New Data Indicates Renters Spent Only 23.4% of Income on Rent in April 2025

Renters Spent 23.4% of Their Income on Rent in April 2025

April 2025 marked a notable trend in the American rental market—new data reveals that renters allocated only 23.4% of their incomes to rent. This percentage, a significant drop from 24.7% in April 2024, reflects the ongoing recovery from pandemic-era price spikes. The findings stem from the latest report by Realtor.com®, underscoring an evolving landscape of rental affordability across the United States.

The median asking rent across the country stood at $1,699 for that month, reflecting a slight increase of $5 from the previous month, yet it remains $60 lower than the peak pricing observed in August 2022. This stabilization points to a favorable shift where many renters now find housing costs to be more manageable compared to recent years. Chief economist at Realtor.com®, Danielle Hale, emphasized, "The typical for-rent home is affordable in most major U.S. metros for renters earning the typical household income."

Metro Comparisons

Regional data shows a varied picture in terms of rental affordability. Oklahoma City emerged as the most affordable area, where the rent for a typical 0-2 bedroom unit accounted for just 16.7% of median income. Meanwhile, Miami, Florida, continues to be the least affordable with rents consuming 37.9% of incomes. Other top cities with significant affordability challenges include New York, Los Angeles, Boston, and San Diego.

Despite these challenges, there has been a noticeable improvement in the rent-to-income ratio for these cities compared to the previous year, indicating a slow but steady progress towards making housing expenses more accessible for residents.

Marked Improvements in Specific Markets

Significantly, several regions have shown improvement in rental affordability. For instance, Miami saw a decrease in the rent burden, down by 3.1 percentage points from the previous year, indicating that even in high-cost markets, there are positive trajectories. In California, cities like San Diego and Denver have also reported improved affordability metrics, with rent burdens declining modestly as the number of new multifamily units entering the market continues to rise.

In contrast, several areas have become increasingly unaffordable, illustrating the stark differences that city and region can create in renting conditions. Traditional high-cost areas have experienced minor declines in percentages, hinting at a potential cooling down of rampant rent increases seen throughout the pandemic.

Broader Economic Context

While rents increased overall by 20.8% compared to pre-pandemic levels, this growth is considerably lower than the 54% surge in for-sale home prices seen over the same timeline. The current vacancy rate for rentals also hit 7.1%—the highest since 2018—adding more leverage to potential renters as more options are available.

As rent prices stabilize, renters express caution regarding job security and financial stability as they navigate their housing costs. Ongoing monitoring of the rental market will be crucial to understanding these economic nuances and their long-term implications on housing affordability across the nation.

Conclusion

The April 2025 report from Realtor.com® provides a refined perspective on the rental market, showcasing promising data concerning renters' financial commitments. As trends continue to evolve, the hope is that affordability remains a top priority, prompting future shifts in policy aimed at supporting renters across various U.S. metropolitan areas. Renters today are in a far better position and can look forward to a less burdensome housing situation in the coming months.

In summary, while there are positive indicators of improved affordability nationally, challenges still remain for many renters in high-cost markets. A concerted effort to increase housing stability will be essential in ensuring that this emerging trend toward lower rent burdens continues to flourish in the months ahead.