Good news for renters — rent prices have finally started to cool thanks to an increase in supply, according to a recent study from HouseCanary. The median national rent was $2,305 at the end of 2022, and although that marks a 4.8% increase from 2021, that’s a 5.9% decrease from the end of the first half of 2022, the study found.
With rent prices cooling, it’s now cheaper to rent than own in several major cities across the U.S. To find the best big cities for renters, GOBankingRates looked at the rental markets across 50 major cities to find places where the rent prices are increasing at a slower rate than average, where the average annual rent is cheaper than the average annual mortgage, and where livability scores are high. Here’s a look at the best big cities for renters in 2023.
1. Columbus, Ohio
- Average monthly rent: $1,308
- Year-over-year change in rent (%): 6.4%
- Average monthly mortgage cost: $1,556
- Annual savings for renting vs. owning: $2,970
- Livability score: 73
2. San Antonio, Texas
- Average monthly rent: $1,431
- Year-over-year change in rent (%): 4.43%
- Average monthly mortgage cost: $1,837
- Annual savings for renting vs. owning: $4,869
- Livability score: 71
3. Raleigh, North Carolina
- Average monthly rent: $1,651
- Year-over-year change in rent (%): 5.85%
- Average monthly mortgage cost: $2,477
- Annual savings for renting vs. owning: $9,917
- Livability score: 74
4. Mesa, Arizona
- Average monthly rent: $1,750
- Year-over-year change in rent (%): 1.13%
- Average monthly mortgage cost: $2,331
- Annual savings for renting vs. owning: $6,971
- Livability score: 77
5. Austin, Texas
- Average monthly rent: $1,871
- Year-over-year change in rent (%): 4.22%
- Average monthly mortgage cost: $4,161
- Annual savings for renting vs. owning: $27,480
- Livability score: 72
6. Virginia Beach, Virginia
- Average monthly rent: $1,840
- Year-over-year change in rent (%): 5.17%
- Average monthly mortgage cost: $2,129
- Annual savings for renting vs. owning: $3,466
- Livability score: 79
7. Milwaukee, Wisconsin
- Average monthly rent: $1,097
- Year-over-year change in rent (%): 6.29%
- Average monthly mortgage cost: $1,108
- Annual savings for renting vs. owning: $131
- Livability score: 61
8. Fort Worth, Texas
- Average monthly rent: $1,766
- Year-over-year change in rent (%): 6.27%
- Average monthly mortgage cost: $1,989
- Annual savings for renting vs. owning: $2,676
- Livability score: 73
9. Jacksonville, Florida
- Average monthly rent: $1,632
- Year-over-year change in rent (%): 6.08%
- Average monthly mortgage cost: $1,744
- Annual savings for renting vs. owning: $1,345
- Livability score: 69
10. Colorado Springs, Colorado
- Average monthly rent: $1,801
- Year-over-year change in rent (%): 4.91%
- Average monthly mortgage cost: $2,567
- Annual savings for renting vs. owning: $9,198
- Livability score: 70
More From GOBankingRates
- 14 Key Signs You May Run Out of Money in Retirement
- Which Bank Gives 6% Interest on Savings Accounts?
- 3 Things You Must Do When Your Savings Reach $50,000
- 5 Ways to Invest for Retirement
Methodology: For this piece, GOBankingRates first looked at the 50 largest cities in terms of housing markets as sourced from Zillow’s December 2022 data. From there, GOBankingRates compared the 50 cities to the United States average for (1) year-over-year change in rent price in USD; (2) the percentage change in year-over-year rent, and (3) 2022 average rent. For a city to move on to the next round of rankings it had to have smaller values for factors (1) – (3) than the United States as a whole. Once these qualified (22) cities were isolated, GOBankingRates found each city’s (4) annual mortgage payment through Zillow’s mortgage calculator; assuming a 20% down payment with a 6.09% 30-year fixed rate mortgage as sourced from the Federal Reserve Bank of St. Louis: 30-Year Fixed Rate Mortgage Average in the United States data and property taxes sourced from the Tax Foundation. GOBankingRates then found (5) the difference between an annual mortgage payment and annual rent. If the annual rent payment was the smaller figure, the city moved into the final round. In the final round, GOBankingRates found each city’s (6) livability score as sourced from Areavibes. Then, GOBankingRates scored and combined factors (3), (5) and (6), with the lowest score being the best. In final calculations, factor (3) was weighted 2x and factor (6) was weighted 1.5x. All data was collected and is up to date as of Feb. 2, 2023.