- The Economist found 30% of the 100 largest U.S. metros were unaffordable for the median earner in 2026, the lowest share since it began tracking three years ago.
- New York remains the costliest market, requiring $153,600 in pre-tax income to afford a median $3,840 studio, while Austin, Houston, Boise, Memphis and Durham became affordable.
- Gains stem largely from heavy new supply, so a shrinking development pipeline could narrow affordability improvements and give landlords more pricing power.
Only 30% of the 100 largest U.S. metros were unaffordable for the median earner in 2026, the lowest share since The Economist began tracking its Carrie Bradshaw index three years ago, according to GlobeSt.
For investors, the shift is less a broad fix to housing costs than a reminder of how local supply conditions drive rents.
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How the Index Works
The index asks whether a renter can afford to live alone in a studio while spending no more than 30% of gross income on housing. It uses Zumper median studio rents and divides the metro’s median wage by the income required.
A score below one means the median earner cannot afford a studio. Nationally, the average renter living alone needed to earn $150 less per month than in 2025.
Where Rents Remain Out of Reach
New York City is the least affordable market. A solo renter would need $153,600 in annual pre-tax income for the median $3,840 studio, and the metro’s median wage was less than half that.
Miami, Jersey City, San Francisco, Boston, Charleston, Fort Lauderdale, Santa Ana, Anaheim and Scottsdale also showed wages well below the required income.
Which Metros Improved Most
The ten most affordable metros were Richmond, Pittsburgh, New Orleans, Sacramento, Plano, Philadelphia, Newark, Madison, Norfolk and Oakland.
From 2023 to 2026, affordability improved most in Oklahoma City, Lexington, Memphis, Augusta, Indianapolis, El Paso, Austin, Durham, Boise and Houston. Memphis, Austin, Durham, Boise and Houston moved from unaffordable to affordable, which lines up with the multifamily fundamentals story of supply easing rent pressure.
Why It Matters
A wide gap between wages and rents can shrink the renter pool, increase pressure for rent regulation and leave properties exposed if job growth weakens. Other markets with the steepest declines in affordability since 2023 included St. Louis, Rochester, Syracuse, Cleveland and Reno.
Payment strain also persists in the middle of the market, as CRE Daily reported on middle-income renter payment stress.
What’s Next
Multifamily deliveries are expected to fall sharply in 2026. A smaller pipeline could absorb excess supply, strengthen landlord pricing power and narrow the gains The Economist identified.
