Rent price increases are slowing, but average prices remain higher than last year.
Key Details
- Around 35% of all U.S. households are renters, but finding affordable rentals is more difficult than ever.
- From March to April, the price of rent increased 0.6%, according to Zillow’s April rental report.
- The increase is slightly lower than the 0.7% average increase in Aprils from 2016 to 2019, Nerd Wallet reports.
- Rentals are typically around $2,018 a month—a 5.3% increase from last year. Overall rental growth has slowed since its high in February 2022.
Why it’s news
While rent growth is slowing down, the factors leading to the rapid growth are still weighing on the market. Inflation, low inventory, changing workforces, and shifting consumer priorities make finding an affordable rental increasingly difficult.
Inflation and low inventory are expected price increases in the market. Landlords with higher costs must pass these expenses along to their renters. High demand and low supply have prompted jumps in prices.
However, there are some unusual factors driving the price growth. During the pandemic, many cities enacted rent freezes to prevent mass evictions. Landlords looking to make up for lost revenue may be incentivized to hike their prices or opt not to renew leases with current customers.
Renter priorities have also shifted in the last year. With more remote work options available, desirable locations have shifted. Rural areas that were once low-cost may now have higher rates as more residents move to the area. Additionally, fewer renters are willing to live with roommates. More renters are holding out for a rental opportunity that allows them to live alone. Studio and one-bedroom apartments are in higher demand than in years past, Nerd Wallet reports.
Here are the cities with the highest rent increases:
Month-over-month:
- Providence, Rhode Island (+1.71%)
- San Diego (+1.29%)
- Hartford, Connecticut (+1.28%)
- New York City (+1.28%)
- Boston (+1.15%)
Year-over-year:
- Boston, Massachusetts (+8.5%).
- Cincinnati, Ohio (+8.1%).
- Providence, Rhode Island (+8.0%)
- Louisville, Kentucky (+7.5%).
- Kansas City, Missouri (+7.4%)
These cities have the lowest rent increases:
Month-over-month:
- Buffalo, New York (+0.06%)
- Portland, Oregon (+0.06%)
- San Antonio, Texas (+0.07%)
- Sacramento, California (+0.23%)
- Detroit, Michigan (+0.31%)
- Miami, Florida (+0.31%)
- San Jose, California (+0.31%)
- Austin, Texas (+0.31%)
- Las Vegas (+0.31%)
Year-over-year:
- Las Vegas (-1.2%)
- Phoenix, Arizona (+0.7%)
- New Orleans, Louisiana (+1.4%)
- Austin, Texas (+1.8%)
- San Francisco (+2.1%)
- Salt Lake City, Utah (+2.1%)
