News & Trending Mortgage & Loans News

15 Cities Becoming More Renter-Friendly and Less Buyer-Friendly

These real estate markets are tipping in favor of renters.

for rent real estate sign in front of house
Updated March 27, 2025
Fact checked

Between high prices and low housing inventory, there's not a lot of good news in real estate right now. But here's one silver lining — some markets are becoming more affordable for renters.

A recent study from Realtor.com revealed a year-over-year (YoY) decline in the percentage of income spent on rent for a small (0-2 bedroom) dwelling in 15 markets across the U.S.

By paying less than the recommended 30% of income on housing, renters can lower their financial stressAnd in these places, that is getting a little easier for renters to do.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Milwaukee, Wisconsin

Kovcs/Adobe Milwaukee Wisconsin USA Skyline

YoY change: -0.1%

Rent prices have dropped around 0.2%, which has contributed to the slight decrease in expenditures on rent. Now, a modest apartment will set renters back about $1,611 per month.

Milwaukee renters spend an average of just 26.1% of their income on rent — well below the 30% recommended limit. Homeowners, on the other hand, are still spending 30.6% of their income on housing.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Boston, Massachusetts

SeanPavonePhoto/Adobe Boston Massachusetts Downtown Skyline

YoY change: -0.2%

Rents in Beantown have actually risen slightly to 0.5% over the last year, even though the percentage of income spent on rent has gone down. From this, we can deduce that incomes have risen.

Bostonians spend about 32.1% of their income on rent, which runs about $2,925 per month. By contrast, homeowners in Boston spend about 45.8% of their income on housing.

Pittsburgh, Pennsylvania

SeanPavonePhoto/Adobe Pittsburgh Pennsylvania Skyline at twilight

YoY change: -0.3%

There is good news and bad news for Pittsburg renters: Renters only spend 23.5% of their income on rent, but buyers spend even less — only 19.7%. Rent is a modest $1,431, which is actually 0.2% more than it was last year.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.1

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY2on your uninvested cash3and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Virginia Beach, Virginia

jomo333/Adobe virginia beach at sunset

YoY change: -0.4%

Rents in Virginia Beach run about $1,494, which is down about 0.8% from last year. That represents about 22.3% of renters' income. Homebuyers, on the other hand, spend 30.4% of their income on their homes.

Minneapolis, Minnesota

andreykr/Adobe Downtown Minneapolis Minnesota

YoY change: -0.4%

Minneapolis saw the same decrease in the percentage of income spent on rent as Virginia Beach did, though the rental price is up around 0.2%, which comes out to about $1,507. Still, that only costs renters 18.7% of their income — much less than homeowners, who pay approximately 27.5% for housing.

Baltimore, Maryland

SeanPavonePhoto/Adobe baltimore maryland usa skyline

YoY change: -0.4%

Baltimore is tied at 0.40% when it comes to the decrease in the percentage of income spent on rent. However, rents have gone up 0.1% over the same year, and it's worth noting that the percentage that renters pay for housing (22.5%) is very similar to what homeowners pay (23.1%). The average rent in Baltimore runs about $1,786.

Portland, Oregon

Josemaria Toscano/Adobe beautiful vista of portland oregon

YoY change: -0.7%

Renters pay a much lower percentage of their income than homeowners do, which comes to 21.1% vs. 39.6%. Their rents are even lower than a year ago by 0.3%, and they now come to around $1,665 a month.

Philadelphia, Pennsylvania

andreykr/Adobe Philadelphia skyline at night

YoY change: -0.9%

Rents have fallen 0.5% in the City of Brotherly Love, as has the percentage of their income renters must devote to it. Most Philadelphians spend about $1,754 on rent. Meanwhile, renters and homeowners spend similar percentages of their incomes on their housing payment, which equals 23.9% and 24.9% respectively.

Houston, Texas

Kovcs/Adobe Houston, Texas, USA Skyline

YoY change: -1.3%

Part of the reason for renters spending less of their money on housing in Houston is that rent prices have decreased by 1.8%. That puts the average rent price at about $1,359 per month. Renters in Houston are putting far less of their paycheck toward housing, 20.7% as opposed to 28.5%.

Earn up to a $300 bonus and grow your money with up to 3.80% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.4

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account fees5 or overdraft fees6 and additional FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.7 Plus, you can receive your paycheck up to 2 days early.8

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. 7

Open your SoFi account and set up direct deposit

Chicago, Illinois

Oleg Podzorov/adobe dusable bridge on water with boats in the middle of skyscrapers with golden lights in chicago

YoY change: -1.4%

Rental prices have fallen a notable 3.6% in the Windy City, easing housing costs for renters, who now pay about $1,776 per month. Homeowners and renters pay very similar percentages of their income toward housing, 24.6% vs 24.8%.

Charlotte, North Carolina

Kevin Ruck/Adobe charlotte north carolina skyline during day

YoY change: -1.4%

Falling rent prices — prices are down 1.2%, which comes out to about $1,520 a month — are just part of the story behind the decrease in the percentage of rent the people of Charlotte pay. Renters are faring much better than their home owning counterparts, spending 22.4% of their incomes on housing as opposed to 32.3%.

Los Angeles, California

John/Adobe Los Angeles skyline with mountains

YoY change: -1.8%

L.A. isn't a cheap place to rent when you consider that a 0-2 bedroom apartment goes for about $2,736 a month. However, rent has gotten 2.6% cheaper since last year.

Both renters and homeowners pay over the recommended 30% of their income for housing, but L.A. renters are in much better financial shape than homeowners. They pay 35.9% of their income on housing as opposed to the whopping 74.7% that homeowners pay.

Las Vegas, Nevada

marchello74/Adobe Las Vegas Strip and city skyline

YoY change: -1.9%

Vegas renters saw their rents fall 2.2% in the last year, and they're now averaging about $1,457 per month. While Sin City renters spend below the recommended housing threshold for income at 24.1%, homeowners pay well above it 40.4%.

San Bernardino, California

Matt Gush/Adobe Twilight sunset view of San Bernardino

YoY change: -2.1%

Falling rents are a big part of the story of what's going on in the San Bernardino area. Rents have fallen a whopping 4.1% since last year, down to $2,065 per month.

And while renters don't have it easy in this expensive area of California, they're still paying below the 30% limit of their income on housing at 28.8%, while homeowners are paying well above it at 43.6%.

Memphis, Tennessee

SeanPavonePhoto/Adobe Memphis Tennessee skyline over Beale Street

YoY change: -2.4%

Renters in Memphis saw prices fall 4.3% over the last year, and rent prices are coming in at just $1,177 a month. 

That's pretty affordable when you consider it means that renters are only spending 21.1% of their income on rent, compared to the 30.8% homeowners are paying on their mortgage.

Bottom line

Aldeca Productions/Adobe Hands with keys home background

While building equity in a home is a great financial goal, renting is the more economical choice for many Americans. 

In markets where rental costs are decreasing as a percentage of income, tenants have an opportunity to improve their financial fitness by redirecting those savings toward emergency funds, retirement accounts, or a future down payment.

Paying less for housing doesn't just ease monthly budget constraints — it creates pathways to achieving a sense of financial security that can weather whatever economic storms lie ahead.

Ark7 - Real Estate Investing Benefits

  • Invest in cash-flow-generating, professionally managed rental properties without having to buy the whole property
  • Sell shares at will at no cost
  • 3% sourcing fee and 8-15% monthly management fee
  • $20 minimum investment
  • Ark7 investors have earned 5%+ annualized distributions from monthly income alone9