With housing affordability near an all-time low, every penny counts — especially if you're renting in 2023.
A new report from Wallethub identifies where renters can get the maximum bang for their buck this year. The personal finance company analyzed data from the US Census Bureau, Zillow, and more to compare key indicators of affordability, rental attractiveness, and quality of life in more than 180 markets across the US.
The study weighed factors including rents, their annual price growth, employment opportunities, and the cost of living in each metro. Cities aren't ranked by cheapest rents.
It discovered that renters in parts of Arizona and California — which had a strong showing in the top 15 — are seeing a greater benefit to renting than their peers living in other parts of the US.
It might be surprising, but even San Francisco ranked in the top 15. Jill Gonzalez, an analyst at Wallethub, said that while rents are expensive in the Golden City, its generally high incomes help balance out its affordability.
"We looked at two things here: rental market affordability and quality of life. And within those categories, there are several other metrics," Gonzalez told Insider. "San Francisco, although rent is very high, income is also very high. So when you're actually looking at rental affordability, that is calculated not only by sheer rent, but then dividing that by median annual household income. So that number is actually not that disappointing."
In 2023, rent growth has slowed dramatically in the US as affordability wanes and fears of a recession grow. More than 40% of renter households in the country said they were rent burdened between 2017 and 2021 (the most recent Census data on the topic), spending more than 30% of their pre-tax income on rent.
There's a glimmer of hope: There are still metros in the US where it's possible to have a high quality of life and rents that jive with the offerings of the local economy, allowing renters to thrive within their communities.