This month, Realtor.com released a report on the top rental markets in the United States.
The real estate site ranked 325 cities and towns with a population of 75,000 and more located within the 50 largest metro areas. The rankings were based on two sets of factors on the metro and city levels:
- A measure of rental affordability, estimated by rent-to-income ratio
- A measure of rental availability, estimated by rental vacancy rate
- A measure of job stability, estimated by the forecasted unemployment rate
- A measure of job opportunities, estimated by the online job openings data
- Share of renters among households who are age 25 and over.
- Average commute time to work
The report set a cap at one city per metro area.
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Cities and towns in the Northeast and Northwest, home to major metro areas like New York City and Los Angeles, didn't make the top 10. Realtor.com's report found the top markets for renters right now are exclusively in the South and Midwest.
Cities in these areas are "experiencing economic growth, attracting many young professionals," the report says. For example, Austin, Texas and Nashville, Tennessee have seen an influx of young workers because they are emerging tech hubs and breeding grounds for startups.
No. 1 rental market in America: Austin, Texas
Money Report
Austin in the Austin-Round Rock, Texas metro area ranked as the top rental market, according to Realtor.com. The city's rent-to-income ratio was 19.7%. It also had the highest share of renters, with 56.1%.
As of June 2024, the median rent for all bedroom counts and property types in Austin, TX, is $1,771. This is 12% lower than the national average, according to Zumper.
In a separate Realtor.com report released this year, Austin ranked as the top rental market for 2024 college graduates.
Austin is one of the fastest-growing cities in the U.S. Its population grew at a rate of 2.1% from 2022 to 2023, according to the U.S. Census.
During the pandemic Austin saw an uptick in young professionals relocating to the city having fled more expensive places like San Francisco and New York City. The Texas capital is home to major tech companies like Google, Meta, and Apple.
A low cost of living and absence of a state income tax helped Austin see an 84% increase in residents becoming founders, according to a 2023 report from WalletHub.
10 best rental markets in America
- Austin, Texas
- Oklahoma City, Okla.
- Birmingham, Ala.
- San Antonio, Texas
- Minneapolis, Minn.
- Sandy Springs, Ga.
- Nashville, Tenn.
- Kansas City, Kan.
- Raleigh, N.C.
- Norfolk, Va.
Oklahoma City is the No. 2 rental market in the U.S., according to the report. The Oklahoma capital had a rent-to-income ratio of 17.7%, making it the most affordable rental market among the top 10.
Average rents in Oklahoma City range from $956 for a studio to $1,059 for a one-bedroom apartment, and $1,352 for a two-bedroom apartment, according to Apartment List.
The city is a prime destination for young people who are just getting started in their careers. A July SmartAsset analysis found that the state of Oklahoma overall had one of the lowest costs of living in the U.S. For a single person to cover their basic expenses, they would need an annual income of $40,211.
Oklahoma City is also one of the best cities for new college graduates, according to a June Zumper report.
From July 2022 to July 2023, Oklahoma City was in the top 15 cities, with the largest population gain from around 700,000 to more than 1 million people, according to the U.S. Census Bureau.
Oklahoma City is home to the National Cowboy & Western Heritage Museum and the Historic Stockyards City, one of the largest livestock markets in the world.
Some major companies with a presence in the city's metro area include Kroger, Walgreens and Dell.
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