Rent Has Gone Down in These 6 Metro Areas — But Are They More Affordable?
Written by
Martin Dasko
Edited by
Amber Barkley
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A report released earlier this year by Realtor.com revealed that the median asking rent prices in the 50 largest metropolitan areas were down 0.2% annually in January. The Rental Market Competitiveness Report from RentCafe shared that the number of available apartments slightly went up, by 0.75%, at the start of the year. However, there still aren’t enough units to meet demand, with seven tenants competing for every vacancy, which contributes to a high cost of living.
Here’s a look at the metro areas where rent has dropped — including their median rents, year of year change for a zero to two-bedroom unit and the percentage of income people spend on rent — according to Realtor.com, and why these locations may still be unaffordable to most renters.
Miami-Fort Lauderdale-West Palm Beach, Florida
- Median rent: $2,328
- Year over year change: -1.90%
- Share of income spent on rent: 37.60%
Los Angeles-Long Beach-Anaheim, California
- Median rent: $2,736
- Year over year change: -2.60%
- Share of income spent on rent: 35.90%
San Diego-Chula Vista-Carlsbad, California
- Median rent: $2,695
- Year over year change: -4.80%
- Share of income spent on rent: 31.40%
Riverside-San Bernardino-Ontario, California
- Median rent: $2,065
- Year over year change: -4.10%
- Share of income spent on rent: 28.80%
Tampa-St. Petersburg-Clearwater, Florida
- Median rent: $1,710
- Year over year change: -1.60%
- Share of income spent on rent: 28.10%
Milwaukee-Waukesha, Wisconsin
- Median rent: $1,611
- Year over year change: -0.20%
- Share of income spent on rent: 26.10%
Why Are These Metros Still the Least Affordable?
A common guideline for housing affordability is the 30% rule, which states that no more than 30% of your gross monthly income should go toward housing expenses. Many of the locations on this list are above 30%, and the rest are close to this figure. Even though rent has decreased in these metros, here’s why they are still among the least affordable markets for renters.
Not Enough Housing Options
“The biggest reason most metros continue to face housing affordability issues is extreme supply and demand imbalance,” said Austin Walker, a housing industry and markets expert for A. Walker & Company. “Housing starts in most cities are at all-time lows, coupled with lack of available land that can be freely entitled to multifamily by right per local zoning.”
Reuters recently reported that the number of new housing starts decreased by 2.3% annually in February. The RentCafe report found that the limited supply has led to lease renewal rates increasing to 63.1% at the beginning of 2025, as renters face a more competitive market.
This has all resulted in a lack of housing options, especially in the major metros that attract more potential renters. The lack of housing means that landlords can charge higher rates, and the renters are stuck with options that stretch their budgets.
Rental Demand Remains High
“In cities like New York, Los Angeles and Miami, even a small drop in rent doesn’t change the fact that most renters still spend well over 30% of their income on housing,” said Jonathan Campau, a real estate expert and founder of Luxuri. “In my experience, it’s all about the balance between supply and demand — these markets have a relentless pull due to job opportunities, cultural amenities and the overall lifestyle they offer.”
It’s important to point out that metro areas are known for attracting people due to work-related opportunities and social options. This means that even when the rent prices drop a bit, there’s a chance that they won’t go too far down, since there will likely be potential tenants open to moving.
Campau added that even if rents ease a bit, the fundamental issues of limited supply and high demand mean that affordability remains a challenge. Only so many units are available, and potential tenants will always be looking to move into metro areas.
Wages Aren’t Keeping Up
“While average rents have eased marginally, high-density urban centers remain in a longstanding state of disequilibrium between supply and demand; restrictive zoning laws, rising construction costs and the almost irresistible pull of city living up prices to levels that outpace wage growth by a wide margin,” said Tim Choate, a real estate expert and founder of RedAwning.com.
In the 2024 Annual Rent Report from Zumper, it was noted that renters spent an average of 42% of their pre-tax income on their housing expenses, with only 50% of respondents feeling that they have a decent deal on their rent. The combination of higher living costs and wages not being able to keep up has resulted in rent being less affordable, especially in locations known for elevated expenses.
Choate added, “While some of the cities themselves may show some slight decrease in rent figures, the rent-to-income ratio remains steep for residents because of the limited availability.”
With fewer housing options, continued demand for accommodations and higher living costs, it shouldn’t be surprising that many major metros are still not considered more affordable.
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