In an analysis by Point2Homes, the top 75 largest metro areas in the United States have been evaluated using 25 key indicators to determine the best places for renting a house, whether it be a single-family rental (SFR) or a build-to-rent (BTR) property. The study aimed to identify locations that offer stability and comfort for renters.
Richmond, Virginia, and Raleigh, North Carolina, emerged as the top two locations, scoring 63.41 and 63.15 out of 100, respectively. These cities excel in providing the essential qualities that renters seek. Following closely behind were Salt Lake City, Utah, with a score of 62.93; Boise, Idaho, at 61.68; Honolulu, Hawaii, at 61.07; Allentown, Pennsylvania, at 60.99; Pittsburgh, Pennsylvania, at 60.59; Virginia Beach, Virginia, at 59.92; Hartford, Connecticut, at 59.60; and Omaha, Nebraska, at 59.33.
The East Coast was particularly notable, with five of the top 10 locations situated there, including a sixth in Pennsylvania. Additionally, Omaha and St. Louis stood out as economic leaders, boasting lower renters' insurance and unemployment rates. In these cities, more than half of single-family households can comfortably afford housing costs.
While California's largest metro regions did not secure top rankings, Oxnard was highlighted for its exceptional overall quality of life. According to Census data cited by Point2Homes, the number of SFR households has increased by 31% over the past 20 years, and there is a significant surge in BTR assets. Currently, nearly a third of renter households reside in single-family homes. Furthermore, a separate study by Point2Homes found that renters are now staying in the same property for 10 years or more.
The growing reliance on rentals is driven by a combination of factors, including high house prices, limited property supply, elevated mortgage rates, and the realization that moving often results in higher rents elsewhere. Many potential buyers are unable to save for a down payment due to these conditions.
Point2Homes divided its metrics into two categories: economy and housing, as well as community and quality of life. The economic indicators included average SFR household income, cost of living, unemployment rates, job growth, and the percentage of renting households that can afford housing costs comfortably. Community and quality of life metrics encompassed safety rates, commute times, air quality, educational quality, walk-ability, and access to recreational facilities.