15 Cities With the Highest Rent-to-Price Ratio

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Woman shocked by cost of rent
PR Image Factory / Shutterstock.com

Editor's Note: This story originally appeared on Roofstock.

With both real estate and rental prices rising quickly over the last two years, U.S. households that don’t currently own a home are facing a major affordability crunch.

The residential real estate market took off shortly after the COVID-19 pandemic began. Boosted by increased savings, low interest rates, and government stimulus programs and motivated by a desire for more living space, buyers rushed into the market.

The increased competition sent home prices to record heights. But now, with interest rates rising in efforts to cool the market and higher prices being a new normal, many would-be buyers have been priced out.

This state of affairs has left more prospective buyers in the rental market, and as a result of increased demand, rents have spiked dramatically over the last year and a half.

For homeowners and landlords whose costs are locked in, the current market has been a boon. Homeowners have gained an estimated $6 trillion in equity during the pandemic. Landlords — especially larger corporate owners — are benefiting from greater profit margins as they raise rents to account for market conditions.

Homeowners face difficult choices in a market like this one — and based on recent trends, the squeeze for renters could continue.

A location’s rent-to-price ratio is one metric that potential buyers can use to assess whether it makes more sense to continue renting or try to purchase a home in their area.

In markets where the ratio of rents to the cost of homeownership is higher, purchasing a home makes more sense. In locations with lower rent-to-price ratios, where costs of homeownership exceed rents, real estate may be overvalued.

To find the locations with the highest rent-to-home-price ratios, Roofstock crunched numbers from the Department of Housing and Urban Development (HUD), Zillow, and the U.S. Census Bureau.

Here are the U.S. metropolitan areas with the highest rent-to-price ratios.

15. Hartford-West Hartford-East Hartford, CT

Hartford, Connecticut
James Kirkikis / Shutterstock.com
  • Rent-to-price ratio: 5.04%
  • Median rent approximation: $1,361
  • Median home price: $323,880
  • Monthly mortgage payment for a median-price home: $1,426

14. St. Louis, MO-IL

Homes in St. Louis Missouri
Rob Neville Photos / Shutterstock.com
  • Rent-to-price ratio: 5.08%
  • Median rent approximation: $1,035
  • Median home price: $244,294
  • Monthly mortgage payment for a median-price home: $1,076

13. Buffalo-Cheektowaga-Niagara Falls, NY

Buffalo, New York
Atomazul / Shutterstock.com
  • Rent-to-price ratio: 5.14%
  • Median rent approximation: $1,069
  • Median home price: $249,405
  • Monthly mortgage payment for a median-price home: $1,098

12. Louisville-Jefferson County, KY-IN

A historic district of Louisville, Kentucky
Philip Rozenski / Shutterstock.com
  • Rent-to-price ratio: 5.31%
  • Median rent approximation: $1,069
  • Median home price: $241,642
  • Monthly mortgage payment for a median-price home: $1,064

11. Virginia Beach-Norfolk-Newport News, VA-NC

West Virginia University
Steve Heap / Shutterstock.com
  • Rent-to-price ratio: 5.31%
  • Median rent approximation: $1,454
  • Median home price: $328,320
  • Monthly mortgage payment for a median-price home: $1,446

10. Cleveland-Elyria, OH

Cleveland, Ohio
Pedro Gutierrez / Shutterstock.com
  • Rent-to-price ratio: 5.35%
  • Median rent approximation: $982
  • Median home price: $220,420
  • Monthly mortgage payment for a median-price home: $970

9. New Orleans-Metairie, LA

Fotoluminate LLC / Shutterstock.com
  • Rent-to-price ratio: 5.35%
  • Median rent approximation: $1,209
  • Median home price: $271,110
  • Monthly mortgage payment for a median-price home: $1,194

8. Birmingham-Hoover, AL

Birmingham, Alabama
Sean Pavone / Shutterstock.com
  • Rent-to-price ratio: 5.37%
  • Median rent approximation: $1,100
  • Median home price: $245,833
  • Monthly mortgage payment for a median-price home: $1,082

7. Houston-The Woodlands-Sugar Land, TX

Houston, Texas skyline
Silvio Ligutti / Shutterstock.com
  • Rent-to-price ratio: 5.41%
  • Median rent approximation: $1,410
  • Median home price: $312,533
  • Monthly mortgage payment for a median-price home: $1,376

6. Chicago-Naperville-Elgin, IL-IN-WI

Homes in Chicago, Illinois
Mark Baldwin / Shutterstock.com
  • Rent-to-price ratio: 5.53%
  • Median rent approximation: $1,447
  • Median home price: $313,828
  • Monthly mortgage payment for a median-price home: $1,382

5. Memphis, TN-MS-AR

Memphis, Tennessee
Steven Frame / Shutterstock.com
  • Rent-to-price ratio: 5.55%
  • Median rent approximation: $1,077
  • Median home price: $233,002
  • Monthly mortgage payment for a median-price home: $1,026

4. Oklahoma City, OK

Tulsa Oklahoma
Valiik30 / Shutterstock.com
  • Rent-to-price ratio: 5.80%
  • Median rent approximation: $1,056
  • Median home price: $218,494
  • Monthly mortgage payment for a median-price home: $962

3. Detroit-Warren-Dearborn, MI

Detroit, Michigan
Harold Stiver / Shutterstock.com
  • Rent-to-price ratio: 5.89%
  • Median rent approximation: $1,192
  • Median home price: $243,049
  • Monthly mortgage payment for a median-price home: $1,070

2. Rochester, NY

Rochester, Minnesota
IMG_191 / Shutterstock.com
  • Rent-to-price ratio: 5.96%
  • Median rent approximation: $1,085
  • Median home price: $218,475
  • Monthly mortgage payment for a median-price home: $962

1. Pittsburgh, PA

Pittsburgh, Pennsylvania
Sean Pavone / Shutterstock.com
  • Rent-to-price ratio: 6.02%
  • Median rent approximation: $1,063
  • Median home price: $211,871
  • Monthly mortgage payment for a median-price home: $933

Methodology

House for rent
Andy Dean Photography / Shutterstock.com

To find the metros with the highest rent-to-home-price ratios, Roofstock crunched numbers from the Department of Housing and Urban Development’s 50th Percentile Rent Estimates, the U.S. Census Bureau’s 2020 American Community Survey (ACS), and Zillow’s Zillow Home Value Index. The rent-to-price ratio was calculated as the ratio of annualized median rent to Zillow’s Home Value Index.

Median rent was calculated as the weighted average of rent for a studio, 1-bedroom, 2-bedroom, 3-bedroom, and 4-bedroom apartment. The number of renter households by bedroom from the ACS were used as weights. Median home price comes from Zillow’s most recent home value index.

The monthly mortgage payment for a median-price home assumed a 30-year fixed mortgage, 20% down payment, and a 5.22% interest rate. Additionally, metros were grouped into the following cohorts based on population size:

  • Small metros: 100,000–349,999
  • Midsize metros: 350,000–999,999
  • Large metros: 1,000,000 or more

Get smarter with your money!

Want the best money-news and tips to help you make more and spend less? Then sign up for the free Money Talks Newsletter to receive daily updates of personal finance news and advice, delivered straight to your inbox. Sign up for our free newsletter today.