Three Texas metroplexes were rated as the “most affordable” areas in the entire country.
A recent report from the virtual real estate company Redfin found that the Austin, Houston, and Dallas-Fort Worth metroplexes are the three most “affordable” areas in the United States.
The study determined that the Austin Metroplex is the “most affordable” in the country. Renters earn a median salary of $69,781, which is 25.14% more than the $55,760 needed to live in the area.
One of the most impressive aspects of this ranking is that rental affordability improved the most in Austin in 2024.
Required income in Austin fell from $66,600 to $55,760 in 2024, a decrease of 16.3% to lead all U.S. metroplexes.
Houston was the second “most affordable” metroplex in the United States, with renters’ median household incomes of $58,287.
Renters in Houston would only need to make $49,560 per year to have the rental unit be considered “affordable,” marking a 17.61% difference in the median and required income to make the metroplex the second “most affordable” in the country.
Finally, the country’s third “most affordable” metroplex was the Dallas-Fort Worth Metroplex, in which renters have a median income of $64,417 and only need an income of $58,400.
As a result, there is a 10.30% difference between the actual median income and the required income for “affordable” rental units.
Redfin Senior Economist Sheharyar Bokhari said he is optimistic that conditions will continue to improve due to increased supply, though rentals are becoming even more popular than in the past.
“Rental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom in apartment construction,” he said in the report.
“The affordability gap between renting and buying is likely to widen further in 2025, as home prices rise and mortgage rates remain high. That means potential homebuyers—especially from younger generations—may decide to continue renting for longer, as it’s the only affordable option.”
Redfin determined the results of this study using data from the “median U.S. apartment asking rents for the three months ending December 31, 2024, and estimated median incomes for renter households.”
In this study, a rental unit was considered “affordable” if the renter spent no more than 30% of their income on rent.