The Best (And Worst) Cities for Renters

At a time when huge numbers of young people can’t afford to buy their own home, the rental market is booming. The alternative for the so-called Generation Rent isn’t exactly attractive either, though. As more and more people flock to the major cities for bigger salaries and better opportunities, property owners are able to cash in on an often out of control rental market.

The rent burden can be measured by looking at the share of the average household income that the typical rent eats into each month. As our infographic below shows, based on data from RENTCafé the worst place for renters is Mexico City. With an oppressive 60 percent of earnings going to the landlord.

Further north in the U.S., the situation isn’t too much better. With 59 percent of the average salary being poured into rent in Manhattan, the New York borough is the second worst place on the list to be a renter. Those looking to move to LA and San Francisco should be prepared to kiss goodbye to 47 and 41 percent of their pay packet, respectively. Of the cities focused on here, Chicago would be the best bet, at 38 percent.

RENTCafé’s benchmark for burden-free rent is 30 percent. With this in mind, Germany’s cool capital Berlin might be a good option. Alternatively, the city with the best ratio was found to be Kuala Lumpur. Anyone renting in the Malaysian capital will be free to spend up to as much as 80 percent of their income as they so desire.

This chart shows the share of household income required to pay rent in selected cities in 2017.

Infographic: The Best (And Worst) Cities for Renters | Statista You will find more statistics at Statista

Job Gains and Household Growth Provide Positive Outlook for U.S. Housing Market

Demand for housing expected to continue despite unsustainably strong house price gains weighing on affordability

Columbus, OH – June 20, 2017 (PRNewswire) Nationwide’s latest forward-looking barometer of the U.S. housing market health continues its positive outlook despite unsustainably strong house price gains weighing on affordability. The primary reason: housing demand. Household formation growth picked up sharply over the last quarter to move above the long-term average, and job gains remain solid.

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“Household formation growth over the past year had a notable uptick this quarter over last, playing a big factor in driving up demand for housing and maintaining a strong market,” said David Berson, Nationwide senior vice president and chief economist. “We are, however, keeping a close eye on affordability and especially house price appreciation as it is well above the long-term average.”

According to Nationwide’s Health of Housing Markets Report (HoHM Report), household growth is expected to remain above average during the next few years, increasing demand on an already limited supply of homes. In fact, while the National Association of Realtors just reported that national home inventory-sales ratio is around four months at the current sales pace, several markets are experiencing a month’s supply of inventory turnover in half – and even a quarter – of that amount of time.

MSAs with the lowest housing inventory-sales ratios in 2017 Q1 are, in order: Seattle-Bellevue-Everett, Wash.; Denver-Aurora-Lakewood, Colo.; Tacoma-Lakewood, Wash.; Boulder, Colo.; Fort Collins, Colo.; Portland-Vancouver-Hillsboro, Ore.-Wash.; Mankato-North Mankato, Minn.; Olympia-Tumwater, Wash.; San Francisco-Redwood City, Calif.; Sacramento-Roseville, Calif.; Fort Worth-Arlington, Texas; Dallas-Plano-Irving, Texas; San Diego-Carlsbad, Calif.; Columbus, Ohio; and Oakland-Hayward-Berkeley, Calif.

The report, measuring data as of 2017 Q1, also found that:

  • Regionally, the rankings show positive and healthy housing trends in more than 75 percent of MSAs, suggesting sustainable expansion during the next year.
  • While markets with strong ties to the energy sector (including North Dakota, Texas, Louisiana, and Alaska) continue to dominate the bottom 10 rated MSAs, the outlook for housing in these areas is slowly improving as energy production and employment recover.

The top two metro areas are in Pennsylvania, followed by two in Oklahoma. The 10 top metro areas in the index are, in order: Lancaster, Pa.; Scranton-Wilkes-Barre, Pa.; Fort Smith, Ark.-Okla.; Lawton, Okla.; Durham-Chapel Hill, N.C.; Pittsfield, Mass.; Toledo, Ohio; Springfield, Mass.; Philadelphia; and Vineland-Bridgeton, N.J.

Victoria, Texas, ended a run of four straight quarters for Bismarck, N.D., as the bottom performing MSA. Half of the bottom 10 MSAs reside in Texas. In order, the bottom 10 are: Victoria, Texas; Bismarck, N.D.; Texarkana, Texas-Ark.; Longview, Texas; Dallas-Plano-Irving, Texas; Houma-Thibodaux, La.; Anchorage, Alaska; Sherman-Denison, Texas; Lafayette, La.; and Asheville, N.C. The Dallas metroplex and Asheville are on this list primarily because of rapid house price appreciation and a resulting drop in affordability.

More information about the HoHM Report, including the methodology used, can be found at blog.nationwide.com/housing. The HoHM Report is released on a quarterly basis online and in print.

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.

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Contact:

Ryan Ankrom
(614) 249-5145
ryan.ankrom@nationwide.com

Jordan Fisher
(312) 240-2951
jordan.fisher@edelman.com