When it comes to finding the perfect location for a rental property, WalletHub’s July 7 report gives the thumbs-up to Arizona, whose cities of Scottsdale, Gilbert, and Chandler took the top three spots. In total, eight Arizona locations ranked among the top 25 cities as the country’s best bets for rentals.
Analyzing more than 180 top rental markets, WalletHub based its ranking on 21 key measures, including affordability, insurance, vacancy rates, square footage, cost of living, quality of life, job market, recreation, weather, and quality of schools.
“In the best cities for renters, rent can cost you as little as around 15% of your income. You’ll also have access to robust laws that protect renters, such as limiting deposits to only a month or two of rent,” WalletHub analyst Chip Lupo said in the report.
“Our study also considers quality-of-life factors such as a city’s traffic congestion, job market or recreation options to make sure you can get a good living experience, not just inexpensive housing.”
Ranked first in the nation, Scottsdale was found to offer the best quality of life, an abundance of jobs, great weather, a friendly driving environment, and lots of recreational facilities.
However, Scottsdale is not an inexpensive city in which to rent an apartment. According to RentCafe, the city had an average rent of $2,093 as of July 2, well above the national average of $1,750. RentCafe reported that studio apartments there averaged $1,480, while one-bedroom apartments averaged $1,828.
WalletHub data show that most people opting to rent in Scottsdale spend under 22 percent of their annual income on rent.
Second-place Gilbert carries an average monthly rent of $1,762, while renters in third-place Chandler will pay about $1,710.
According to WalletHub, Gilbert apartments offer some of the largest square footage in the nation at 2,101 square feet overall. Renters there spend nearly 21 percent of their annual salaries on rent. Gilbert also ranked high for people who plan to start families, as its school system received high ratings.
Renters in Chandler also spend close to 21 percent of their income on rent, which includes an abundance of new homes, as well as apartments.
Just as with housing prices, rental rates can vary significantly by city, region or state, Lupo noted. In some areas, renting is more cost-effective than buying. Currently, he added, some 46 million U.S. households are renting rather than buying due to cost, availability, or convenience.
“The right road to take depends on a variety of factors, including an individual’s or family’s financial means and how well the local real-estate market is doing,” the report states.
Overland Park, Kansas, and Columbia, Maryland, ranked fourth and fifth on the list, and Bismarck, North Dakota, as well as Sioux Falls, South Dakota, were listed among the nation’s top 10 cities for renters.
Four Texas cities—Amarillo, Plano, Austin, and El Paso—also joined the top 25 list.
“Value is not just about the lowest monthly rent; it is about the total cost of occupancy over your lease term,” Andrew Burnstine, associate professor at Florida’s Lynn University, said in the report. “Savvy renters look for concessions, such as one month of free rent or waived application fees, which landlords are increasingly using to attract tenants in slower markets.”
Some of the nation’s largest cities fell toward the bottom of the list, with Philadelphia at 171, Boston at 185, Los Angeles at 130, and New York City at 106.
Sitting at rock bottom at 182 is Detroit, followed by Cleveland, Ohio; Jackson, Mississippi, and Memphis, Tennessee. Akron, Ohio, placed at 178 on the list.
Jeanette Landin, professor at Landmark College in Vermont, suggested in the report that local authorities can work to make rentals more affordable by constructing new apartments or legalizing accessory dwelling units, which let homeowners create detached units on their property and rent them.
“Local policymakers could expand the availability of housing vouchers, which make housing accessible to low-income renters,” she added. “While many municipalities already have housing trusts, these trusts need to be expanded to provide more stable housing for those who need it.”
