Homebuyers need more income than renters in all metros.

Renters need less income than homebuyers searching to purchase a home. According to Redfin, homebuyers need an income of roughly $111,000 per year, while renters hover around $76,000. This is the smallest the gap has been in the past three years, partially due to the fact that the amount of income needed to purchase a home has declined while the income needed to rent an apartment has increased during that time period. While the income levels have changed, so too have the incomes themselves, inching upward.

"While rental costs are still rising on a year-over-year basis, they have started to decline month over month. Rental affordability could notably improve if current trends persist," according to the report.

Meanwhile, rental affordability improved in five of the top 50 most populated metros: Phoenix, San Antonio, Denver, Austin, Texas, and Tampa, Fla. Renters in Austin need an income of about $62,000, down nearly 3% year-over-year.

Elsewhere, some metros are witnessing huge gaps in rental vs. home purchasing. In San Jose, Calif., an income of nearly $375,000 is needed, 175% higher than the needed rental income. Other tech centers like San Francisco and Seattle follow a similar model.