. Miami and other major metros remain least affordable but show improvement. 4. New construction is easing rent pressures, raising vacancy rates. 5. Rental affordability aligns with income growth increasing household buying power.

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Why Bullish?

The easing of rental pressures can lead to consumer confidence. This aligns with trends from earlier housing crises where price stabilization positively impacted housing companies, including NWS.

How important is it?

As Realtor.com is operated by a News Corp subsidiary, trends in the rental market are closely tied to NWS's real estate and media interests. Improved rental affordability contributes positively to consumer markets, likely benefiting NWS's business segments.

Why Long Term?

Continuous improvement in affordability and new constructions suggest stable rent prices. This may attract new residents, boosting long-term demand for housing-related services offered by NWS.

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Miami, New York, Los Angeles, Boston and San Diego are the least affordable markets for renters while Oklahoma City, Okla; Austin, Texas; Columbus, Ohio; Raleigh N.C.; and Minneapolis, Minn., are the most affordable markets Surge in Multi-Family New Construction Has Continued to Ease Rent Rates and Improved Affordability , /PRNewswire/ -- Across the U.S. rents are growing more affordable after pandemic era spikes. New data from the Realtor.com® April Rent Report found that renters earning the typical household income devoted 23.4% of their income to lease a typical for-rent home, which was down from 24.7% in April 2024. While this varies metro to metro, only five of the top 50 U.S. metros had a rent share higher than 30% relative to the median household income. Nationally in April the median asking rent settled at $1,699, showing a slight $5 increase from the previous month but remaining $60 below its August 2022 peak. "One approach to measuring rental affordability is the 30% rule of thumb that says a household should spend no more than 30% of its gross income on housing costs. Using this measure, the typical for-rent home is affordable in most major U.S. metros for renters earning the typical household income," said Danielle Hale, chief economist, Realtor.com®. "Even in unaffordable markets, we saw improvement in April. Generally small but steady rent declines have chipped away at rental costs for nearly 3 years, and income growth has boosted household buying power. While this is good news, rent prices are still roughly 20% above pre-pandemic levels, and consumers have expressed concerns about their job security and financial situation in recent surveys."  Oklahoma City, Okla., emerged as the most affordable rental market in April, where the median rent for a typical 0-2 bedroom unit represented only 55.6% of the estimated maximum affordable rent. Furthermore, significant affordability improvements observed in Southern markets like Miami, and Tampa, Fla., last year were followed by notable gains in Western metros this year, including San Diego, Denver, and Phoenix, Ariz. Miami stood out as the least affordable rental market in April. The median rent for a standard 0-2 bedroom unit in Miami was 1.3 times greater than the estimated maximum affordable rent for a household with the median income. Miami is followed by major coastal and Southern California metros including New York, Los Angeles, Boston, and San Diego. Despite being the least affordable, the