U.S. Cities Where Living Alone Remains Affordable Shrink as Rents Rise
The number of U.S. cities where the average worker can afford to live alone in a studio apartment continues to decline, according to the latest analysis released today.
The report, which calculates affordability based on spending no more than 30% of gross income on rent, found that 41 cities are now considered unaffordable, up from 38 last year. The analysis, inspired by the financial realities faced by the character Carrie Bradshaw in “Sex and the City,” uses rental data from Zumper to determine the income needed for a typical studio. A “Bradshaw score” above one indicates affordability. Rising housing costs are impacting financial independence for many Americans, particularly those starting their careers or choosing to live independently.
Cities in Texas, including Dallas, Houston, and Austin, have seen a significant shift toward unaffordability, driven by an influx of new residents. “There are loads of factors at work here…rental markets can be quite random, but they can fluctuate a lot in a very short space of time,” explained a data researcher. “It’s pretty well documented that Texas has seen this influx of middle-class workers, and that would drive rent up.” Currently, Wichita, Kansas, ranks as the most affordable city, with a Bradshaw score of 1.75, meaning median wages exceed the cost of a studio by 75%. The average studio in Wichita rents for $580 per month, requiring an annual income of $26,400 – significantly less than the city’s median wage. You can find more information about the cost of living in different cities at NerdWallet’s cost of living calculator.
Rounding out the top ten most affordable cities are Baton Rouge, Louisiana; Lincoln, Nebraska; Des Moines, Iowa; Akron, Ohio; Tucson, Arizona; Tulsa, Oklahoma; St. Louis, Missouri; Albuquerque, New Mexico; and Aurora, Colorado. Understanding these trends is crucial for individuals considering relocation or those seeking to maintain financial stability in an increasingly expensive housing market; for more on personal finance, see Investopedia.
Researchers anticipate continued fluctuations in rental markets and will release updated affordability rankings next year.
