The bubble that’s bursting these days might just be the dream many Americans had of buying their first home.
High prices, rising mortgage rates, decreasing home inventory and stiff competition among buyers are making it tougher than ever for hopeful first-time home buyers.
These obstacles are complicating the homeownership dream for nearly 90% of all renters, according to Fortune, and many, especially younger millennials burdened with student debt, are facing the reality of renting forever.
But rents are rising, too. According to Zumper's May data, the median one-bedroom rent in the U.S. is $1,414 and two bedrooms is at $1,758. Zillow (ZG) says typical rent is up 15.9% over last year.
Faced with this reality of cost and renting for the long term—or possibly forever—where is a renter to go?
To find the best cities for renters, RentCafe.com, a nationwide apartment search website, analyzed 115 small, medium and large cities around the U.S. and compared their rents, cost of living, housing, quality of life and other economic data.
They found that small cities, including suburbs of large metros, tend to offer the best life for renters. Many are clustered in southern and southeastern part of the country. What they all have in common is a healthy pace of new apartment construction and a wide selection of amenity-rich properties. The top city is Round Rock, Texas, a small city of about 128,000 just 15 miles outside of Austin, Texas, which is also on this list. Round Rock, an up-and-coming tech center and so-called “sports capital of Texas” scored high in all of the main categories, ranking No. 13 in cost of living, No. 10 in terms of local economy and No. 12 in quality of life.
The study included only cities with at least 10,000 apartment units. The 115 cities were compared across three main categories:
- Cost of living and housing, which also included average apartment size, occupancy and share of new apartments
- Local economy, which includes unemployment rate, education, income and job growth
- Quality of life, which includes the number of apartments in top locations, quality of schools, commuter delays, the natural amenities in the area and air quality.
Based on RentCafe’s study, these are the best cities in the U.S. for renters.