rent-to-income ratio in all five of these metros has declined compared to the same time last year, signaling a modest improvement in affordability across these cost-burdened markets. Rental Markets With a Rental Burden Above 30% of Income (0-2 Bedrooms)–April 2025 Rank Metros April 2025 Median Rent April 2025 Rent Share of Income Percentage Point Changes (April 2025 vs. 2024 Maximum Affordable Rent at Current HH Income April 2025 Rent vs. Max Affordable Rent (Ratio) 1 Miami-Fort Lauderdale-West Palm Beach, FL $2,345 37.9 % -3.1 ppt $1,857 1.26 2 New York-Newark-Jersey City, NY-NJ $2,936 37.1 % -0.2 ppt $2,374 1.24 3 Los Angeles-Long Beach-Anaheim, CA $2,712 35.6 % -1.9 ppt $2,285 1.19 4 Boston-Cambridge-Newton, MA-NH $2,968 32.6 % -0.4 ppt $2,732 1.09 5 San Diego-Chula Vista-Carlsbad, CA $2,669 31.1 % -3.9 ppt $2,577 1.04 Top 5 Most Affordable Rental Markets (0-2 Bedrooms)–April 2025 Rank Metros April 2025 Median Rent April 2025Rent Share of Income Maximum Affordable Rent at Current HH Income April 2025 Rent vs. Max Affordable Rent (Ratio) 1 Oklahoma City, OK $994 16.7 % $1,788 0.56 2 Austin-Round Rock-San Marcos, TX $1,470 17.2 % $2,560 0.57 3 Columbus, OH $1,210 18.0 % $2,012 0.60 4 Raleigh-Cary, NC $1,489 18.2 % $2,453 0.61 5 Minneapolis-St. Paul-Bloomington, MN-WI $1,497 18.5 % $2,421 0.62 Rental Markets With the Most Improved Affordability (0-2 Bedrooms)–April 2025 Rank Metros April 2025 Median Rent April 2025 Rent Share of Income April 2024 Rent Share of Income Percentage Point Changes (April 2025 vs. 2024) 1 San Diego-Chula Vista-Carlsbad, CA $2,669 31.1 % 35.0 % -3.9 ppt 2 Denver-Aurora-Centennial, CO $1,771 19.9 % 23.2 % -3.3 ppt 3 Jacksonville, FL $1,512 22.2 % 25.3 % -3.1 ppt 4 Miami-Fort Lauderdale-West Palm Beach, FL $2,345 37.9 % 41.0 % -3.1 ppt 5 Birmingham, AL $1,173 19.6 % 22.2 % -2.6 ppt 6 Phoenix-Mesa-Chandler, AZ $1,495 20.5 % 22.8 % -2.3 ppt While April rents were $293 (20.8%) above pre-pandemic 2019 levels, this growth aligns with the rise in overall consumer prices during the same six-year period. This rent increase is significantly less than the 54% surge in the median price-per-square foot of for-sale home listings over the same timeframe. The relative steadiness in rents should translate into slower shelter inflation in the months ahead, alleviating one of the biggest recent drivers of a rising price level. Nationally Rents Decline For Another MonthAcross the 50 largest metropolitan areas, the median asking rent settled at $1,699, showing a slight $5 increase from the previous month but down $29 or 1.7% from last year, and $60 below the peak reached in August 2022. Rent prices experienced a seasonal increase in April, a common trend during the spring and summer months. An ongoing influx of new multifamily units is slowing the pace of rental increases, thereby easing pricing pressure. Consequently, the national rental vacancy rate increased to 7.1% in the first quarter of the year—the highest it has been since the third quarter of 2018. This higher vacancy rate creates a more advantageous environment for renters this spring. National Rents by Unit Size Unit Size Median Rent Rent YoY Consecutive Months of Decline Total Decline from Peak Rent Change - 6 Years Overall $1,699 -1.7 % 21 -3.4 % 20.8 % Studio $1,410 -1.9 % 20 -5.2 % 16.8 % 1-Bedroom $1,578 -1.9 % 23 -4.8 % 19.1 % 2-Bedroom $1,887 -1.7 % 23 -3.7 % 22.3 % Top 50 Markets Rental Trends (Alphabetical Order) Median Asking Rent YOY Change April 2025 Rent to Income Share April 2024 Rent to Income Share