While rent prices continue to climb across much of the country, one South Texas border city remains of the most affordable. Laredo has been named the most affordable place to rent in Texas, with residents spending a far smaller share of their income on housing than in most major U.S. cities, according to a new WalletHub analysis.
WalletHub analyzed more than 180 cities across the United States to determine how far a person’s rental dollar can go. The site took a look at how average rental costs compared to household income for its ranking of “Cities with the most affordable rent.” In some cities, rent costs as little as 15% of the median annual household income. In others, residents have to fork over more than a third of their take-home pay in order to pay for a place to lay their heads at night. But in Laredo, the cost of rent is only about 19% of the median household income, making the bustling border town the most affordable city in the Lone Star State to rent a place.
So just what makes a city “renter friendly”? According to Andrew Burnstine, an associate professor in the College of Business and Management at Lynn University in Florida, it’s a combination of affordable monthly rental costs, a healthy amount of rental units available on the market, and the overall stability of a local rental market.
“Vacancy rates tell the next part of the story, since anything near 5 percent or lower tends to push rents upward quickly,” Burnstine said.
Burnstine advises renters to take total costs into consideration when deciding where to rent. It’s not just monthly rent payments that tenants have to worry about. It’s also security deposits, utility bills, fees for amenities such as parking or pent rent, and other expenses.
Other affordable Texas cities include Brownsville, Corpus Christi, El Paso and Austin, which has recently seen a glut of available apartments that has driven down rental costs in the capital city. On the flip side, Texas’ largest metros — San Antonio, Dallas and Houston — are the priciest places in the state.
Here’s how every Texas city stacked up on WalletHub’s rental affordability analysis: