For many reasons, some people find renting a better fit than owning a home. But it’s not always a bargain to rent. A recent academic analysis found many U.S. cities where it’s difficult to afford an apartment even on a six-figure income.
The Waller, Weeks and Johnson Rental Index is co-produced by the Florida Atlantic University Real Estate Initiative, Florida Gulf Coast University’s Lucas Institute for Real Estate Development & Finance and the Alabama Center of Real Estate at the University of Alabama. Their researchers rank the most overvalued rental markets from among the nation’s largest metropolitan areas using past leasing data from Zillow’s Observed Rent Index.
For the purpose of the study, analysts considered people spending more than 30% of their gross income on rent to be “rent-burdened.” And since the numbers don’t include utilities, the estimates of needed annual income for the various cities is actually conservative — renters are generally paying even more than the amounts given.
Here’s a look at the top cities from the study, counting down to the most expensive. Figures are based on May 2023 data.
11. Riverside, California
Average amount charged for rent in this city: $2,577.29
Gross income at or below which residents are considered rent-burdened: $103,091.45
Riverside, located about 50 miles southeast of Los Angeles, doesn’t have the name recognition of bigger California cities, but it’s not exactly small. The city has a population of over 320,000. Not only is the rent high here, but residents are not trading off higher payments for a shorter commute. The Riverside-San Bernardino-Ontario area recently came in at No. 2 on a list of cities to avoid if you hate commuting, with an average one-way commute of 32.2 minutes.
10. Urban Honolulu, Hawaii
Average amount charged for rent in this city: $2,734.35
Gross income at or below which residents are considered rent-burdened: $109,374.07
What price are you willing to pay for life in paradise? It’s not surprising that tropical Honolulu landed on this list. But there may be sunny days ahead for renters in the Aloha State. Gov. Josh Green announced in July 2023 that more than 10,000 new affordable rental properties for a range of income levels could be added across four of Hawaii’s islands during the next 10 years.
9. Bridgeport, Connecticut
Average amount charged for rent in this city: $2,790.62
Gross income at or below which residents are considered rent-burdened: $111,624.90
Bridgeport, the most populous city in Connecticut, made the list. But if you want to live out your days anywhere in the Nutmeg State, be forewarned: Connecticut is the seventh-most expensive state for retirees. As of 2023, a former Holiday Inn in Bridgeport was in the process of being turned into market-rate apartments, so perhaps more supply will help dampen prices.
8. Miami
Average amount charged for rent in this city: $2,829.41
Gross income at or below which residents are considered rent-burdened: $113,176.36
The Golden Girls were lucky — they lived in the Miami home owned by Southern belle Blanche Devereaux. But renting isn’t easy for Miamians, as the sunny city comes in at No. 8 on this list. And it’s not getting any cheaper: Miami topped a 2022 Realtor.com ranking of U.S. cities where rent prices are rising the fastest.
7. Los Angeles
Average amount charged for rent in this city: $2,954.41
Gross income at or below which residents are considered rent-burdened: $118,176.36
Los Angeles is a city of dreams for many would-be actors or musicians, but another of those dreams might be affordable rent. If you’re going to live within driving distance of the studios and L.A. record labels, it’s going to cost you. And to no one’s surprise, buying a home is even tougher — a survey by real estate brokerage firm Redfin reports that zero percent of the homes in L.A. and nearby Anaheim were cheaper to buy then to rent.
6. Oxnard, California
Average amount charged for rent in this city: $3,003.81
Gross income at or below which residents are considered rent-burdened: $120,152.59
Scenic Oxnard is a beach town and the most populous city in Ventura County, west of Los Angeles. You might think it would be cheaper than big-sibling L.A., but you’d be wrong. Oxnard is the first city on the list where the average rent tops $3,000 a month – though it’s not the last.
5. Boston
Average amount charged for rent in this city: $3,025.75
Gross income at or below which residents are considered rent-burdened: $121,029.86
There are plenty of reasons to live in the Boston area, including the region’s many universities including Boston University and Harvard in neighboring Cambridge. But that doesn’t mean rental prices are affordable for the stereotypically broke college student. A recent report from Point2Homes.com suggested that locals who are priced out of Boston should consider nearby Lawrence, Massachusetts, for more affordable housing.
4. San Diego
Average amount charged for rent in this city: $3,096.69
Gross income at or below which residents are considered rent-burdened: $123,867.52
From its sunny beaches to its world-class zoo, San Diego is a favorite city for many. But don’t expect inexpensive rental options to be among the city’s charms. It’s even costlier than big-sibling Los Angeles, according to the report.
3. San Francisco
Average amount charged for rent in this city: $3,151.27
Gross income at or below which residents are considered rent-burdened: $126,050.67
If you’re going to San Francisco, be sure to wear some flowers in your hair — and stuff some big bucks in your wallet. Even residents making around $126,000 — a hefty salary in many places — are considered rent-burdened here.
2. New York City
Average amount charged for rent in this city: $3,335.93
Gross income at or below which residents are considered rent-burdened: $133,437.21
Likely, no one is surprised to see New York City on this list — although some might be surprised that it’s not No. 1. The Big Apple does have a huge number of rent-stabilized apartments, but even those aren’t offering safe harbor these days. The New York Times reported in June that a panel that regulates rates for approximately 1 million rent-stabilized apartments had approved some of the highest increases seen in a decade.
1. San Jose, California
Average amount charged for rent in this city: $3,355.35
Gross income at or below which residents are considered rent-burdened: $134,213.94
Do you know the way to San Jose? It’s not a cheap way, that’s for sure. The Silicon Valley mainstay is the most expensive rental city in the country. Residents seeking a rental home need to gross more than $134,000 in order to not be considered rent-burdened. There’s slightly better news for those shouldering the rent for a two-bedroom apartment, as those rents seem to be moderating while one-bedroom rents continue to surge, the Silicon Valley Business Journal reports.
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