Rental affordability in the U.S. isn’t just about rising prices—it’s about where those increases are happening. Some cities and states are becoming increasingly unaffordable compared to others, and renters are feeling the financial pressure differently across the country.
Not all rent increases are equal
National rent prices have increased by about 16% in two years, but where you live plays a huge role in how much of your paycheck goes toward housing. In places like California and Massachusetts, the average renter now spends over 56% of their income on rent. That’s nearly double the “affordable” threshold of 30%.
But even traditionally affordable states are feeling the heat. Oklahoma, Kentucky, and Louisiana all saw rent hikes between 6% and 10%—with Oklahoma topping out at 9.7%. These increases are hitting renters in places that used to be considered “safe” from housing inflation.
Regional breakdown:
Here’s how the rent-to-income ratio compares across regions:
- West: Rent-to-income ratio of 46.4%
- Northeast: 48.1%
- South: 43% (but fastest-growing burden)
- Midwest: 37.7% (still below the national average, but climbing fast)
Florida, for example, saw its rent-to-income ratio jump by 12.1% since 2023. Arizona isn’t far behind, with an 11.7% increase. These changes are tied to migration patterns—many people moved to these states during the pandemic, and now demand is far outpacing supply.
City-level surprises
Some of the biggest rent increases are happening in cities you might not expect:
- Miami, FL: Up 21.1% YOY
- Kansas City, MO: Up 16.7%
- Louisville, KY: Up 14.2%
- Chicago, OH: Up 13%
On the flip side, a few cities have seen rent drops:
- Jacksonville, FL: Down 3%
- Atlanta, GA: Down 2.2%
- Austin, TX: Essentially flat
These shifts show how local economic factors and population trends can quickly change a market’s affordability.
More renters are moving—and struggling to settle
Another sign of pressure: renters are on the move. The percentage of renters with more than one lease has jumped since 2023, especially among Gen X and older millennials. People are relocating more often—sometimes chasing affordability, sometimes being priced out.
At the same time, vacancy rates are rising—from 6.6% to 7.1% nationally. That may sound good for renters, but it’s often a sign of mismatch: more units are being built, but not always where people can afford them.
The bottom line
If you’re a landlord or investor, these geographic insights matter. Rent pressure isn’t universal—but knowing where it’s concentrated can help you adjust screening, pricing, and retention strategies. For renters, this means being more informed and prepared before moving or signing a lease.
In our final post, we’ll explore the macro trends shaping the future—like mortgage rates, construction slowdowns, fraud risks, and how better data is helping landlords and lenders keep up.
