Americans Continue to Spend More on Rent… More Than They Can Afford

According to the latest Rental Report from Realtor.com (3-21-23), rent was less affordable in February compared to a year ago. Renters earning the typical household income spent 25.3% of their income on rent, up from 24.8% in February 2022. At 3.3%, February was the seventh consecutive month with a single-digit year-over-year increase in rent for a 0–2-bedroom unit.

The median asking rent was $1,716, down by $1 from last month and by $48 from the peak but still $296 (20.8%) higher than the same time in 2020, Realtor.com reported. Median rent across the top 50 metros was up 3.1% year-over-year for 0–2-bedroom properties.

In February, 8 of the top 50 metros had a rent share higher than 30% relative to the median household income, according to the report. The least affordable rental market was Miami, FL, followed by metros like Los Angeles, CA, New York, NY, San Diego, CA, Riverside, CA, Boston, MA, Orlando, FL, and Tampa, FL.