Realtor.com® February Rental Report: Many Americans Are Spending More Than They Can Afford on Rent

Posted on March 22, 2023 by Admin

The least affordable metros where people spend more than 30% of their salary on rent are: Miami, Los Angeles, New York, San Diego, Riverside, Calif., Boston, Orlando and Tampa

Santa Clara, CA – March 21, 2023 (PRNewswire) While inflation has begun to ease slightly, one area continues to become less affordable for Americans – paying the rent. The Realtor.com^® February Rental Report found that despite a slight decrease in rent prices, affordability continued to get worse in 26 major metros.

In February, the median rent in the 50 largest metros declined to $1,716, down $1 from last month and $48 from the peak. However, rents are still up 3.1% from one year ago, making rental payments less affordable. Renters earning the typical household income devoted 25.3% of their income to lease a typical for-rent home, up from 24.8% a year ago.

“The general rule of thumb is that you shouldn’t spend more than 30% of your income on housing, but the data shows that in eight of the 50 largest metros, many renters are doing just that,” said Realtor.com^® Chief Economist Danielle Hale. “Slowing rental price growth is a positive for renters, but it’s important to put this in context. This means that affordability is worsening at a slower pace in many markets; it’s not getting better.”

The pace of rent growth has slowed for the past 13 months and experienced single-digit growth for the past seven months. Despite this, rent prices are still $296 (20.8%) higher than the same time in 2020 (pre-pandemic).

Least affordable rental markets in Feb. 2023:

Miami-Fort Lauderdale-West Palm Beach, Fla. – $2,349 or 42.3% of income
Los Angeles-Long Beach-Anaheim, Calif. – $2,864 or 39.2% of income
New York-Newark-Jersey City, N.Y.-N.J.-Pa. – $2,895 or 37.5% of income
San Diego-Carlsbad, Calif. – $2,844 or 36.6% of income
Riverside-San Bernardino-Ontario, Calif. – $2,145 or 32.5% of income
Boston-Cambridge-Newton, Mass.-N.H. – $2,829 or 32.0% of income
Orlando-Kissimmee-Sanford, Fla. – $1,769 or 31.1% of income
Tampa-St. Petersburg-Clearwater, Fla. – $1,691 or 31.1% of income

Head inland to find affordability
All eight of the most rent-burdened metros are located along the coast with Fla. (three markets) and Calif. (three markets) leading the pack. On the other hand, the American Heartland led the way in terms of affordability. Oklahoma City, Okla. was the most affordable rental market in February with residents paying 17.4% of income on rent, followed by Columbus, Ohio (18.2%), Minneapolis, Minn. (19.0%), Cincinnati, Ohio (19.4%), and Kansas City, Mo. (19.8%).

“While these American Heartland markets still offer relative affordability, they are not immune to price hikes. As we saw in the January Rental Report, these markets are experiencing some of the fastest year-over-year price growth in the country,” said Hannah Jones, economic research analyst, Realtor.com^®. “Before signing a lease, it’s important to take a good look at your monthly income and expenses and make sure that the payments won’t stretch your budget too much.”

