Renters these days are blown away by the Windy City. Chicago is the most popular market for rental housing in the United States, according to a new

This is the country’s most popular rental market

This is the country’s most popular rental market

This is the country’s most popular rental market

This is the country’s most popular rental market

This is the country’s most popular rental market
This is the country’s most popular rental market
  • 2019-04-24 19:10:02 3 months ago
  • views: 12,095
  • By: marketwatch.com
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Renters these days are blown away by the Windy City.

Chicago is the most popular market for rental housing in the United States, according to a new report from Zillow ZG, -1.97% subsidiary HotPads. ZG, -1.97% To produce its analysis, HotPads ranked the 50 largest metro areas based on what share of rental searches were from locals and how commonly they ranked as a top search destination for renters looking to relocate.

In Chicago, 86% of the searches for home and apartment rentals were performed by locals. It’s also a hot spot for renters looking to relocate. Along with Los Angeles, Chicago was among the most-search markets in 44 of the country’s 50 largest metro areas — more than any other city.

A couple of factors likely make Chicago an attractive destination in renters’ eyes. As the third-largest city in the country by population, Chicago is a major jobs market. And while the median rent there ($1,790) is higher than the national median rent ($1,535), residents only spend 28.1% of their income on rent. That’s below the oft-cited recommendation of spending no more than a third of your income on housing.

Read more: Why you may want to think twice before buying a home in the exurbs

Of course, Chicago’s popularity could work against renters. “More new residents typically increase demand for housing, which in turn can make the market more competitive,” Joshua Clark, economist at HotPads, said in the report. “Those looking to relocate can benefit from making a decision sooner rather than later – if these areas don’t keep up with increased demand, rent prices could rise even faster.”

Meanwhile among current Chicago renters looking to relocate, Los Angeles was the most commonly searched destination. That’s not surprising, given that Los Angeles ranked as the second most sough-after rental market nationwide.

Unlike Chicago, Los Angeles is a very expensive place to live. The median rent there ($2,965) is nearly double the national median. Overall, renters there devote 45.7% of their income to rent on average.

Here’s how the rest of the Top 10 stacked up:

Metropolitan Area Median rent Share of local rental searches Out-of-area
search score
Percentage of income spent on rent Most popular search destination
Chicago, Ill. $1,790 86.00% 44 28.10% Los Angeles
Los Angeles-Long Beach-Anaheim, Calif. $2,965 83.00% 44 45.70% Riverside, Calif.
Atlanta, Ga, $1,490 74.80% 22 25.20% Los Angeles
Seattle, Wash. $2,255 76.20% 18 30.90% Los Angeles
Denver, Colo. $2,125 72.10% 18 31.10% Boulder, Colo.
Philadelphia, Pa. $1,690 82.10% 17 26.70% New York City
San Diego, Calif. $2,740 78.60% 16 38.80% Los Angeles
Tampa, Fla. $1,490 75.90% 16 31.40% Orlando, Fla.
Phoenix, Ariz. $1,520 74.80% 13 26.20% Los Angeles
Miami-Fort Lauderdale, Fla. $2,035 77.20% 11 40.20% Orlando

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This is the country’s most popular rental market

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