Renter Livability and Satisfaction Survey
Top Cities for Renters List 2005

Released Winter 2005

Sort by: Livability Rank, Region, Satisfaction, Affordability, Renter’s Markets (Vacancy),
            PMI Housing Bubble Index*

The Cities | Methodology

Methodology | The Cities

The Renter Livability and Satisfaction table is based on the results of analyzing data collected from users of ApartmentRatings.com regarding renter satisfaction and average rent along with data regarding local economic conditions from secondary sources. The index uses the most up-to-date information available from government research agencies for income and rental vacancy. The most current data were available for 2003 and 2004 respectively.

The Renter Livability and Satisfaction index is determined by the following variables: (i) Renter Satisfaction, (ii) Affordability, and (iii) Vacancy. Renter satisfaction: Renter satisfaction includes approximately 86,000 ratings posted by visitors to ApartmentRatings.com from 7/1/2004 – 6/31/2005 for 94 MSA’s (Metropolitan Statistical Areas). All MSA’s for which more than 150 responses were available, were included in the survey. Affordability: Affordability was estimated by comparing information gathered from renters’ disclosure of monthly rental rates on ApartmentRatings.com from 7/1/2004 – 6/31/2005 for 94 MSA’s with data from the US Bureau of Economic Analysis of 2003 Per Capita Income in Metropolitan Areas (http://www.bea.gov/bea/newsrel/MPINewsRelease.htm). Vacancy: Rental vacancy rates for 2004 were used as reported by the US Census Beareu for the 75 Largest Metropolitan Areas. Where Census Bureau data was not available, the statewide vacancy rate was used (also reported by the US Census Bureau, http://www.census.gov/hhes/www/housing/hvs/annual04/ann04ind.html).

* The PMI Score is from PMI Group's Risk Index published 4/27/2005. This score rates the "likelihood of home price declines over the next two years" using PMI Group's proprietary model. Examining the best cities for renters in combination with the PMI risk index is helpful for prospective home buyers-- a renter in a favorable market with a high PMI risk index may wish to delay their purchase of a home to avoid buying at the peak of the market. It is also interesting to note that many of the worst markets for renters are rated as the most at-risk to decline. One possible conclusion is that in markets where renting is unfavorable, consumers respond by rapidly bidding up the price of houses, leading to bubble-like conditions that earn a high PMI risk index score. However, conclusions regarding the relationship between the renting market and home buying market should be rigorously tested due to strong correlation of various explanatory variables that affect both markets.