Only 32.1 percent of renter households currently pay less than $1,000 in monthly rent — a sharp decline from 35.2 percent in 2022 and 50.4 percent in 2012, according to an analysis from Redfin released Wednesday.
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The share of renter households paying under $1,000 per month has reached an all-time low, Redfin reported Wednesday, following rent spikes during the pandemic that have since stabilized at record highs. Fewer affordable options are making it increasingly difficult for renters to find lower-cost housing.
According to Redfin’s analysis of recent U.S. Census Bureau data, only 32.1 percent of renter households currently pay less than $1,000 in monthly rent—a sharp decline from 35.2 percent in 2022 and 50.4 percent in 2012. The report analyzes rental prices for U.S. apartments in buildings with five or more units, with data updated through 2023.
Redfin analysis of U.S. Census Bureau data; units in buildings with 5+ units
The report reveals that 47.9 percent of renter households now pay between $1,000 and $1,999 monthly, 14.4 percent pay between $2,000 and $2,999 and 5.7 percent pay $3,000 or more. The median asking rent stands at $1,634—about 20 percent higher than pandemic levels, though stable over the past year.
Sheharyar Bokhari | Redfin
The affordability crisis has forced many renters to find new ways to adapt and stay afloat.
“Rising rents have made it increasingly difficult for people to find housing in America,” Redfin Senior Economist Sheharyar Bokhari said. “Low-income workers, college students, immigrants and people on the fringes of homelessness have had to come up with new ways to be resourceful, with some taking on multiple roommates and others receiving financial support from family or friends.”
Only 7.5 percent of apartment listings have an asking rent under $1,000. Most listings fall between $1,000 and $1,999 (63.7 percent), while 22 percent are listed between $2,000 and $2,999 and 6.9 percent exceed $3,000, data from Redfin.com and Rent.com covering the three months ending Sept. 30, 2024.
Some long-term renters paying less than $1,000 have chosen to remain in their apartments, as rent increases for existing tenants are generally smaller than those for new leases. Approximately 40.2 percent of renters paying under $1,000 have stayed in their apartments for five years or more, compared to 26.1 percent of renters paying $1,000-$1,999 and 15.6 percent of renters paying over $3,000.
Oklahoma City leads the 50 largest metropolitan areas with the highest share of renter households paying under $1,000 monthly (64.3 percent), followed by New Orleans (63.5 percent), Cleveland (63.4 percent) and Louisville, Kentucky (57.6 percent).
In some of these areas, including Cleveland, Cincinnati and Louisville, demand for rental units is pushing up prices. Cleveland’s median asking rent, for instance, increased 11.1 percent over the past year, among the highest jumps in the metros Redfin analyzed.
At the opposite end of the spectrum, only 7.1 percent of San Diego’s renters pay under $1,000 per month, followed by San Jose, California (7.8 percent), Washington, D.C. (8 percent), Denver (8.5 percent) — all known for high demand and soaring rental prices.
Four metros are more likely than they were during the pandemic to pay under $1,000 monthly, including Baltimore, New Orleans, New York and Los Angeles. Baltimore reported the most significant rise in the share of renters paying under $1,000, up from 21.6 percent in 2019. New Orleans, New York, and Los Angeles also showed slight increases in the share of lower-cost rentals.
Meanwhile, Birmingham, Alabama, Phoenix and Las Vegas saw sharp declines in affordability. In Birmingham, the share of renters paying under $1,000 dropped from 61.7 percent in 2019 to 44 percent, while Phoenix’s share fell from 28.1 percent to 12.4 percent, largely due to heightened demand, which drove rents upward.
The data highlights how the pandemic-driven shifts in rental demand have led to historically high prices, pushing affordable housing options further out of reach for many renters across the country.
Email Richelle Hammiel
