About 46 million American households are renting rather than buying their homes because of convenience, cost, or availability. But renting isn’t always a cheaper or better alternative to owning a property.
The right road to take depends on a variety of factors, including an individual’s or family’s finances and how well the local real estate market is doing. Like home prices, rental rates can vary significantly by region, state, or city. In some cases, renting will prove to be more cost-effective and a better overall value than owning.
To determine where renting is better for renters, WalletHub, a personal finance website, compared more than 180 rental markets based on 21 key measures of rental attractiveness and quality of life. Its data set ranges from the difference between rental rates and mortgage payments to rental affordability, the cost of living, and job availability.
| Best Cities for Renters | Worst Cities for Renters | |
| 1. Scottsdale, Ariz. | 173. Shreveport, La. | |
| 2. Gilbert, Ariz. | 174. Huntington, W.V. | |
| 3. Chandler, Ariz. | 175. Augusta, Ga. | |
| 4. Overland Park, Kan. | 176. New Orleans, La. | |
| 5. Columbia, Md. | 177. Newark, N.J. | |
| 6. Peoria, Ariz. | 178. Akron, Ohio | |
| 7. Bismarck, N.D. | 179. Memphis, Tenn. | |
| 8. Huntsville, Ala. | 180. Jackson, Miss. | |
| 9. Sioux Falls, S.D. | 181. Cleveland, Ohio | |
| 10. Amarillo, Texas | 182. Detroit, Mich. |
“In the best cities for renters, rent can cost you as little as around 15% of your income,” Chip Lupo, WalletHub analyst, said in a statement. “You’ll also have access to robust laws that protect renters, such as limiting deposits to only a month or two of rent.
The WalletHub study also considered quality-of-life factors such as a city’s traffic congestion, job market, or recreation options to make sure people can get a good living experience, not just inexpensive housing.
Scottsdale, Ariz., is the best place to rent, according to the WalletHub study, in large part due to the quality of life in the city. It ranks as the best city for both the availability of jobs and the driving environment, which includes traffic and infrastructure quality.
In addition, Arizona has state-level laws addressing bedbug infestations in rental properties, which further protects renters in Scottsdale.
On what local policy makers can do to make housing more affordable for renters, Andrew Burnstine, Ph.D., associate professor at Lynn University, said the magic formula for policymakers is “missing middle” housing, which allows cities to grow in density without turning every quiet street into a skyscraper zone.
“By permitting duplexes, townhomes, and accessory dwelling units, cities can increase supply and lower costs for renters while maintaining the visual character that existing homeowners value,” Burnstine said.
Scott Thorne, Ph.D., instructor at Southeast Missouri State University, said easing restrictions on the construction of multifamily housing in areas traditionally zoned for single-family homes would help, as would streamlining the permitting process.
“Encouraging a mix of single-family and multifamily properties can increase housing availability,” Thorne said. “In addition, investing in infrastructure that supports residential communities, such as parks and recreational areas, can improve livability while accommodating growth.”
