These Are the 10 Best U.S. Cities for Renters — and the 5 Worst

Oct 31, 2024 08:00 PM - 6 months ago 233471

Renting is now cheaper than buying successful America's 50 largest metro areas.

With home prices crossed the state up 6.1% successful April 2024 compared to April 2023, it's not astonishing that a caller Forbes Advisor and Talker Research survey of 2,000 renters recovered that 34% of renters ne'er scheme to buy.

For renters they surveyed who do scheme to buy a home successful the adjacent 1 aliases much years, the apical 3 reasons they can't bargain sooner are each related to finances:

Home prices (56%)
Lack of down costs (42%)
Interest rates (29%)

To find the champion and worst cities for renters, Forbes Advisor analyzed the 95 astir populous cities successful the U.S. pinch disposable information crossed 21 cardinal metrics spanning 3 categories.

Related: Want to Start a Small Business? Here Are the Best States to Try (and the Ones to Avoid).

To place the best cities, they considered factors including rent-to-income ratios, median rental prices, availability, and amenity prevalence, among others.

Key Takeaways:

The champion metropolis for renters is Lincoln, Nebraska, and the worst metropolis is Newark, New Jersey.
For the 2nd twelvemonth successful a row, Newark (No. 1 worst metropolis for renters) classed higher than its neighboring city, New York City (No. 3 worst metropolis for renters), owed successful portion to higher rental value changes successful the past twelvemonth (up $250, compared to NYC's $22 drop) and less disposable rental units per 100,000 households (8.5 for Newark vs. 137.2 for NYC).
The states of Nebraska and Kentucky are location to 2 of the apical 10 champion cities for renters, and North Carolina is location to three.
Half of the 10 worst cities for renters are located successful California, acknowledgment successful portion to the state's above-average median rent costs and lower-than-average rental availability.
The median value for a rental among the 95 U.S. cities considered successful our study is $1,995, and the mean value per quadrate ft is $2.09.

The champion cities for renters

1. Lincoln, Nebraska

Lincoln's score: 100 retired of 100

Lincoln classed successful the apical 10 successful the pursuing metrics:

Fifth champion for median monthly rent value astatine $1,225, compared to the study mean of $1,995.
10th champion for rent arsenic a percent of income astatine 17.6%, compared to the study mean of 21.3%.
Fourth champion for the number of disposable rentals per 100,000 households pinch 394, compared to the study mean of 164.
Ninth champion for the mean monthly value per sq. ft. astatine $1.33 (a necktie pinch Winston-Salem), compared to the study mean of $2.09.
Fourth champion for its 2.6% unemployment rate, compared to the study mean of 4.1%.

2. Omaha, Nebraska

Omaha's score: 98.01 retired of 100

Omaha classed good successful the pursuing metrics:

15th champion for median monthly rent value astatine $1,384, compared to the study mean of $1,995.
Fourth champion for rent arsenic a percent of wide income astatine 16.6%, compared to the study mean of 21.3%.
Eighth champion for an mean monthly value per sq. ft. of $1.32 compared to the study mean of $2.09.
Eighth champion for the percent of units pinch on-site parking astatine 68.8%, compared to the study mean of 52.8%. A Forbes Advisor study recovered that having astatine slightest 1 guaranteed parking spot classed arsenic the second-most basal amenity for renters (65%).

3. Raleigh, North Carolina

Raleigh's score: 96.93 retired of 100

Overall, Raleigh classed successful the amended half of 16 of the 21 metrics considered successful this study:

18th champion for rent arsenic a percent of income astatine 18.4%, compared to the study mean of 21.3%.
Fourth-best successful the readiness and amenities category.
16th champion for percent of non-apartment rentals astatine 70%, successful comparison to the study mean of 48.4%.

4. Austin, Texas

Austin's score: 94.24 retired of 100

Austin classed successful the apical 10 successful the pursuing metrics:

Eighth champion for rental value changes successful the past twelvemonth astatine -$250, compared to the study mean of -$43.
Second champion successful position of disposable rentals per 100,000 households pinch 399 vs. the study mean of 164.
Third champion for the percent of units pinch on-site parking astatine 71.8%, successful comparison to the study mean of 52.8%.
Sixth champion for the percent of units pinch in-unit laundry astatine 67.8%, compared to the study mean of 42.9%. A Forbes Advisor renters' study recovered that in-unit laundry was the 3rd astir basal amenity for renters (60%).
Sixth champion for the percent of units pinch AC astatine 76.4% vs. the study mean of 56%. Having AC aliases cardinal aerial was the astir basal amenity among 2,000 renters (77%) according to the Forbes Advisor renters' survey.

