Key Takeaways

  • Rent in over 70 U.S. cities now takes up more than 28.9% of median income, with Kahului, Hawaii, topping the list.
  • Coastal and Sun Belt cities dominate the least affordable rankings, highlighting how rising rents are squeezing budgets even in places where buying isn’t an option.

Renting may seem like the cheaper housing option—but in dozens of U.S. cities, it’s far from affordable. In some areas, renters are spending well over the recommended 30% of their income on housing, putting added pressure on already stretched household budgets.

We analyzed recent data from Zillow, which shows renters in more than 70 U.S. cities are spending a higher share of their income on rent than the national average of 28.9%.

Why This Matters to You

If you’re renting, there’s a good chance housing is taking up more of your income than it should. Knowing how your city compares can help you budget better—and understand why saving for a home may feel harder than ever.

East and West Coasts, Large Cities Dominate List of Top 25 Least Affordable for Median Income-Earner

The least affordable metros for renters, according to Zillow’s data, are mostly in warmer states like California, Florida, and Texas, along with dense, high-cost cities like New York and Los Angeles.

Here are the 10 cities with the highest percentage of the median income needed to afford typical rent, according to Zillow:

  • Kahului, HI
  • New York, NY
  • Merced, CA
  • Santa Maria, CA
  • Port St. Lucie, FL
  • Miami, FL
  • Santa Cruz, CA
  • Eagle Pass, TX
  • Los Angeles, CA
  • Ithaca, NY

More Than 50 Cities Have Median Rent That Costs Over 30% of Median Income

California takes up 11 of the top 25 spots on the list, while Florida (six), New York (two), and Texas (two) are the only other states with multiple cities in the top 25. According to Zillow, 53 cities among a group of 389 are above the 30% threshold, and 74 are above the national average of 28.9%.

California also typically occupies many top spots on lists of the most expensive cities in terms of home prices, along with major metro areas like New York, Washington, D.C., and other spots along the East and West Coasts. Many renters may not have a choice in whether they keep renting, as one recent study estimated that about one in eight American renters can afford a median-priced home, down nearly 5% from how many could afford one in 2019, before the pandemic rocked housing costs.

Ever-increasing rents and home prices have continued to stall the housing market this year, along with mortgage rates that remain elevated, and are keeping some buyers from entering the market. Meanwhile, many current homeowners are clinging to their lower rate secured years earlier.

The Bottom Line

While renting can be less expensive than owning a home, it’s no guarantee that it would be more affordable for many Americans. Zillow found that the percent of the median income that was needed to afford the median rent in the U.S. was 28.9%. The real estate platform compiled a list of hundreds of cities with that ratio and Hawaii took the top spot, while California had the most amount of spots in the top 25 least affordable cities.