Best US cities for renters as minimum wages rise and cost of housing falls
Renters across the US have something to cheer about: Rents declined in November, making it a bit more affordable for many—especially those earning minimum wage.Across the 50 largest metros, the median rent was $1,703—down $17 from last month and $57 from its peak in August 2022, according to a new Realtor.com report.The median rent for 0-2 bedroom properties dropped by $19 year over year, or 1.1%, marking a hopeful trend in rental affordability.“As the rental market has cooled, rents have fallen for 16 consecutive months nationwide,” says Realtor.com economist Jiayi Xu in her analysis.But how much relief will this drop bring to renters, especially in cities where affordability remains challenging? It might be substantial, considering that the minimum wage is set to rise in 2025.Renters saved last month across the board, with smaller properties seeing the largest percentage drop in rents.The median rent for studio apartments fell by 1.6% year over year, to $1,423, a $67 decrease from its peak in October 2022.One-bedroom units saw median rents drop 1.2%, to $1,585, $73 below their August 2022 peak.And rents in two-bedroom units decreased by 1.1%, to $1,886, $75 less than their high in August 2022.Despite these declines, Xu’s analysis reveals that rents have risen significantly since before the COVID-19 pandemic.
Still, the increase isn’t as dramatic when compared with other economic changes over the same time.For example, while the typical rent in November 2024 was $261 (18.1%) higher than in 2019, overall consumer prices jumped 22.7% in the same five years.Taking a broader view of housing costs, Xu notes that the rise in rents “pales in comparison to the 49.7% increase in the median price per square foot of for-sale home listings in the five years ending November 2024.”Starting Jan.1, 2025, minimum wage increases in 23 of the top 50 metros are expected to bring some much-needed relief.Even with falling rents, minimum-wage earners face an up...