Rental prices continue to climb across many U.S. housing markets. However, according to a new Zillow real estate report released Thursday, some areas still offer affordable rental options, with units available for under $1,000 per month.
The report showed that although apartments at this price point are rare, they can still be found in parts of the South and Midwest. More than one-third of these budget-friendly listings are concentrated in just 13 metropolitan areas nationwide.
This trend provides a glimmer of hope for renters and potential homeowners who have been priced out of the housing market due to surging costs. Despite a slowdown in home price growth following the sharp pandemic-era spikes, mortgage costs remain more than double what they were in 2019. Meanwhile, typical apartment rents have risen by nearly 40% over the same period — a clear sign of the financial pressure facing both renters and aspiring buyers.
Rising Costs Make Homeownership a Distant Dream for Many Renters
According to Zillow, today’s renters must allocate around 9.5 years of income to save for a 10% down payment on a typical home — the highest ratio since 2019, when it was 7.4%.
Kara Ng, Zillow’s senior economist, noted that both rent and home prices have outpaced income growth, making it increasingly difficult for renters to save for homeownership. She added that relocating to more affordable regions can improve long-term financial stability and help renters build savings toward buying a home in the future.
The report identified the top five U.S. metro areas with the highest share of apartments renting for under $1,000 per month:
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Wichita, Kansas – Ranked first, with about 54% of apartments listed below $1,000.
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McAllen, Texas – A close second, where over 50% of rentals fall under that price range.
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Little Rock, Arkansas – 49% of rentals priced below $1,000.
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Toledo, Ohio – 46% of listings under $1,000.
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Oklahoma City, Oklahoma – 42% of affordable rental listings.
Coastal Cities Struggle with Housing Affordability as South and Midwest Lead in Low-Cost Rentals
By contrast, major coastal markets such as Boston, Miami, Washington D.C., North Port (Florida), and Charleston (South Carolina) offer almost no affordable units. Zillow’s data shows that all these high-cost areas combined have less than 1.8% of apartments available for under $1,000 monthly.
These findings underscore the deepening geographic divide in housing affordability across the United States. For renters seeking relief, the South and Midwest continue to be the most promising destinations for low-cost housing and long-term financial stability.