Rental Data – 50 Largest Metropolitan Areas – Feb. 2023

Metro	Overall Median Rent	Overall Rent YY	Feb. 2023 Rent Share of Income	Feb. 2022 Rent Share of Income
Atlanta-Sandy Springs-Roswell, Ga.	$1,668	-1.3 %	24.5 %	25.5 %
Austin-Round Rock, Texas	$1,644	-2.0 %	21.7 %	22.1 %
Baltimore-Columbia-Towson, Md.	$1,817	2.6 %	23.3 %	23.4 %
Birmingham-Hoover, Ala.	$1,213	9.4 %	22.2 %	20.4 %
Boston-Cambridge-Newton, Mass.-N.H.	$2,829	6.8 %	32.0 %	30.6 %
Buffalo-Cheektowaga-Niagara Falls, N.Y.	NA	NA	NA	NA
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,570	1.3 %	25.4 %	25.4 %
Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.	$1,818	5.2 %	26.2 %	24.9 %
Cincinnati, Ohio-Ky.-Ind.	$1,233	8.6 %	19.4 %	18.4 %
Cleveland-Elyria, Ohio	$1,167	-0.4 %	22.2 %	22.3 %
Columbus, Ohio	$1,175	4.1 %	18.2 %	18.2 %
Dallas-Fort Worth-Arlington, Texas	$1,532	0.7 %	22.5 %	22.5 %
Denver-Aurora-Lakewood, Colo.	$1,893	0.6 %	23.4 %	23.6 %
Detroit-Warren-Dearborn, Mich.	$1,341	8.0 %	22.9 %	21.3 %
Hartford-West Hartford-East Hartford, Conn.	NA	NA	NA	NA
Houston-The Woodlands-Sugar Land, Texas	$1,388	3.4 %	22.4 %	21.5 %
Indianapolis-Carmel-Anderson, Ind.	$1,325	11.8 %	22.1 %	20.0 %
Jacksonville, Fla.	$1,465	1.2 %	24.1 %	23.9 %
Kansas City, Mo.-Kan.	$1,279	6.4 %	19.8 %	18.9 %
Las Vegas-Henderson-Paradise, Nev.	$1,572	-3.9 %	27.5 %	28.0 %
Los Angeles-Long Beach-Anaheim, Calif.	$2,864	0.9 %	39.7 %	39.2 %
Louisville/Jefferson County, Ky.-Ind.	$1,226	7.2 %	21.4 %	20.3 %
Memphis, Tenn.-Mo.-Ark.	$1,302	3.5 %	24.7 %	24.8 %
Miami-Fort Lauderdale-West Palm Beach, Fla.	$2,349	3.7 %	42.3 %	40.2 %
Milwaukee-Waukesha-West Allis, Wisc.	$1,552	7.2 %	25.7 %	24.1 %
Minneapolis-St. Paul-Bloomington, Minn.-Wisc.	$1,487	2.9 %	19.0 %	18.8 %
Nashville-Davidson–Murfreesboro–Franklin, Tenn.	$1,557	-0.8 %	24.0 %	24.1 %
New Orleans-Metairie, La.	NA	NA	NA	NA
New York-Newark-Jersey City, N.Y.-N.J.-Penn.	$2,895	12.2 %	37.5 %	33.4 %
Oklahoma City, Okla.	$980	10.9 %	17.4 %	15.9 %
Orlando-Kissimmee-Sanford, Fla.	$1,769	3.2 %	31.1 %	29.7 %
Philadelphia-Camden-Wilmington, Penn.-N.J.-Del.-Md.	$1,814	1.8 %	26.2 %	26.2 %
Phoenix-Mesa-Scottsdale, Ariz.	$1,571	-3.9 %	24.1 %	25.7 %
Pittsburgh, Penn.	$1,452	7.6 %	24.9 %	23.1 %
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,738	5.0 %	23.6 %	22.6 %
Providence-Warwick, R.I.-Mass.	NA	NA	NA	NA
Raleigh, N.C.	$1,510	0.4 %	20.5 %	20.5 %
Richmond, Va.	$1,442	4.6 %	22.0 %	21.9 %
Riverside-San Bernardino-Ontario, Calif.	$2,145	-2.0 %	32.5 %	33.6 %
Rochester, N.Y.	NA	NA	NA	NA
Sacramento–Roseville–Arden-Arcade, Calif.	$1,875	-1.2 %	26.2 %	26.7 %
San Antonio-New Braunfels, Texas	$1,346	5.4 %	23.4 %	22.2 %
San Diego-Carlsbad, Calif.	$2,844	3.0 %	36.6 %	35.4 %
San Francisco-Oakland-Hayward, Calif.	$2,896	0.5 %	27.1 %	27.1 %
San Jose-Sunnyvale-Santa Clara, Calif.	$3,309	5.9 %	26.8 %	25.9 %
Seattle-Tacoma-Bellevue, Wash.	$2,058	0.9 %	23.2 %	23.3 %
St. Louis, Mo.-Ill.	$1,307	7.6 %	20.8 %	19.8 %
Tampa-St. Petersburg-Clearwater, Fla.	$1,691	-2.0 %	31.1 %	31.7 %
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,415	4.2 %	21.9 %	21.8 %
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.	$2,116	5.1 %	21.5 %	20.9 %

Methodology Overview*
Rental data as of February for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com^®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). With the release of its February rent report, Realtor.com^® incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics. As a result of these changes, the rental data released since February 2023 will not be directly comparable with previous releases and Realtor.com^® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology.

