While people in Miami have long suspected it, a new WalletHub report confirms that their city has one of the most expensive rental markets in the nation. In stark contrast, the report highlights several U.S. cities where renting is significantly more affordable. According to the study, which analyzed 182 cities, Miami ranks last in rental affordability, with over 33% of a household's median annual income going solely to cover rent, as reported by NBC Miami.
In Miami, the average annual rent is a staggering $19,884, while the median annual household income is $59,390. This translates to 33.48% of income being spent on housing alone, well above the recommended 30% threshold. WalletHub warns that this imbalance severely restricts families' ability to save, build an emergency fund, or even dream of buying a home in the future.
Where to Find Affordable Rent in the U.S.
For those seeking more affordable rental options, the report directs attention to the northwestern regions of the country, far from sunny beaches. Topping the list is Bismarck, North Dakota, where only 15.34% of income is dedicated to rent. Following Bismarck are Sioux Falls, South Dakota (15.95%); Cheyenne, Wyoming (16.09%); Cedar Rapids, Iowa (16.36%); Fargo, North Dakota (16.65%); Charleston, West Virginia (16.70%); Casper, Wyoming (16.72%); Overland Park, Kansas (16.81%); Juneau, Alaska (17.45%); and rounding out the top ten, Anchorage, Alaska (17.76%). However, none of these cities boast Miami's year-round sunny beaches.
Although life is more affordable in these cities, they come with different characteristics: smaller populations (Bismarck, for example, has just 75,092 residents) and much colder climates. Yet, for those prioritizing financial stability over weather, these cities offer a significant opportunity to enhance their quality of life.
Understanding Rental Affordability in the U.S.
Why is Miami's rent considered unaffordable?
Miami's rent is deemed unaffordable because over 33% of a household's median annual income is spent on housing, exceeding the recommended 30% threshold.
Which city has the most affordable rent in the U.S.?
Bismarck, North Dakota, has the most affordable rent, with only 15.34% of income going towards housing costs.
What are the benefits of living in cities with cheaper rent?
Living in cities with lower rent allows residents to save more, build an emergency fund, and potentially afford homeownership in the future.