Related: This Little-Known U.S. City — Where Self-Employed People Make $179,080 a Year connected Average — Could Be a Great Place to Start a Side Hustle

5. Oklahoma City, Oklahoma

Oklahoma City's score: 92.1 retired of 100

Overall, Oklahoma City classed successful the apical half of 11 of the 21 metrics considered successful this study:

Oklahoma City classed arsenic the second-best metropolis successful the affordability category, and successful the apical 10 successful the pursuing metrics:
- Ninth champion for median monthly rent value astatine $1,300 (a necktie pinch Cincinnati), compared to the study mean of $1,995.
- Fourth champion for the mean monthly value per sq ft astatine $1.16 vs. the study mean of $2.09.

6. Lexington, Kentucky

Lexington's score: 91.15 retired of 100

Lexington classed successful the apical 20 successful the pursuing metrics:

14th champion for the mean monthly value per sq. ft. astatine $1.38 vs. the study mean of $2.09.
Seventh champion for the percent of units pinch on-site parking astatine 69.8%, compared to the study mean of 52.8%.
12th champion for complaint of convulsive crime (2.8 incidents per 1,000 residents; study mean was 7.4). In a caller Forbes Advisor survey, crime complaint was 1 of the apical considerations for renters (52%) erstwhile choosing a location.
16th champion for intermezo establishments per 1,000 establishments astatine 20.1, arsenic compared to the study mean of 18.8.

7. Durham, North Carolina

Durham's score: 90.17 retired of 100

Durham classed arsenic the second-best metropolis successful our readiness and amenities category:

Durham classed successful the apical 15 successful the pursuing metrics wrong that category:
- 13th champion for the percent of units pinch in-unit laundry astatine 61.1% arsenic compared to the study mean of 42.9%.
- 15th champion for the percent of non-apartment rentals astatine 70.9% vs. the study mean of 48.4%.
Additionally, Durham classed ninth champion for its parkland people of 89 (park scores see things for illustration really accessible parks are for residents and really overmuch spending per capita is utilized connected parks) compared to the study mean of 48.7.

8. Louisville, Kentucky

Louisville's score: 83.52 retired of 100

Louisville classed successful the apical 15 successful the pursuing cost-related metrics:

11th champion for the median monthly rent value astatine $1,350 (tied pinch Kansas City, Fresno and St. Paul), compared to the study mean of $1,995.
13th champion for rent arsenic a percent of income astatine 17.8%, compared to the study mean of 21.3%.
11th champion for the mean monthly value per sq. ft. astatine $1.34, arsenic compared to the study mean of $2.09.

It classed successful the apical 10 successful the pursuing metrics:

The champion locomotion people (96), compared to the study mean of 49.4. A precocious locomotion people indicates you tin do astir regular errands without utilizing a car.
Third champion for a motorcycle people of 79 vs. the study mean of 53.2.
Sixth champion for a parkland people of 92, compared to the study mean of 48.7.

Related: People Under 25 Have the Best Chance astatine Building Wealth successful This U.S. State — and the Worst successful These 2 Others

9. Tucson, Arizona

Tucson's score: 79.4 retired of 100

Tucson classed arsenic the sixth-best metropolis successful the readiness and amenities category:

Tucson classed successful the apical 20 successful the pursuing metrics wrong that category:
- Eighth champion for the number of disposable rental units per 100,000 households astatine 366, compared to the study mean of 164.
- 15th champion for the percent units pinch AC astatine 70.2% vs. the study mean of 56%.
Additionally, Tucson classed 16th champion for its motorcycle people of 66.3, compared to the study mean of 53.2.

10. Winston-Salem, North Carolina

Winston-Salem's score: 79.02 retired of 100

Winston-Salem classed No. 1 successful our affordability category:

The metropolis classed successful the apical 15 successful the pursuing metrics wrong that category:
Seventh champion for rental value changes successful the past twelvemonth astatine -$270 vs. the study mean of -$43.
10th champion for the mean monthly value per sq. ft. astatine $1.33 (a necktie pinch Lincoln), compared to the study mean of $2.09.
Additionally, Winston-Salem classed 15th champion for the percent of units that let pets astatine 48.4%, compared to the study mean of 33.6%.

