The real estate market in the United States is experiencing interesting trends and shifts. Rent prices in ten US cities have been falling, with the median cost of a one-bedroom apartment dropping to $1,505 per month. This decrease can be attributed to various factors, including economic uncertainty and an increase in the supply of rental properties. Some cities, like Augusta, GA and Lincoln, NE, have seen significant drops in rent prices. Additionally, pandemic Zoomtowns such as Miami, Phoenix, and Austin have experienced the fastest decline in rent prices, as more people choose to live in affordable areas due to remote work opportunities [8bdcc5ff].
On the other hand, Toledo, Akron, and Cleveland in Ohio have been ranked among the most affordable rental markets in the US. Toledo and Akron secured the second and third positions, respectively, with a high percentage of rental properties considered affordable. Cleveland also made it to the top 20, highlighting the contrasting rental market trends in different cities across the country [8bdcc5ff].
The impact of the COVID-19 pandemic on rental costs in the US has been significant. According to a report, the cost of renting a home has increased due to pandemic-spurred inflation, with a nationwide spike in rents of 29.9% since the start of the pandemic. This rise in rental costs has outpaced wage growth, making it challenging for renters to keep up with the increasing expenses. Some of the least affordable metro areas for renters are Miami, New York, Los Angeles, Riverside, and Tampa. In contrast, moving to a more affordable city can provide financial breathing room for those spending a large portion of their income on rent [8bdcc5ff].
In terms of real estate investment, Topeka, Kansas has emerged as the top emerging market in the US. The city offers affordable housing and a lower cost of living, making it attractive to homebuyers. Prateek Ghatage, a doctor from Mumbai, recently purchased his first home in Topeka and appreciates the slower pace of life and lower expenses. Houses priced between $150,000 and $250,000 are in high demand in Topeka. Other Midwest cities, such as Elkhart-Goshen, Indiana, Oshkosh-Neenah, Wisconsin, Fort Wayne, Indiana, and Lafayette-West Lafayette, Indiana, also rank among the top emerging markets due to the affordability of housing and lower cost of living [8bdcc5ff].
These trends in the rental and real estate markets highlight the importance of affordability and cost of living in determining the attractiveness of different cities. It is interesting to see how factors like remote work opportunities and the availability of affordable housing contribute to the overall livability and desirability of a city.
Colorado Springs, a city in Colorado, is facing its own unique challenges in the housing market. The city has a shortage of roughly 8,500 housing units, including both multifamily apartments and single-family homes. During the pandemic, there was a boom in multifamily construction, resulting in a glut of new apartment buildings. However, the major challenge is that much of the new product is for high-end renters, creating a shortage of affordable apartments. The average local rent is about $1,500 a month, and the vacancy rate is 7.2%. Builders and investors face higher material and labor costs, higher financing costs, and expensive lots. The multifamily market is now adjusting with declines in permits and projects started. However, a lower supply of housing could lead to upward pressure on prices. The U.S. is estimated to be short 7.3 million housing units for low-income renters. Montana has implemented measures to address the affordability issue, such as allowing accessory dwelling units, legalizing dense housing and mixed-use buildings, and permitting duplexes on any residential lot [65184bb0].
This article discusses the unavoidable expenses in five of America's dreamiest locations. The first location is Naples, Florida, where living well in the city requires a minimum annual income of $200,000 for a family and $62,000 for a single person. In Boise, Idaho, the median housing price is $530,000, and the cost of living is above average. Colorado Springs, Colorado, has a median housing price of $440,500, and renting a two-bedroom apartment costs around $1,600. Greenville, South Carolina, has housing costs that are 6.1% higher than the national average, with median costs of close to $400,000. Charlotte, North Carolina, has a cost of living that is 2% higher than the rest of the state, but 3% less than the national average. Housing in Charlotte is 11% lower than the national average. Overall, these locations offer desirable amenities and natural beauty, but come with higher expenses. [776eefc8].
In Utah, the fair market rent for a two-bedroom apartment is estimated at $1,398. To afford this estimated rent and utilities without paying more than 30% of income on housing, a household must earn $4,661 monthly or $55,930 annually. In 2020, the hourly wage to afford the unit was estimated to be $19.83 — with it rising just four years later to $26.89. The Kem C. Gardner Policy Institute estimated that the average real wage increased at a rate of 0.5% between 2021 and 2022 but that wage increases were not seen across all sectors. Other considerations include those who are on Social Security income; for rent to be considered affordable for them, it would be around $238. Senior homelessness has risen in Utah in recent years with a 27% increase from 2020 to 2024. The 2024 report also found that one would have to work at least 148 hours per week at minimum wage to afford a two-bedroom rental home or at least 124 hours per week for a one-bedroom [d6671a46].
Struggling renters in the US are turning to GoFundMe to raise money and avoid eviction. The increase in eviction fundraisers on the platform has been observed to be 40% higher compared to pre-pandemic levels. Many Americans are still struggling to keep up with the cost of living, as the cost of housing has increased. The median sale price of a home in the US is $438,483, and the median asking rent is $1,653. GoFundMe has provided relief to some families, but not everyone is successful in their fundraisers. The Laus, a couple from Las Vegas, were able to pay $5,000 to their landlord and are trying to raise the remaining $5,000. GoFundMe has become a last resort for many struggling renters who are facing eviction [b9fc07b4].