With rent prices climbing, perhaps you’re wondering where you can go to find affordable apartments.
According to the Apartments.com February Rent Growth Report, the five best cities for renters right now are:
Nationally, rent prices are still on the rise. However, at the end of February, rent prices were up by just 2.9 percent, which was a smaller increase than January’s 3.2 percent. Rents don’t fluctuate evenly, however. Where some cities see rent growth slowing down or even decreasing, other cities are still seeing rent climb. The five cities above all saw decreases or only slight increases in rent prices.
Many Americans can't afford to buy a home.
One of the reasons rent prices continue to rise is because many Americans can’t afford to buy a home. According to a recent CoStar News article, nearly 50 percent of US households can’t afford to pay more than $250,000 for a house, but the median price for a single-family home is currently $425,786. The article concludes, “70 percent, or more than 93 million of all households, cannot afford that amount based on their current household income.”
Since fewer Americans can afford to buy a house, they’re staying in the rental market. This continued demand for rentals could keep rent prices high, so finding a cheap apartment is more critical now than ever before.
So, what’s happening in the cities listed above? Here’s a deeper look at each.
Las Vegas, Nevada
Rent in Las Vegas is down roughly 30 percent over last year. This means you can find a one-bedroom apartment for about $1,144 a month, depending on which Las Vegas neighborhood you choose.
At the same time, there’s been a substantial slowdown in the Las Vegas real estate market, with home prices falling 1.4 percent since November. Still, houses in Las Vegas sell for around $425,000, on par with the national average.
If you’re interested in finding a Las Vegas apartment, popular locations include:
- North Las Vegas
- Summerlin
- Henderson
- Lone Mountain
- Canyon Gate
Phoenix, Arizona
While rent prices soared in Phoenix in recent years, those prices are starting to come down. Rent in Phoenix is currently down more than 12 percent over last year, which is good news for Phoenix renters. Phoenix provides a good selection of cheap apartments, with the average rent for a one-bedroom apartment at $1,366.
The cost to buy a house in Phoenix is also decreasing. Home prices are down nearly five percent in Phoenix, with the average house costing about $430,000.
Before you pack up and move to Phoenix, consider other factors. For example, summers in Phoenix are hot, often well over 100 degrees. During summer, the average electric bill for apartment renters is around $200, which is roughly three percent higher than the national average. However, mild winters could help offset those cooling costs.
Popular neighborhoods in Phoenix for renters include:
- Deer Valley
- Arcadia
- Desert Ridge
- Maryvale
Atlanta, Georgia
According to the Rent Trends Growth Report, rent in Atlanta has “experienced significant deceleration over the past 12 months.” After being up 18 percent year over year, rent growth was barely positive in February.
Still, you can expect to pay about $1,317 for a one-bedroom apartment in Atlanta, which is quite a bit more than some of the other cities on the list.
After several years of climbing rapidly, Atlanta’s real estate prices have slowed quite a bit as well. It’s still an expensive place to buy a house, with the average price hovering around $440,000.
If you’re pondering a move to Atlanta, it is considered one of the best places to find a job, according to Indeed.com. The unemployment rate is just 2.9 percent and the average annual salary is $59,100.
Great Atlanta neighborhoods for renters include:
- Cabbagetown
- East Atlanta
- Avondale Estates
- Medlock Park
Austin, Texas
Rent in Austin is up a bit, roughly 30 percent higher than last year, but prices are expected decline. For now, rent is still on the higher end with a one-bedroom renting for about $1,923.
Home prices have fallen about six percent, with the average home price in Austin roughly $600,000.
While living in Austin is still expensive, it’s less so today than it was a year ago. However, the cost of living in Austin is still much higher than the national average.
That said, Austin has a higher average income that many large cities, with the median household income being $82,472.
If you want to move to Austin, some of the more affordable neighborhoods include:
- North University
- Allandale
- West Campus
- Garrison Park
Dallas, Texas
The average rent for a one-bedroom apartment in Dallas is $1,485, which is slightly higher than last year. However, rent growth is roughly 2.6 percent, which indicates that rent in Dallas is starting to stabilize. Home prices are falling in Dallas, down nearly 10 percent to about $330,000.
If homeownership is your ultimate goal, Dallas might be a good city to explore since houses are more attainable here than in other large cities. In fact, 62.4 percent of Dallas residents own a home, according to the US Census Bureau.
Affordable neighborhoods in Dallas include:
- Cedar Crest
- Far North Dallas
- Deep Ellum
- Pleasant Grove
- Oak Lawn
CITIES WHERE RENT IS GROWING
Now that you know where rents are falling or leveling off, where are they growing?
According to the report, cities in the Midwest saw the largest increases in rent prices, with a few outliers like San Diego and Orlando increasing, as well. These five cities saw some of the largest rent increases:
- Columbus, Ohio (up 38.57%)
- Saint Louis, Missouri (up 9.3%)
- Des Moines, Iowa (up 10%)
- San Diego, California (up 32%)
- Orlando, Florida (up 15.7%)
Ready to make a move? Apartments.com can help you find a great apartment in any city — including ones that won’t break the bank.
