Top 10 US cities where rent is rising the fastest
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Rent prices are rising across the US - with the historically affordable Midwest seeing some of the biggest hikes. A recent analysis of Zillow data from SmartAsset revealed that five of top ten cities with the fastest climbing rent prices were located in the Midwest. Once viewed as a more affordable option, the Midwest has seen a spike in rent prices as demand increases. Experts have pointed out that stable insurance prices, lower property taxes and a steady housing market are major contributing factors for the move to the Midwest, the Economic Times reported.
The SmartAsset report noted that the cities analyzed are not the most expensive overall, as destinations such as New York City and Los Angeles continue to dominate. Boston and San Francisco saw some of the worst housing shortages in 2024, according to a 2024 Zillow report. Boston saw the highest average rent, $3,495, after experiencing 4.1 percent increase in rent costs. While coastal cities still remain among the most expensive in the country - New York or San Francisco had average rent prices of $3,350 a month - costs are jumping in some unexpected places. Scroll down for a list of the top ten cities with rising rents.
10. Rochester, New York
The western New York city saw the lowest increase out of the top ten, with a 5.5 percent change in a year. Average rental prices in February of 2024 sat at $1,396, compared to this year's $1,472 per month.
9. Lexington, Kentucky
8. Detroit, Michigan
Detroit saw a 5.8 percent increase, with its average rent in February of last year reaching $1,266. At the same time this year, Detroit's average rent sat at $1,339.
7. Toledo, Ohio
6. St. Petersburg, Florida
5. Milwaukee, Wisconsin
4. Fort Wayne, Indiana
3. Columbia, South Carolina
Columbia, with about 147,000 people, ranked third with a 6.7 increase in rental prices. Average costs in 2024 sat at $1,409 and increased to $1,504 this year.
2. Cleveland, Ohio
1. Newark, New Jersey
At the number one spot, Newark saw an 8.1 percent increase in rental costs. Rental properties increased from an average $2,073 to $2,241 since last year. The analysis comes as house hunters revealed that the Midwest is also home to some of cheapest overall living costs. Data from this year's Wall Street Journal/Realtor.com Housing Market Ranking indicated that 12 of the 20 markets on the list are located in the Midwest. The study showed that Midwest states dominate when it comes to climate resiliency, low home prices, and cost of living.
Four areas that stick out from others on this list were the Wisconsin cities Milwaukee, Green Bay, and Appleton, as well as Fort Wayne in Indiana. Milwaukee, Green Bay, and Appleton have average unemployment rates of 3.8, 3.3, and 3.1 percent, respectively, all below the national average. Fort Wayne also sits below the national average at 4.1 percent. The list comes amid worry over a potential repeat of the 2008 real estate crash, which was part of the Great Recession. Weather has become a more crucial factor in one's living situation over the years due to devastation from wildfires and other natural disasters.
Insurance companies have also been increasing premiums, making it pricier to live in certain areas. Some states with increasing premiums resulting from devastating weather include California and Florida. Over 55 million Americans will relocate to places less susceptible to climate risks by 2055, with 5.2 million doing so this year, according to a First Street Report. With insurance costs set to surge by 29.4 percent over the next 30 years, house hunters are fleeing to the Midwest to live in states with lower risks of damage from climate-related events.
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