Buying a Home

Rental Affordability Fell in 82% of U.S. Metros, MBA Research Finds

A new MBA RIHA study finds renters lost the equivalent of $256 a year in income on average, and that up to half of rising rent spending reflects better housing.

By Shivam Kaushik · Updated November 5, 2026 · 5 min read

Modern apartment building with many balconies and large windows

Add Keys & Coffee as a preferred source on Google

Quick answers

The study: a report from the Mortgage Bankers Association’s Research Institute for Housing America (RIHA), released November 3, 2026, found rental affordability fell in 232 of 282 U.S. metro areas (82%) between 2014 and 2023.
The cost: on average, the decline was like losing $256 of income a year per renter household, after adjusting for housing quality.
The twist: as much as half of the rise in rent spending was linked to better housing, not just higher prices.
Range: Mount Vernon-Anacortes, WA, had the biggest decline (about $1,212 a year); Mankato, MN, improved the most (about $964 a year).

Ask any renter if rent has gotten more expensive and you’ll get an eye roll. A new study agrees, mostly, but adds an interesting wrinkle: part of what renters pay more for is a nicer place. The report, Housing Demand and the Decline in Rental Housing Affordability by Syracuse University economist Gary Engelhardt, tries to separate “paying more for the same thing” from “paying more for something better.” Here’s what it found and what it means if you’re deciding whether to keep renting or start shopping for a mortgage.

What the study measured

Most affordability headlines use simple ratios, like rent as a share of income or the percentage of renters spending more than 30% of income on housing. Those are useful, but they can’t tell whether rent went up because the same apartment got pricier or because renters moved into bigger, newer or better-equipped homes.

Using American Community Survey data from 2014 to 2023, the study built a new metro-level index that adjusts for housing quality and size, separates supply and demand forces, and accounts for how much housing people choose as their incomes change.

The key findings

Finding	Number
Metros where rental affordability declined	232 of 282 (82%)
Metros where it improved	50
Average annual loss per renter household	about $256
Share of rent-spending growth tied to quality	up to about half
Largest decline: Mount Vernon-Anacortes, WA	about $1,212 a year
Largest improvement: Mankato, MN	about $964 a year

Source: MBA Research Institute for Housing America (Nov 3, 2026). Losses were generally larger in coastal and major metro areas.

Myth buster“If rent spending doubled, affordability got twice as bad.” Not according to this study. If you moved from a dated one-bedroom to a newer two-bedroom with in-unit laundry, you’re spending more, but you’re also getting more. The researchers argue traditional measures can overstate the problem because they miss that difference. That doesn’t mean rent is cheap; it means the story is more complicated.

Put $256 a year in perspective

$256 a year works out to about $21 a month on average. That sounds small, but it’s an average across hundreds of metros. In the hardest-hit area, the loss of about $1,212 a year is roughly $101 a month. And this measure is adjusted for quality, so it’s the “pure” squeeze after giving credit for nicer housing.

Rent or buy right now?

The study covers renters through 2023, but plenty of renters today are asking the next question: should I buy instead? With the 30-year fixed rate averaging 7.18% in Freddie Mac’s November 5 survey, owning is expensive too.

ExampleTaylor rents for $1,900 a month and is eyeing a $415,000 home, the national median list price in Realtor.com’s October report. With 10% down, principal and interest at 7.18% come to about $2,530 a month. Add property taxes, homeowners insurance and mortgage insurance, and the true monthly cost could easily top $3,000, plus maintenance. Owning still builds equity, but Taylor needs to compare the full monthly cost, not just the loan payment.

Try your own numbers in the rent vs. buy calculator, then check what price range fits with the home affordability calculator.

Fun factThe study covers 282 metro areas, which is far more than the “top 50” lists most rent reports use. That’s why smaller places like Mankato and Mount Vernon-Anacortes show up at the extremes.

Smart moves for renters who want to buy

Build the down payment in stages. Check whether you qualify for down payment assistance where you live.
Protect your credit. On-time rent may help with some newer credit scoring models; our credit score guide explains what lenders look at.
Consider low-down-payment loans. FHA loans allow as little as 3.5% down with a qualifying score; read the FHA requirements.
Use the slow market. Homes are sitting longer this fall, which can mean room to negotiate. Start with the first-time home buyer checklist.

What to watch next

Nov 6: October jobs report, a key driver of wage growth and rates.
Nov 10: October CPI. Shelter costs (rent and owners’ equivalent rent) are the largest piece of core inflation.
Thursdays: Freddie Mac’s weekly mortgage rate survey; see our mortgage rate forecast for the outlook.

FAQ

Has rent become less affordable?

In most places, yes. The MBA RIHA study found rental affordability declined in 82% of U.S. metro areas between 2014 and 2023.

Why does housing quality matter for affordability?

If renters pay more because they’re getting bigger or better homes, that’s not the same as paying more for the same home. The study found up to half of rising rent spending was tied to quality.

Which metro became the least affordable for renters?

Mount Vernon-Anacortes, Washington, saw the largest decline, equal to about $1,212 in lost income per renter household per year.

Is it cheaper to rent or buy right now?

It depends on local rents, prices and how long you’ll stay. At rates above 7%, renting is often cheaper month to month, while buying builds equity over time.

Sources: Mortgage Bankers Association, Research Institute for Housing America, “Housing Demand and the Decline in Rental Housing Affordability” (Nov 3, 2026); Freddie Mac Primary Mortgage Market Survey (Nov 5, 2026); Realtor.com October 2026 Monthly Housing Report; U.S. Bureau of Labor Statistics release schedule. Payment examples computed by Keys & Coffee. This article is general education, not financial advice. Keys & Coffee is not a lender.

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

Follow on Google Instagram Add Keys & Coffee on Google

Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.