A new study from SmartAsset looked at the rent-to-income ratio in the 50 largest cities and compared the numbers from 2012-2015. Detroit had a good showing in this study, in that renters in Detroit paid on average 5.1% less of their income on rent in 2015 than they did in 2012, representing the largest decrease of any city in the study.
To determine these numbers, “SmartAsset looked at the U.S. Census Bureau’s gross annual median rent data and annual median household income data for 2012 and 2015 for the 50 largest cities.”
Detroit’s rent-to-income ratio was quite high in 2012, at 43.6%. In 2015, it was down to 38.5%, a change of 5.1%
Could these numbers creep up in the future? More jobs have come into downtown Detroit in the past few years, and hopefully, that trend continues throughout the city. Rent prices have increased this year, and with the influx of new rentals hitting the market soon (The Scott at Brush Park, DuCharme Place, Orleans Landing), the overall median rental prices could keep moving up.
The full report from SmartAsset can be read here.
- Big Cities Where Incomes Are Rising Faster Than Rents [Smart Asset]