As experts predict that home prices will rise in 2024, young professionals with a single income face higher and higher rent prices across the country.
In December, RentHop released its third annual Singles Index ranking the most and least affordable U.S. cities for single renters which calculates the housing burden in the largest cities in the country.
The report ranked the cities using the following statistics:
- Median non-family household income from the U.S. Census
- Median advertised prices for the "studio" unit type via RentHop data
- Year-over-year price changes for the "studio" unit type based on RentHop data
- Population count by city from the U.S. Census
The most affordable U.S. city for single renters: Wichita
Wichita, Kansas, ranked as the most affordable city with a median studio rent of $565 per month. With a median nonfamily income of $38,412, a single renter can expect to spend just 17.65% of their annual income on rent, according to RentHop.
Once known as "The Air Capital of the World," Wichita is the largest city in the state. The Kansas city is also home to Koch Industries, the private conglomerate of Charles and David Koch.
Spirit AeroSystems, one of the world's largest aerostructure manufacturers, is also based in Wichita.
The city also has three universities, including Wichita State University.
The 5 most affordable U.S. cities for single renters
- Wichita, Kan.
- Minneapolis, Minn.
- Colorado Springs, Colo.
- Seattle, Wash.
- Columbus, Ohio
Minneapolis, Minnesota, is the No. 2 most affordable city for single renters in the U.S.
The median studio rent is less than $1,000 monthly, so single renters can expect to allocate 20.43% of their annual income to housing costs.
Minneapolis also ranked as the second most friendly city for single female renters, according to RentHop.
Minneapolis is one of the most neighborly cities in the U.S., according to a Neighbor.com report.
The city has one of the lowest unemployment rates in the country and the Minneapolis-St. Paul metro area is richer by median household income than New York City, Chicago, and Los Angeles, according to The Atlantic.
Among residents under 35, the Twin Cities placed in the top 10 for highest college-graduation rate, highest median earnings, and lowest poverty rate—the Minneapolis-St. Paul area is also home to the headquarters of over a dozen Fortune 500 companies, including Target, United Health, and General Mills.
The least affordable U.S. city for single renters: New York
New York City takes the top spot as the least affordable city for single renters, according to RentHop.
The median studio rent in the past year has risen over 9%, reaching $3,308 a month. Based on a median nonfamily household income of $55,810, a single renter spends about 71.13% of that on rent.
Living in the borough of Manhattan, one of the most expensive places in the world, can also contribute to rising rent costs. According to The Council for Community and Economic Research's Cost of Living Index, the cost of living there is more than double the national average.
Living costs in Manhattan are 122% higher than average.
New York — home to the New York Stock Exchange and Nasdaq — is also considered the biggest regional economy in the U.S., according to a Wealth X report.
The 5 least affordable cities for single renters
- New York, N.Y.
- Miami, Fla.
- Detroit, Mich.
- Boston, Mass.
- Philadelphia, Pa.
Miami, Florida, is the No. 2 least affordable city for single renters in the U.S.
The median studio rent is $1,986, 4.06% cheaper than last year. With a median nonfamily income of $48,826, a single person must spend 48.81% of their annual income on rent alone.
Miami, Florida, might be one of the least affordable cities for single renters, but it is a growing hotspot for Americans. According to Bloomberg, several tech and finance companies, like Anaplan and Citadel, relocated to Miami during the pandemic.
Thanks to the pandemic, Miami saw an influx of people who moved from big cities like New York and Los Angeles, which led to a rise in housing prices.
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