Here are the 10 best rental markets in America for affordability, job opportunities and more – NBC Chicago

This month, Realtor.com released a report on the largest rental markets in the United States.

The real estate site ranked 325 cities and towns with populations of 75,000 or more located in the 50 largest metropolitan areas. The rankings were based on two sets of factors at the metropolitan and city levels:

• A measure of rental affordability estimated based on the rent-to-income ratio
• A measure of the availability of premises for rent, estimated based on the vacancy rate
• A measure of employment stability estimated based on the projected unemployment rate
• A measure of employability estimated from online job vacancy data.
• Percentage of renters aged 25 and over in households.
• Average commute time to work

The report set a limit of one city per metropolitan area.

Cities and towns in the Northeast and Northwest, home to large metropolitan areas like New York and Los Angeles, did not make the top 10. The Realtor.com report found that the best rental markets right now are only in the South and Midwest.

Cities in these areas “are seeing economic growth, attracting many young professionals,” the report says. Austin, Texas, and Nashville, Tennessee, for example, have seen an influx of young workers because they are emerging technology hubs and startup hotbeds.

America’s #1 Rental Market: Austin, Texas

Austin in the Austin-Round Rock metro area of ​​Texas was ranked as the top rental market, according to Realtor.com. The city’s rent-to-income ratio was 19.7%. It also had the highest share of renters, at 56.1%.

As of June 2024, the median rent for all bedroom counts and property types in Austin, Texas, is $1,771. This is 12% lower than the national average, according to Zumper.

In a separate Realtor.com report released this year, Austin was named the top rental market for college graduates in 2024.

Austin is one of the fastest-growing cities in the U.S. The city’s population grew by 2.1% between 2022 and 2023, according to the U.S. Census.

During the pandemic, Austin has seen a surge in young professionals moving to the city after fleeing more expensive places like San Francisco and New York. The Texas capital is home to major tech companies like Google, Meta and Apple.

According to a 2023 WalletHub report, a low cost of living and no state income tax contributed to an 84 percent increase in Austin residents deciding to start a business.

America’s Top 10 Rental Markets

1. Austin, Texas
2. Oklahoma City, Oklahoma.
3. Birmingham, Alabama.
4. San Antonio, Texas
5. Minneapolis, Minnesota.
6. Sandy Springs, Georgia
7. Nashville, Tennessee.
8. Kansas City, Kansas
9. Raleigh, North Carolina
10. Norfolk, Virginia.

According to the report, Oklahoma City is the second-largest rental market in the U.S. The Oklahoma capital had a rent-to-income ratio of 17.7%, making it the most affordable rental market among the top 10.

According to Apartment List, average rents in Oklahoma City range from $956 for a studio to $1,059 for a one-bedroom apartment and $1,352 for a two-bedroom apartment.

The city is a prime destination for young people just starting out in their careers. A July analysis by SmartAsset found that Oklahoma has one of the lowest costs of living in the U.S. For a single person to cover basic expenses, they would need an annual income of $40,211.

Oklahoma City is also one of the best cities for new college graduates, according to Zumper’s June report.

According to the U.S. Census Bureau, from July 2022 to July 2023, Oklahoma City was in the top 15 cities for population growth, going from about 700,000 to more than a million people.

Oklahoma City is home to the National Cowboy & Western Heritage Museum and the Historic Stockyards City, one of the largest cattle markets in the world.

Larger companies with a presence in the metropolitan area include Kroger, Walgreens and Dell.

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