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s affordability improves for apartment dwellers, renters may delay home purchases due to high mortgage rates and home prices. Multifamily rents have eased, but single-family home rentals are becoming increasingly difficult to find. This trend could impact potential buyers who might decide to stay in their apartments rather than purchasing a home this spring.

    New data from Zillow, Redfin, and Realtor.com shows that rent prices softened at the end of 2024 due to increased apartment supply. According to Redfin, renters need an annual income of $63,680 to afford a typical apartment priced at $1,592/month, a three-year low but still higher than in 2019 and 2020.

    In contrast, single-family rents are rising rapidly, with Zillow reporting a 20% difference between multifamily and single-family rents in December. This disparity is the largest since 2018, and experts predict that single-family rent growth will continue to outpace multifamily rates unless mortgage rates decline.

    With wages growing but home prices and mortgage rates remaining high, fewer people may enter the homebuying market this year, said Redfin Senior Economist Sheharyar Bokhari. However, if single-family rents continue to rise, renters might decide that buying is a more affordable option.

    Texas cities dominate the list of most affordable cities for renters, with Austin leading the way due to its relatively low median rent price and high average renter income. In contrast, East Coast cities like Providence, Miami, and New York have significant affordability gaps, with renter incomes falling short of what's needed to afford a home by 40% or more.