03:31 PM EST, 01/22/2025 (MT Newswires) -- The income required to afford asking rents for a US apartment fell to the lowest level since March 2022, with affordability seen improving further in 2025, a Redfin (RDFN) report showed Wednesday.

Renters needed to earn $63,680 to afford the median asking rent of $1,592 in December. That required earnings level reflects a 0.4% drop from a year earlier and a 6.4% decrease from August 2022 when rents hit a record high of $1,700, according to the real estate brokerage.

In December, renters in 15 of the 44 major US metropolitan markets analyzed by the brokerage earned more than what is needed to afford the median rent, up from seven metros a year earlier.

Texas metros Austin, Houston and Dallas emerged as the most affordable for renters, while Providence, Rhode Island, Miami and New York were the least affordable. Redfin considers an apartment affordable if a renter spends no more than 30% of their income on rent.

The median income for a renter last year was estimated at $54,752, up 5.3% from 2023, but still 14% less than the income needed to afford the monthly apartment rent. Redfin said the gap between how much renters earn and the income they need to keep rent affordable is narrowing, with December's difference being the smallest in the five years the brokerage has tracked the two metrics.

"Rental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom in apartment construction," Redfin Senior Economist Sheharyar Bokhari said.

The affordability gap between renting and purchasing is expected to grow further this year amid rising home prices and elevated mortgage rates, Bokhari said. "That means potential homebuyers -- especially from younger generations -- may decide to continue renting for longer, as it's the only affordable option."

On Tuesday, Redfin said US home prices in December recorded their biggest annual increase in almost a year, with all 50 of the most populous metros tracked by the firm seeing year-over-year gains for the first time since May 2022.

Price: 7.95, Change: +0.15, Percent Change: +1.92