A high rent-to-income ratio and and a 9 percent rental vacancy rate makes Austin, improbably, the best market for renters right now. Austin took the top spot in Realtor.com's latest Top 10 Markets for Renters report, which found cities in the South and Midwest rank highest for their rental affordability, rental availability, economic growth, and shorter than average commute times.
The city's overall 19.7 percent rent-to-income ratio and and 9 percent rental vacancy rate propelled it to first place, just above Oklahoma City in second and Birmingham, Alabama, San Antonio, and Minneapolis, Minnesota following in descending order.
All of the leading cities are experiencing economic growth and attracting young professionals, according to the report. Austin was also named a top rental markets for 2024 college graduates.
"Over the last year, we continued to see strong demand for rental properties, especially among younger generations prioritizing the benefits of renting, like flexibility and relative affordability, while home prices and mortgage rates remain high," said Realtor.com's Danielle Hale. "Despite high demand, there are some bright spots in the rental market around the U.S. in cities and towns that offer renters good job opportunities, a decent commute, flexible lease terms, maintenance free amenities, and more rental options to choose from at relatively affordable prices."
Among the top 10 markets, the rent-to-income ratio ranged from a low of 17.7 percent, seen in Oklahoma City, to 23.8 percent in Nashville, Tennessee.
The top markets as a group are located in metro areas that have an average rental vacancy rate of 8.8 percent, surpassing both the town/city average of 6.4 percent and the metro average of 6.9 percent.
Among the top 10 markets, the rental vacancy rate ranges from 5.2 percent to 12.3 percent. Birmingham (12.3 percent), boasts the highest rental vacancy rate and Norfolk, Virginia (5.2 percent) has the lowest rate. Additionally, cities in Southern metros such as Nashville (9.2 percent) and Austin (9 percent) both rank prominently for rental availability. One explanation for the higher vacancy rates in the top markets could be the surge in multifamily construction in the South and Midwest, which increased the overall rental inventory, according to the report.
