California nabbed the top five spots for least affordable metro areas for renters who want to switch to homeownership—a ranking that does not come as much of a surprise. But it is slim pickings in the rest of the country as well: The top five cities with the highest percentage of homes affordable to the typical renter are also the only cities where renters could afford half of the homes on the market, according to a 2019 report by Redfin that analyzed the top 50 metro areas. See where your city ranks.
The typical renter household could afford half of the homes in only five of the nation’s largest markets in 2019, according to an analysis by Redfin.
To determine the share of homes sold that would be affordable to renters, Redfin took the median household income for renters and then calculated the maximum home price that resulted in a mortgage payment of 30% or less of the renter’s monthly income, assuming a 5% down payment and the average 30-year fixed-rate mortgage interest rate from four weeks prior to each home sale.
The five markets with the highest percentage of homes affordable to the typical renter were Oklahoma City (58.5%), Buffalo (56.5%), Rochester (55.9%), Cleveland (51.2%) and Cincinnati (50.1%). These were the only markets with at least half of homes affordable to renters.
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