Rental affordability analysis: The affordable monthly rent is calculated by applying the 30% rule to the estimated 2023 monthly median household income nationwide ($6,793 across the 50 largest U.S. metros, on average) and in each metro. The monthly median household income is derived from the annual median household income data sourced from Claritas. Due to the methodology changes noted, Realtor.com has made historical revisions to its prior affordability analyses. For our most recently published affordability analysis on August 2022 data published in September 2022, the national rent-to-income share has been updated to 26.2%.
*See report for fully detailed methodology

About Realtor.com^®Realtor.com^® is an open real estate marketplace built for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com^® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com^® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com^®.

Media contact: press@realtor.com

SOURCE Realtor.com

RE/MAX National Housing Report for February 2023

Posted on March 17, 2023 by Admin

Home Sales Show Strong Increase and Slight Rise in Median Sales Price Over January

Denver, CO – March 17, 2023 (PRNewswire) Despite being down 24.4% year over year, February home sales increased 16.8% from January. That was the largest month-over-month increase in 11 months and ended a five-month streak of sales declines that began in September.

The median sales price of $385,000 increased 0.6% over January, ending a seven-month streak of price declines since the peak of $426,000 in June 2022. Although home prices increased slightly month-over-month, February marked the first year-over-year drop in prices since January 2012 – as the median was 1.3% lower than a year ago ($390,000).

Inventory increased year over year for the 10^th consecutive month, and the number of homes for sale in the report’s 50 metro areas was 55.0% higher than a year ago.

“Prices have steadied and demand is strong, but the lack of available, affordable homes remains a challenge,” said Nick Bailey, RE/MAX President and CEO. “Mortgage rates are top of mind for many buyers, and as they move up or down, sales activity should generally follow suit. That’s a big factor to watch as we move into the spring.”

Laurie Thiel, Broker/Owner of RE/MAX Equity Group in Beaverton, OR is already seeing an uptick in demand and activity in her area. “As the market has stabilized, our agents are experiencing increased activity with homebuyers and sellers. Even though the time to sell a home has increased, inventory in the Portland metropolitan market remains limited.”

Other notable metrics:

Months’ Supply of Inventory in February was 1.7, down from 2.0 months in January but well above last February’s 1.0.
February’s average close-to-list price ratio was 98%, meaning that on average, homes sold for 2% less than the asking price. In January, the ratio was 97%.
Homes sold in February were on the market for an average of 45 days – three days less than January but two weeks longer than a year ago.

Highlights and local market metrics for February include:

Closed Transactions
Of the 50 metro areas surveyed in February 2023, the overall number of home sales is up 16.8% compared to January 2023 and down 24.4% compared to February 2022. The markets with the biggest decrease in year-over-year sales percentage were Anchorage, AK at -42.1%, Miami, FL at -37.2%, and New York, NY at -35.5%. No metro area had a year-over-year sales percentage increase in February.

Closed Transactions: 5 Markets with the Biggest YoY Decrease
Market	Feb 2023 Transactions	Feb 2022 Transactions	Year-over- Year % Change
Anchorage, AK	228	394	-42.1 %
Miami, FL	5,120	8,148	-37.2 %
New York, NY	6,247	9,684	-35.5 %
Las Vegas, NV	2,182	3,327	-34.4 %
San Diego, CA	1,628	2,439	-33.3 %

Median Sales Price – Median of 50 metro area prices
In February 2023, the median of all 50 metro area sales prices was $385,000, up 0.6% compared to January 2023, and down 1.3% from February 2022. The markets with the biggest year-over-year decrease in median sales price were Bozeman, MT at -13.8%, San Francisco, CA at -12.7%, and Phoenix, AZ at -7.8%. Four metro areas increased year-over-year by double-digit percentages: Burlington, VT at +16.4%, Wichita, KS at +12.5%, Milwaukee, WI at +12.3%, and Hartford, CT at +11.3%.

Median Sales Price: 5 Markets with the Biggest YoY Decrease
Market	Feb 2023 Median Sales Price	Feb 2022 Median Sales Price	Year-over- Year % Change
Bozeman, MT	$632,500	$734,000	-13.8 %
San Francisco, CA	$960,000	$1,100,000	-12.7 %
Phoenix, AZ	$415,000	$450,000	-7.8 %
Birmingham, AL	$255,000	$274,950	-7.3 %
Trenton, NJ	$316,000	$340,000	-7.1 %

Close-to-List Price Ratio – Average of 50 metro area prices
In February 2023, the average close-to-list price ratio of all 50 metro areas in the report was 98%, up compared to 97% in January 2023, and down from 101% compared to February 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Miami, FL at 94% and New Orleans, LA at 96%. The highest close-to-list price ratios were in Hartford, CT and Richmond, VA, tied at 101%.

