KANSAS CITY, Mo. — Rent prices are skyrocketing across the country, but Kansas City may actually be one of the best places to live if you plan on renting for the near future.
Real estate data company Clever released a new report showing rent prices in the U.S. are rising four-times faster than income.
It feels even worse because some cities experienced rent drop by as much as 20% during the pandemic.
Since home values have skyrocketed, many people are priced out of the housing market. That means they are forced to rent, leading to a lack of rental availability.
Clever said it analyzed publicly available data from the U.S. Department of Housing and Urban Development, the Federal Reserve Bank of St. Louis, and the U.S. Census Bureau to come up with the most affordable cities for renters compared to the average income in each metro.
It determined the median rent price in the Kansas City metro is $978 and earn a median income of $69,240. That means the rent-to-income ratio is 17%. Experts recommend spending less than 30% of gross monthly income on rent.
St. Louis is the most affordable city when it comes to renting with a rent-to-income ratio of 12%, according to Clever’s analysis.
That’s followed by Oklahoma City, Cincinnati, San Antonio, and Raleigh are the only cities on the list that are more affordable than Kansas City for renters.
The city with the highest rent-to-income ratio is San Francisco at 48%.
Clever also discovered another sobering fact. The analysis determined rent price increases have exceeded income increases by 325% since 1985. While income has increased an average of 35% over the past 37-year, rent increased 149% in the same timeframe.
You can read Clever’s entire report to learn more about the U.S. cities with the best, and worst, rent-to-income ratios online.