A national rental study just handed Austin, Houston and Dallas the crown for renter affordability, although plenty of Texans are looking at their monthly bills and wondering what planet those numbers came from. A new Redfin analysis says the three metros are the best big cities in the country for renters, judged by a simple rule of thumb: the median asking rent should not eat up more than 30% of the local median renter household income. Local housing researchers and renters, especially in parts of Houston, say that on-the-ground reality feels a lot harsher than the averages suggest.
According to Redfin, Austin topped the major-metro list with a median asking rent of $1,394 and an estimated median renter income of $69,781. Houston landed in second place with a median rent of $1,239 and an estimated median renter income of $58,287. Dallas ranked third with a median rent of $1,460 and an estimated median renter income of $64,417. Nationally, Redfin found the typical U.S. renter still falls short of the income needed to afford the median apartment by roughly $8,900. The company based its analysis on median asking rents for the three months ending Dec. 31, 2024, paired with estimated 2024 renter incomes.
Local data shows a different picture
Zoom in on Houston and the story starts to change. Rice University’s Kinder Institute unveiled a State of Housing dashboard in mid-June that, as reported by Community Impact, tracks rising cost burdens neighborhood by neighborhood across Harris County. The dashboard and related research show a majority of county renters now spend more than 30% of their income on housing, despite that 30% threshold being the standard affordability benchmark. Kinder Institute research scientist Stephen Averill Sherman told reporters that incomes in Harris County have not kept up with inflation, a mismatch that complicates the glowing affordability narrative for renters living paycheck to paycheck.
On the ground in Houston
In Houston’s Sawyer Heights neighborhood, renters told Spectrum News that the rankings do not match what they feel in their wallets. "It's not cheap to live in this city, especially with income the way it is," one renter said. Another added that nicer, safer options often come with a much higher price tag. Even so, the narrow rent-versus-income yardstick Redfin used still places Austin, Houston and Dallas near the top of the national affordability list, a result that sits uneasily next to the more uneven, block-by-block realities local data and renters describe.
What to watch next
Economists say the big variables to watch are wage growth and whether new apartment construction can keep up with demand, since local forecasts suggest rent increases could return if supply slows down. For a deeper dive into how Texas rents stack up and for earlier coverage of these rankings, see the Houston Chronicle. For context on last year’s similar findings, check out Houston’s second-most-affordable status.
