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Waller, Weeks and Johnson Rental Index

While rents have cooled in some metro areas around the country lately, affordable rent remains an issue in many parts of the country with minimal relief thus far.

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Interactive Chart

To help illustrate how rental markets around the country are evolving, the interactive tool below tracks rental markets in the country’s 100 largest metropolitan areas. Historical leasing data from ZORI (Zillow Observed Rental Index) including single family, condos, and multifamily residences are employed to statistically model the rental trend (where rents should be) for each market. A Premium (+) or Discount (-) is estimated each month as the percentage difference between current observed ZORI rents and statistically estimated rents for the metro-market in question. Actual average market rent, statistically predicted rent, month-over-month change in rent, and year-over-year change in rent for each of the nation’s 100 largest metros are provided as well.

The continuing high cost of rent brings into play the question of affordable housing. To provide readers with a feel for how affordable a rental market is, we add a column for “Rent Constrained.” We define “Rent Constrained” as dedicating 30% or more of a household’s annual income to rent. This measure is similar to HUD’s definition of Rent Burdened but exclusive of utilities. Households falling into this category, similar to Rent Burdened, could encounter difficulty developing savings and may have trouble paying for such items as food, clothing, transportation, and medical care.

The Rent Constrained column displays the minimum annual household income needed in each measured market to avoid being defined as “Rent Constrained.” Annual household incomes below the displayed amount for a given metro are “Rent Constrained” while annual incomes at and above the displayed amount are not. This is a clear housing affordability measure allowing households in measured metros to determine their individual status.

This ongoing, monthly reported project is co-produced by the Ole Miss Real Estate Initiative, Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University and the Alabama Center of Real Estate at the University of Alabama.

Note: Columns of data are sortable to allow for interactive investigations by viewers of the index and create more informed rental decision making on the part of tenants, landlords, developers, real estate professionals, and policy makers.