Close-to-List Price Ratio: 5 Markets with the Biggest YoY Decrease
Market	Feb 2023 Close-to-List Price Ratio	Feb 2022 Close-to-List Price Ratio	Year-over- Year Difference
San Francisco, CA	100.2 %	111.9 %	-11.6 pp
Seattle, WA	99.0 %	108.3 %	-9.3 pp
Dallas, TX	96.5 %	102.6 %	-6.1 pp
Denver, CO	98.7 %	104.4 %	-5.7 pp
Los Angeles, CA	97.2 %	102.5 %	-5.3 pp

Days on Market – Average of 50 metro areas
The average days on market for homes sold in February 2023 was 45, down three days from the average in January 2023, and up 14 days from the average in February 2022. The metro areas with the lowest days on market were Baltimore, MD at 17, Manchester, NH at 19, and Washington, DC at 20. The highest days on market averages were in Bozeman, MT at 79, Fayetteville, AR at 78, followed by a tie at 64 between San Antonio, TX and Seattle, WA. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market: 5 Markets with the Biggest YoY Increase
Market	Feb 2023 Days on Market	Feb 2022 Days on Market	Year-over- Year % Change
Salt Lake City, UT	56	15	+282.2 %
Denver, CO	34	11	+218.0 %
Bozeman, MT	79	29	+168.2 %
Las Vegas, NV	55	21	+158.3 %
Portland, OR	51	20	+147.8 %

Months’ Supply of Inventory – Average of 50 metro areas
The number of homes for sale in February 2023 was down 7.5% from January 2023 and up 55.0% from February 2022. Based on the rate of home sales in February 2023, the months’ supply of inventory was 1.7, down from 2.0 compared to January 2023, and up compared to 1.0 in February 2022. In February 2023, the markets with the lowest months’ supply of inventory were Albuquerque, NM and Seattle, WA, tied at 0.7, followed by a three-way tie between Charlotte, NC, Hartford, CT, and Washington, DC at 0.8. The markets with the highest months’ supply of inventory were Bozeman, MT at 3.3, San Antonio, TX at 3.1, and New Orleans, LA at 3.0.

Months’ Supply of Inventory: 5 Markets with the Biggest YoY Increase
Market	Feb 2023 Months’ Supply of Inventory	Feb 2022 Months’ Supply of Inventory	Year-over- Year % Change
Raleigh, NC	1.6	0.3	+367.3 %
Dallas, TX	2.9	0.6	+343.4 %
Salt Lake City, UT	1.7	0.5	+264.0 %
San Antonio, TX	3.1	0.9	+234.3 %
Coeur d’Alene, ID	2.3	0.7	+232.6 %

# # #

About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices and a presence in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit news.remax.com.

Report Details
Beginning with the April 2022 report, RE/MAX is using a new source for aggregated data.

The RE/MAX National Housing Report is distributed monthly on or about the 15th. The Report is based on MLS data for the stated month in 50 metropolitan areas, includes single-family residential property types, and is not annualized. For maximum representation, most of the largest metro areas in the country are represented, and an attempt is made to include at least one metro area in almost every state. Metro areas are defined by the Core Based Statistical Areas (CBSAs) established by the U.S. Office of Management and Budget.

Definitions
Closed Transactions are the total number of closed residential transactions during the given month. Months’ Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pending listings) during the month. Where “pending” data is unavailable, an inferred pending status is calculated using closed transactions. Days on Market is the average number of days that pass from the time a property is listed until the property goes under contract. Median Sales Price for a metro area is the median sales price for closed transactions in that metro area. The nationwide Median Sales Price is calculated at the nationwide aggregate level using all sale prices from the included metro areas. The Close-to-List Price Ratio is the average value of the sales price divided by the list price for each closed transaction.

MLS data is provided by Seventy3, LLC, a RE/MAX Holdings company. While MLS data is believed to be reliable, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month, the previous period’s data is updated to ensure accuracy over time. Raw data remains the intellectual property of each local MLS organization.

SOURCE RE/MAX, LLC