Atlanta-Sandy Springs-Roswell, GA $1,575 -3.80 % 21.5 % 23.4 % Austin-Round Rock-San Marcos, TX $1,470 -3.70 % 17.2 % 19.4 % Baltimore-Columbia-Towson, MD $1,815 0.80 % 22.9 % 23.1 % Birmingham,  AL $1,173 -5.30 % 19.6 % 22.2 % Boston-Cambridge-Newton, MA-NH $2,968 -0.10 % 32.6 % 33.0 % Buffalo-Cheektowaga,  NY NA NA NA NA Charlotte-Concord-Gastonia, NC-SC $1,526 -0.30 % 22.5 % 23.7 % Chicago-Naperville-Elgin,  IL-IN $1,779 -2.80 % 24.6 % 25.8 % Cincinnati, OH-KY-IN $1,295 -3.70 % 19.4 % 21.1 % Cleveland, OH $1,157 -5.50 % 20.2 % 21.7 % Columbus,  OH $1,210 0.70 % 18.0 % 18.5 % Dallas-Fort Worth-Arlington, TX $1,463 -1.70 % 19.8 % 21.5 % Denver-Aurora-Centennial,  CO $1,771 -7.10 % 19.9 % 23.2 % Detroit-Warren-Dearborn,  MI $1,307 0.70 % 21.6 % 21.7 % Hartford-West Hartford-East Hartford, CT NA NA NA NA Houston-Pasadena-The Woodlands, TX $1,355 -2.20 % 20.6 % 22.0 % Indianapolis-Carmel-Greenwood, IN $1,291 -2.60 % 19.4 % 20.8 % Jacksonville,  FL $1,512 -3.40 % 22.2 % 25.3 % Kansas  City, MO-KS $1,381 4.90 % 20.7 % 19.6 % Las Vegas-Henderson-North Las Vegas, NV $1,459 -2.40 % 24.1 % 26.1 % Los Angeles-Long Beach-Anaheim, CA $2,712 -3.00 % 35.6 % 37.5 % Louisville/Jefferson County, KY-IN $1,248 -1.30 % 20.6 % 21.8 % Memphis, TN-MS-AR $1,181 -2.80 % 21.2 % 23.2 % Miami-Fort Lauderdale-West Palm Beach, FL $2,345 -2.30 % 37.9 % 41.0 % Milwaukee-Waukesha,  WI $1,656 0.10 % 26.8 % 26.8 % Minneapolis-St. Paul-Bloomington, MN-WI $1,497 -2.30 % 18.5 % 19.5 % Nashville-Davidson--Murfreesboro--Franklin,  TN $1,530 -2.00 % 21.6 % 23.2 % New Orleans-Metairie, LA NA NA NA NA New York-Newark-Jersey City, NY-NJ $2,936 2.30 % 37.1 % 37.3 % Oklahoma City, OK $994 -0.50 % 16.7 % 17.5 % Orlando-Kissimmee-Sanford, FL $1,688 -0.80 % 27.0 % 28.6 % Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $1,754 -2.00 % 23.8 % 25.1 % Phoenix-Mesa-Chandler,  AZ $1,495 -4.40 % 20.5 % 22.8 % Pittsburgh,  PA $1,459 -1.00 % 24.0 % 24.6 % Portland-Vancouver-Hillsboro, OR-WA $1,668 -3.60 % 21.1 % 22.6 % Providence-Warwick,RI-MA NA NA NA NA Raleigh-Cary,  NC $1,489 -3.50 % 18.2 % 20.1 % Richmond, VA $1,501 -0.20 % 20.6 % 22.1 % Riverside-San Bernardino-Ontario, CA $2,058 -4.00 % 28.7 % 30.7 % Rochester, NY NA NA NA NA Sacramento-Roseville-Folsom, CA $1,869 -1.90 % 24.0 % 25.0 % San Antonio-New Braunfels, TX $1,239 -1.70 % 20.3 % 21.0 % San Diego-Chula Vista-Carlsbad, CA $2,669 -6.30 % 31.1 % 35.0 % San Francisco-Oakland-Fremont, CA $2,717 -2.40 % 24.4 % 26.1 % San Jose-Sunnyvale-Santa Clara, CA $3,362 1.60 % 25.8 % 25.9 % Seattle-Tacoma-Bellevue, WA $1,968 -1.70 % 20.8 % 21.6 % St. Louis, MO-IL $1,328 -0.40 % 20.0 % 21.3 % Tampa-St. Petersburg-Clearwater, FL $1,741 -0.50 % 28.6 % 30.2 % Virginia Beach-Chesapeake-Norfolk, VA-NC $1,490 -1.80 % 22.3 % 22.9 % Washington-Arlington-Alexandria, DC-VA-MD-WV $2,307 1.90 % 22.5 % 23.0 % MethodologyRental data as of April 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019. Rental affordability analysis: The affordable monthly rent is calculated by applying the 30% rule to the estimated 2025 monthly median household income nationwide ($7,263) across the 50 largest U.S. metros, on average) and in each metro. The monthly median household income is derived from the annual median household income data sourced from Claritas. About Realtor.com®Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. Media contact: Mallory Micetich, [email protected]  SOURCE Realtor.com WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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