WalletHub released a report on “Best and Worst Cities for Renting in the United States” on July 8, dividing 182 cities into categories based on 21 key indicators such as “Rental Market & Affordability” and “Quality of Life.” The assessment covered 150 of the most populous cities in the U.S. and at least 2 most populous cities from each state.
In California, both northern and southern regions had 14 cities evaluated. Fremont in Northern California was rated as the most suitable city for renting, followed by Irvine, Huntington Beach, San Francisco, San Diego, and Garden Grove.
According to the National Multifamily Housing Council, approximately 46 million households in the U.S. choose to rent rather than buy for convenience, cost, or a combination of both reasons, with a majority living in single-family homes or apartments with five or more units. However, renting is not always cheaper or better than buying as prices vary by state, city, and region.
Chip Lupo, an analyst at WalletHub, stated, “In cities most suitable for renting, rent typically accounts for only around 15% of income. You can also benefit from robust rental laws, such as deposit limits of 1-2 months’ rent. We also considered factors like city transportation, job market, leisure activities, and pest control in terms of quality of life to ensure you have a good living experience rather than just affordable housing.”
WalletHub, founded in 2013 and headquartered in Miami, is a personal finance company offering free tools to customers, including credit reports, scores and monitoring, as well as comparison tools for credit cards, car insurance, and banking services.
Among the top cities most suitable for renting in the U.S., Overland Park in Kansas ranked first, followed by Scottsdale and Chandler in Arizona.
Overland Park scored 66.93 overall, ranking sixth in the “Rental Market & Affordability” category and seventh for “Quality of Life.” The city boasts the largest average residential area in the U.S. at 2,809 square feet, with around 17% of annual income spent on rent, ranking eighth in rent affordability. Only 18% of households spend half or more of their income on housing, and landlords can only collect up to two months’ rent as a deposit.
Scottsdale ranked second with a total score of 65.97, placing 24th in “Rental Market & Affordability” and first in “Quality of Life.” The city excels in job opportunities and driving environment, ranking first in both categories. With a pleasant climate and diverse recreational activities, it ranks fourth and sixth respectively, with an average residential area of 2,331 square feet and most people spending around 21% of their annual income on rent.
Chandler ranked third with a total score of 65.75, placing 12th in “Rental Market & Affordability” and fourth in “Quality of Life.” The city features an average residential area of 1,909 square feet, with over 16% of residences built between 2010 and 2023. Most people spend only 21% of their annual income on rent, with approximately 18% of households allocating half or more of their income to housing expenses. Landlords can only demand a maximum of two months’ rent as a deposit.
The cities ranking from fourth to tenth are Gilbert, Arizona; Bismarck, North Dakota; Sioux Falls, South Dakota; Huntsville, Alabama; Peoria, Arizona; Lewiston, Maine; and Nashua, New Hampshire.
The bottom three cities in the U.S. for renting are Memphis, Tennessee; Detroit, Michigan; and Cleveland, Ohio.
In California, cities excelled in the “Quality of Life” category with a score of 40 out of 100 compared to the “Rental Market & Affordability” category with a score of 60. Three out of the top six most suitable cities for renting in Southern California are in Orange County: Irvine, Huntington Beach, and Garden Grove, providing a higher quality of life.
Indicators for “Rental Market & Affordability” include average residential area, proportion of new houses, rental vacancy rate, rent affordability, insurance costs, rent-to-price ratio, and historical rent price changes; while “Quality of Life” indicators include life satisfaction, job market, driving environment, recreational diversity, public schools, climate, safety, and pest control.
Fremont in Alameda County in Northern California ranked 25th overall with a score of 55.17, placing 62nd in “Rental Market & Affordability” and 35th in “Quality of Life”.
In Irvine, the top city for renting in Southern California, it ranked 26th overall with a score of 54.98, ranking 110th in “Rental Market & Affordability” and 14th in “Quality of Life”. Huntington Beach was placed 35th overall with a score of 53.13, ranking 128th in “Rental Market & Affordability” and 8th in “Quality of Life”.
San Francisco was the fourth best city in California, ranking 43rd overall with a score of 52.61, placing 39th in “Rental Market & Affordability” and 73rd in “Quality of Life”. San Diego followed as the fifth best city, ranking 63rd overall with a score of 49.74, standing at 153rd in “Rental Market & Affordability” and 16th in “Quality of Life”. Garden Grove ranked sixth overall, with a score of 49.04, placing 9th in “Quality of Life” but 160th in “Rental Market & Affordability”.
Furthermore, Los Angeles ranked 141st overall with a score of 42.56, placing 167th in “Rental Market & Affordability” and 70th in “Quality of Life”. San Bernardino ranked 174th overall with a score of 35.72, ranking last among California cities, with a 178th position in “Rental Market & Affordability” and 122nd in “Quality of Life”.