Related: These Are the Best Places for a Middle-Class Retirement That Won't Break the Bank, According to New Research

The worst cities for renters

1. Newark, New Jersey

Newark's score: 0.0 retired of 100

Newark classed arsenic the eighth-worst metropolis successful the affordability category:

It was the worst metropolis for rental value changes successful the past twelvemonth astatine $250 (the study mean was -$43.)
Newark besides classed arsenic the worst metropolis successful the readiness and amenities category. It classed successful the bottommost 5 for the pursuing metrics:
Fourth worst for disposable rentals per 100,000 households astatine 8.5 vs. the study mean of 164.
Fourth worst for the percent of non-apartment rentals astatine 9.3% arsenic compared to the study mean of 48.4%.

2. Long Beach, California

Long Beach's score: 7.27 retired of 100

Long Beach classed arsenic the sixth-worst metropolis successful the affordability category:

It was 5th worst for rent arsenic a percent of income astatine 25.8% (a necktie pinch Anaheim and Los Angeles) compared to the study mean of 21.3%.
Long Beach besides classed arsenic the second-worst metropolis successful the readiness and amenities category:
- Seventh worst for the percent of non-apartment rentals astatine 15.4% vs. the study mean of 48.4%.
- Seventh worst for the percent of units pinch AC astatine 26.7%, compared to the study mean of 56%.

Related: Looking to Retire Soon? These Are the 10 Most Boomer-Friendly Cities to Buy a Home.

3. New York, New York

New York's score: 13.07 retired of 100

New York classed arsenic the 5th worst metropolis successful the affordability category:

Worst metropolis for the mean monthly value per sq. ft. astatine $6.88, compared to the study mean of $2.09.
Second worst for the monthly median rent value of $3,573 vs. the study mean of $1,995.

New York besides classed 11th-worst successful the readiness and amenities category:

Worst metropolis for the percent of non-apartment rentals astatine 5.2% vs. the study mean of 48.4%.
The worst metropolis for the percent of units pinch on-site parking astatine 15.8% arsenic compared to the study mean of 52.8%.

4. Anaheim, California

Anaheim's score: 13.54 retired of 100

The location of Disneyland classed arsenic the second-worst metropolis successful the affordability category:

The sixth worst for rental value changes, pinch mean rental prices jumping $105 twelvemonth complete year, compared to the study mean alteration of -$43.
Seventh-worst for rent arsenic a percent of income astatine 25.8% (a necktie pinch Long Beach and Los Angeles) vs. the study mean of 21.3%.
Anaheim is besides the 2nd worst metropolis for the number of disposable rental units per 100,000 households astatine 7, compared to the study mean of 164.

5. Oakland, California

Oakland's score: 19.79 retired of 100

Oakland classed successful the bottommost 10 successful the pursuing metrics:

The 10th worst for the mean monthly value per sq. ft. astatine $3.27 vs. the study mean of $2.09.
Ninth worst for the percent of units that let pets astatine 17% vs the study mean of 33.6%. In a Forbes Advisor study of 2,000 renters, 52% of renters said a pet-friendly portion was a necessity.
Third worst for the percent of units pinch AC astatine 14.5% vs. the study mean of 56%.
Third worst for the spot crime complaint per 1,000 residents astatine 65.5 arsenic compared to the study mean of 33.8.
Fifth worst for the convulsive crime complaint per 1,000 residents astatine 15.3 compared to the study mean of 7.4.
10th worst for the percent of non-apartment rentals astatine 18.2% vs. the study mean of 48.4%.

Related: These Are the 20 Best Cities for Small Businesses, According to a New Report

What are renters looking for?

According to the Forbes Advisor study of 2,000 renters, if costs and readiness weren't considered, renters were almost evenly divided betwixt their penchant for apartments vs. single-family homes (42% vs. 41%, respectively).

In summation to the hunt for the cleanable flat (or single-family home) to rent, a mostly of renters (52%) besides see a pet-friendly portion a necessity.

A 4th of renters opportunity it would beryllium preferable to find a pet-friendly unit, but not necessary.

When it came to at-home comforts, the 3 astir basal amenities for a mostly of renters were:

AC aliases cardinal aerial (77%)
Guaranteed parking (65%)
In-unit washer/dryer (60%)

In choosing the perfect location, renters listed their apical 3 astir important considerations arsenic crime (52%), the costs of surviving successful the area (48%) and the region to activity (28%)

Do renters scheme to buy?

Over a 3rd (34%) of renters scheme to proceed renting. Nearly half of each renters (49%) said successful a caller Forbes Advisor study they are renting because they can't spend to bargain a home.

However, astir renters do scheme to bargain successful the adjacent future, pinch 11% saying they scheme to bargain successful the adjacent 12 months, and 55% saying they person plans to buy, conscionable not successful the adjacent year.

These are the apical 3 reasons renters cited for not buying thing sooner: