ATTOM released their 2024 Rental Affordability Report outlining the top 10 counties with the highest rental rates. Explore the list below for pricing, affordability, market trends, and how these factors are affecting both renters and homebuyers interested in these areas.
1. Collier County, Florida
In 2024, Collier County, Florida has a premium 3-bedroom rental price of $8,000, reflecting a substantial commitment for renters with a rental affordability index of 153%. However, real estate investors should note that buying is more cost-effective than renting in this market, as home prices have been rising faster than rents, indicating potential opportunities for long-term appreciation. The Jan-Nov 2023 home sales prices at $770,000 provide historical context, aiding investors in evaluating the trajectory of property values for informed decision-making.
2. Santa Barbara County, California
Santa Barbara County, California, presents a 3-bedroom rental price of $6,950 in 2024, with an affordability index of 131%, emphasizing the relatively high cost of renting. Real estate investors should take note that, similar to Collier County, buying is more cost-effective in Santa Barbara County, as home prices are rising faster than rents. The report reveals the Jan-Nov 2023 home sales prices were $830,000.
3. Marin County, California
Marin County, California features a 3-bedroom rental price of $6,000 in 2024, offering relative affordability for renters. In contrast to the previous counties, Marin County stands out as a place where renting is a more viable option, as rents have been rising faster than home prices. The Jan-Nov 2023 home sales prices were reported at $1,644,625.
4. Westchester County, New York
Westchester County, New York, within the New York City metropolitan area, presents a 3-bedroom rental price of $5,500 in 2024, with moderate rental affordability at 76%. Real estate investors should note that renting is more favorable in this county, as rents are rising faster than home prices. The report states that Jan-Nov 2023 home sales prices were $809,000.
5. Orange County, California
Orange County, California, famous for its coastal beauty, features a 3-bedroom rental price of $5,450 in 2024, providing relatively better affordability for renters. Real estate investors should take note that renting is favored in this county, as rents are rising faster than home prices. This sought-after coastal region showcased Jan-Nov 2023 home sales prices of $1,192,500.
6. Los Angeles County, California
Los Angeles County, one of the most populous in the United States, presents a 3-bedroom rental price of $5,300 in 2024, offering relatively affordable options for renters compared to some other high-rent counties. Real estate investors should consider that renting is favored in this county, as rents are rising faster than home prices. The report revealed that the Jan-Nov 2023 home sales prices in this populous county were $880,000.
7. Monterey County, California
Monterey County, renowned for its stunning coastline and natural beauty, features a 3-bedroom rental price of $5,145 in 2024 with a favorable rental affordability at 107%. Real estate investors should consider renting as a viable option in this county, given its relatively good affordability, especially as rents have been rising faster than home prices. In Jan-Nov 2023, home sales prices in this California county averaged $830,000.
8. San Mateo County, California
San Mateo County, situated in the tech-centric San Francisco Bay Area, features a 3-bedroom rental price of $5,000 in 2024. Although rental affordability is lower, real estate investors should recognize renting as a viable choice, given the faster-rising rents compared to home prices. The Jan-Nov 2023 home sales prices at $1,780,000 highlight the county’s high-end market and its notable presence in the tech industry.
9. San Francisco County, California
San Francisco County, showcases 3-bedroom rentals priced at $4,990 in 2024. Despite a challenging rental affordability at 37%, real estate investors should consider renting as a favored option due to rents rising faster than home prices. The county’s job growing market makes it an appealing location for those interested in new career options, as reflected in the competitive housing market with a median home sales price of $1.5 million in early 2023.
10. Riverside County, California
Riverside County, California, features a 3-bedroom rental price of $4,800 in 2024 with a favorable rental affordability at 101%. Real estate investors should note that, despite its apparent affordability, buying is preferred in Riverside County due to faster-rising rents compared to home prices. The county’s accelerated wage growth further enhances its appeal, making it a compelling choice for potential homebuyers seeking investment opportunities in this dynamic California market. In Jan-Nov 2023, home sales prices averaged $586,000.
Source: ATTOM: Top 10 Counties with the Highest Rental Rates in 2024. Read the full article here.