Affordability Crisis: Renters in major cities face up to $4,800 budget gap
November - New data from SpareRoom, the leading roommate matching service, reveals the shocking extent of the rental affordability crisis, with renters in major metro areas forced to go up to $4,800 a year over their budget, as rents hit record highs.
Almost all major metro areas saw average roommate rents hit record-highs this year*. New York currently has the most expensive roommate rent, averaging $1,540 a month, followed by Boston ($1,360) and San Diego ($1,340). While high rents in notoriously expensive cities like New York are unsurprising, looking at the average renter's budget shows just how wide the affordability gap has grown, not just in NYC but across the US.
SpareRoom analyzed the average renter's budget** across the 20 busiest metro areas which revealed that Denver is the most unaffordable city for roommates, with a budget gap of -$402. Austin and Dallas follow closely behind with a difference of -$349 and -$345, respectively. None of the busiest metro areas have average renter budgets that would cover the typical monthly rent.
Affordability Gaps in Top U.S. Metro Areas (Average Rent vs. Renter Budget), ranked by least affordable
| Metro | Budget | Rent | Difference (pcm) | Difference (annual) |
|---|---|---|---|---|
| Denver, CO | $872 | $1,274 | -$402 | $4,824 |
| Austin, TX | $827 | $1,176 | -$349 | $4,188 |
| Dallas, TX | $748 | $1,093 | -$345 | $4,140 |
| Houston, TX | $716 | $1,051 | -$335 | $4,020 |
| Washington D.C. | $925 | $1,248 | -$323 | $3,876 |
| New York, NY | $1,234 | $1,540 | -$306 | $3,672 |
| Miami, FL | $979 | $1,280 | -$301 | $3,612 |
| Tampa, FL | $834 | $1,135 | -$301 | $3,612 |
| Raleigh, NC | $732 | $1,030 | -$298 | $3,576 |
| Chicago, IL | $871 | $1,156 | -$285 | $3,420 |
| Los Angeles, CA | $1,100 | $1,332 | -$232 | $2,784 |
| Orlando, FL | $817 | $1,044 | -$227 | $2,724 |
| San Diego, CA | $1,134 | $1,340 | -$206 | $2,472 |
| Phoenix, AZ | $820 | $1,023 | -$203 | $2,436 |
| Charlotte, NC | $779 | $974 | -$195 | $2,340 |
| Boston, MA | $1,167 | $1,360 | -$193 | $2,316 |
| Las Vegas, NV | $778 | $966 | -$188 | $2,256 |
| Riverside, CA | $850 | $1,037 | -$187 | $2,244 |
| San Francisco Bay Area, CA | $1,158 | $1,338 | -$180 | $2,160 |
| Atlanta, GA | $799 | $915 | -$116 | $1,392 |
Matt Hutchinson, SpareRoom spokesperson comments: “When you look at how much rents have risen over the past year it's easy to see why renters are feeling so stretched. But it's only when you look at them alongside the typical renter's budget that you realise just how vast the affordability gap really is. As rents continue to hit record highs, renters are being forced to stretch their budgets yet again - the question is just how far can they stretch before it becomes one rent rise too many?
It's no surprise that notoriously expensive cities such New York top the list for high roommate rents, but we're also seeing an affordability crisis in traditionally more affordable cities, highlighting the increasing pressure on renters nationwide.”
***
Notes to editors
*https://www.spareroom.com/content/info-statistics/renters-struggle-as-rents-break-records ↩
**Based on an analysis of 70,040 'room wanted' ads in Q3 2024 ↩