Rents are growing fastest in unexpected places
Rents are still most expensive in large coastal markets, but they are growing fastest in smaller markets in the Northeast and Midwest While rents are most expensive in large coastal markets like New York City, the San Francisco Bay Area and Boston, the fastest-growing rents are in unexpected places. New data from Zillow® shows rents are growing faster in Hartford than any other major market, and Cleveland and Louisville aren’t far behind. “More people move during the summer, which causes the rental market to heat up,” said Skylar Olsen, chief economist at Zillow. “Renters are being drawn to more affordable areas within the Northeast and Midwest. Commuting into New York City or Boston from places like Hartford or Providence might have been a deterrent before, but in this new age of remote and hybrid work, the savings seem worth it for many renters, even if it means an occasional painful commute.” Rents have grown 7.8% over the past year in Hartford, more than any other major market. Cleveland (7.2%), Louisville (6.8%), Providence (6.3%) and Milwaukee (5.7%) round out the top five. The typical rent eclipses $3,000 in a few coastal markets. New York City is the most expensive rental market with a typical rent of $3,472 across the metro area, according to the Zillow Observed Rent Index (ZORI), while StreetEasy® data shows the median asking rent is $4,400 in Manhattan. Coming in just behind is the San Jose metro area with a typical rent of $3,429, followed by Boston ($3,127), San Francisco ($3,119) and San Diego ($3,083). Los Angeles, with a typical asking rent of $2,975, could join that list later this summer if the current pace of rent growth holds. Nationally, the typical rent is $2,054, according to ZORI. That is up 3.5% from last year, the fastest annual growth since last July. Metropolitan Area* Typical Rent (ZillowObserved Rent Index –ZORI) ZORI Month overMonth Change ZORI Year over YearChange United States $2,054 0.5 % 3.5 % New York, NY $3,472 0.9 % 3.8 % Los Angeles, CA $2,975 0.5 % 2.7 % Chicago, IL $2,118 0.9 % 5.0 % Dallas, TX $1,822 0.4 % 0.2 % Houston, TX $1,730 0.6 % 2.2 % Washington, DC $2,455 0.8 % 5.0 % Philadelphia, PA $1,898 0.5 % 4.0 % Miami, FL $2,813 0.2 % 2.4 % Atlanta, GA $1,951 0.4 % 0.9 % Boston, MA $3,127 0.5 % 4.6 % Phoenix, AZ $1,889 0.0 % 1.1 % San Francisco, CA $3,119 0.5 % 1.6 % Riverside, CA $2,560 0.2 % 3.0 % Detroit, MI $1,480 0.6 % 5.2 % Seattle, WA $2,283 0.7 % 3.9 % Minneapolis, MN $1,678 0.3 % 3.0 % San Diego, CA $3,083 0.6 % 1.8 % Tampa, FL $2,114 0.1 % 1.5 % Denver, CO $2,090 0.4 % 2.4 % Baltimore, MD $1,871 0.8 % 3.4 % St. Louis, MO $1,423 0.8 % 4.9 % Orlando, FL $2,098 0.5 % 1.1 % Charlotte, NC $1,815 0.7 % 1.2 % San Antonio, TX $1,503 0.2 % -0.1 % Portland, OR $1,876 0.9 % 2.6 % Sacramento, CA $2,321 0.4 % 3.7 % Pittsburgh, PA $1,473 1.0 % 4.4 % Cincinnati, OH $1,542 0.6 % 5.2 % Austin, TX $1,839 0.2 % -3.0 % Las Vegas, NV $1,826 0.7 % 3.0 % Kansas City, MO $1,482 0.8 % 5.5 % Columbus, OH $1,559 1.2 % 4.7 % Indianapolis, IN $1,589 0.4 % 4.0 % Cleveland, OH $1,447 1.1 % 7.2 % San Jose, CA $3,429 1.0 % 3.0 % Nashville, TN $1,940 0.6 % 1.2 % Virginia Beach, VA $1,771 0.6 % 5.3 % Providence, RI $2,118 0.5 % 6.3 % Jacksonville, FL $1,768 0.1 % 0.8 % Milwaukee, WI $1,394 0.6 % 5.7 % Oklahoma City, OK $1,358 0.7 % 3.1 % Raleigh, NC $1,793 0.6 % 0.4 % Memphis, TN $1,477 0.5 % 2.7 % Richmond, VA $1,689 1.2 % 5.4 % Louisville, KY $1,417 0.6 % 6.8 % New Orleans, LA $1,685 0.3 % 2.9 % Salt Lake City, UT $1,729 0.8 % 1.9 % Hartford, CT $1,871 1.1 % 7.8 % Buffalo, NY $1,379 0.2 % 5.4 % Birmingham, AL $1,419 0.5 % 3.1 % SOURCE Zillow
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