1. Round Rock, Texas
- Population: 128,812
- Cost of living: 94% of U.S. average
- Local economy rank: 10
- Median renter income: $67,740
- Quality of life rank: 12
- Natural amenities: High
- Days with good air quality: 146
2. Raleigh, N.C.
- Population: 469,698
- Cost of living: 96% of U.S. average
- Local economy rank: 12
- Median renter income: $52,871
- Quality of life rank: 9
- Natural amenities: Low
- Days with good air quality: 196
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3. Conroe, Texas
- Population: 88,369
- Cost of living: 93% of U.S. average
- Local economy rank: 36
- Median renter income: $48,871
- Quality of life rank: 24
- Natural amenities: average
- Days with good air quality: 168
4. Greenville, S.C.
- Population: 69,648
- Cost of living: 91% of U.S. average
- Local economy rank: 25
- Median renter income: $46,138
- Quality of life rank: 45
- Natural amenities: above average
- Days with good air quality: 189
Alan Stoddard / Shutterstock
5. Orlando, Fla.
- Population: 284,817
- Cost of living: 97% of U.S. average
- Local economy rank: 17
- Median renter income: $50,679
- Quality of life rank: 21
- Natural amenities: high
- Days with good air quality: 151
6. Jacksonville, Fla.
- Population: 902,488
- Cost of living: 93% of U.S. average
- Local economy rank: 47
- Median renter income: $45,677
- Quality of life rank: 25
- Natural amenities: high
- Days with good air quality: 131
7. Charlotte, N.C.
- Population: 873,570
- Cost of living: 97% of U.S. average
- Local economy rank: 19
- Median renter income: $54,602
- Quality of life rank: 30
- Natural amenities: below average
- Days with good air quality: 187
8. Charleston, S.C.
- Population: 137,041
- Cost of living: 100% of U.S. average
- Local economy rank: 8
- Median renter income: $54,381
- Quality of life rank: 38
- Natural amenities: above average
- Days with good air quality: 228
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9. Atlanta
- Population: 497,642
- Cost of living: 103% of U.S. average
- Local economy rank: 21
- Median renter income: $47,180
- Quality of life rank: 17
- Natural amenities: below average
- Days with good air quality: 182
10. Austin, Texas
- Population: 965,872
- Cost of living: 102% of U.S. average
- Local economy rank: 7
- Median renter income: $61,972
- Quality of life rank: 10
- Natural amenities: Highest
- Days with good air quality: 146
11. Sarasota, Fla.
- Population: 57,787
- Cost of living: 101% of U.S. average
- Local economy rank: 26
- Median renter income: $46,274
- Quality of life rank: 13
- Natural amenities: Highest
- Days with good air quality: 153
12. Savannah, Ga.
- Population: 145,492
- Cost of living: 88% of U.S. average
- Local economy rank: 73
- Median renter income: $39,597
- Quality of life rank: 58
- Natural amenities: above average
- Days with good air quality: 223
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13. Plano, Texas
- Population: 288,870
- Cost of living: 111% of U.S. average
- Local economy rank: 1
- Median renter income: $78,706
- Quality of life rank: 5
- Natural amenities: average
- Days with good air quality: 201
14. Knoxville, Tenn.
- Population: 187,487
- Cost of living: 84% of U.S. average
- Local economy rank: 82
- Median renter income: $33,731
- Quality of life rank: 39
- Natural amenities: average
- Days with good air quality: 201
15. Tampa, Fla.
- Population: 395,912
- Cost of living: 96% of U.S. average
- Local economy rank: 35
- Median renter income: $44,559
- Quality of life rank: 23
- Natural amenities: Highest
- Days with good air quality: 126
16. Columbia, S.C.
- Population: 134,057
- Cost of living: 93% of U.S. average
- Local economy rank: 78
- Median renter income: $33,473
- Quality of life rank: 35
- Natural amenities: average
- Days with good air quality: 191
17. Lincoln, Neb.
- Population: 286,388
- Cost of living: 93% of U.S. average
- Local economy rank: 42
- Median renter income: $42,920
- Quality of life rank: 68
- Natural amenities: Lowest
- Days with good air quality: 189
18. San Antonio, Texas
- Population: 1.5 million
- Cost of living: 94% of U.S. average
- Local economy rank: 62
- Median renter income: $42,941
- Quality of life rank: 28
- Natural amenities: High
- Days with good air quality: 156
19. Houston
- Population: 2.3 million
- Cost of living: 95% of U.S. average
- Local economy rank: 41
- Median renter income: $46,071
- Quality of life rank: 47
- Natural amenities: below average
- Days with good air quality: 120
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20. Fort Worth, Texas
- Population: 892,221
- Cost of living: 96% of U.S. average
- Local economy rank: 38
- Median renter income: $49,272
- Quality of life rank: 43
- Natural amenities: average
- Days with good air quality: 151
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21. Lubbock, Texas
- Population: 257,013
- Cost of living: 93% of U.S. average
- Local economy rank: 65
- Median renter income: $36,642
- Quality of life rank: 72
- Natural amenities: average
- Days with good air quality: 187
22. Columbus, Ohio
- Population: 889,079
- Cost of living: 92% of U.S. average
- Local economy rank: 43
- Median renter income: $46,365
- Quality of life rank: 96
- Natural amenities: Lowest
- Days with good air quality: 189
arthurgphotography / Shutterstock
23. Amarillo, Texas
- Population: 199,225
- Cost of living: 81% of U.S. average
- Local economy rank: 69
- Median renter income: $40,848
- Quality of life rank: 28
- Natural amenities: HIgh
- Days with good air quality: 189
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24. Nashville, Tenn.
- Population: 667,070
- Cost of living: 97% of U.S. average
- Local economy rank: 20
- Median renter income: $50,643
- Quality of life rank: 74
- Natural amenities: average
- Days with good air quality: 123
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25. Huntsville, Ala.
- Population: 199,845
- Cost of living: 90% of U.S. average
- Local economy rank: 55
- Median renter income: $37,193
- Quality of life rank: 95
- Natural amenities: Low
- Days with good air quality: 139
26. Kansas City, Mo.
- Population: 491,158
- Cost of living: 95% of U.S. average
- Local economy rank: 50
- Median renter income: $42,751
- Quality of life rank: 70
- Natural amenities: Low
- Days with good air quality: 173
27. Stamford, Conn.
- Population: 130,057
- Cost of living: 137% of U.S. average
- Local economy rank: 11
- Median renter income: $72,060
- Quality of life rank: 8
- Natural amenities: High
- Days with good air quality: 139
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28. Lafayette, La.
- Population: 126,674
- Cost of living: 91% of U.S. average
- Local economy rank: 54
- Median renter income: $38,483
- Quality of life rank: 59
- Natural amenities: Lowest
- Days with good air quality: 257
29. Fort Lauderdale, Fla.
- Population: 181,818
- Cost of living: 119% of U.S. average
- Local economy rank: 26
- Median renter income: $52,469
- Quality of life rank: 22
- Natural amenities: Highest
- Days with good air quality: 125
30. Chattanooga, Tenn.
- Population: 181,370
- Cost of living: 93% of U.S. average
- Local economy rank: 78
- Median renter income: $38,080
- Quality of life rank: 54
- Natural amenities: average
- Days with good air quality: 182
Check out how all the cities ranked and see the methodology for this study at RentCafe.com.
