Rent-burdened metros — those in which rent-to-income ratios exceed 30% — are showing some signs of cooling, according to a new analysis from Moody's Analytics.
Four pricey metros classified as rent burdened by Moody's posted rent-to-income ratio declines in the third quarter, led by Northern New Jersey (-46 bps), Los Angeles (-33 bps), Miami (-26 bps), and Palm Beach (-19 bps). Northern New Jersey was also the only metro on Moody's list of top rent-burdened regions to post a rent decline (-0.7%). Income growth outpaced rent growth in the other three cities.
Meanwhile, New York and Boston — two other metros on the rent-burdened list — each showed an increase of more than 100 basis points in rent burdening for median household. New York rents grew by nearly 20% year over year, while Boston is at 17%.
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