Renters earning $63,680 annually can now afford the median U.S. apartment, priced at $1,592 per month, a 6% decrease from August 2022 when rents peaked at $1,700. This marks the lowest affordability threshold since March 2022, according to Redfin’s January 2025 report.
The income required for rental affordability dropped 0.4% year-over-year as the median renter income rose to $54,752 in 2024, a 5% increase from 2023 and a 35% jump since 2019. The $8,928 gap between renter incomes and affordability requirements is the smallest in five years. Redfin credits the improvement to stagnant rents and rising wages, driven by a surge in apartment construction.
Austin is the most affordable metro, where renters earned $69,781, 25% above the $55,760 needed for rent. Houston and Dallas followed, with renter incomes exceeding rental requirements by 18% and 10%, respectively. On the other hand, Providence demands the highest income for rent affordability at $85,800, with local renter incomes falling 41% short. Other unaffordable metros include Miami, New York, and Los Angeles, where income deficits range from 34% to 40%.
Austin showed the greatest improvement in affordability, with the required income dropping 16% from 2023. In contrast, Providence experienced the largest increase, with the income needed for rental affordability rising by 13%.