Rent prices have been on the incline for a while now, and a new report shows that although there have been some signs of rent prices peaking, they have exploded in several states, and year-over-year rent costs are still high in most cities. Here’s what you need to know.
Rent.com has been keeping close tabs on rent prices across the country amid rising inflation rates, including monthly rental fees. The site looked at data from its multifamily rental property inventory to find how much rent prices have changed and to determine the increase or decrease based on a weighted average formula. Looking at the most recent data from August, Rent.com found some promising signs — and others that were more concerning.
“Rents continue to show significant year-over-year increases, including increases in over 90 percent of state-level markets for both bedroom types,” Rent.com writes. “But, while base-level rents have increased, national month-over-month figures are down more than two percent, indicating the peak in prices are in the rearview.”
Nationwide, the data shows that rent prices are down slightly when looking at August month-over-month trends. For example, data shows that the average rent for a 2-bedroom rental is $2,054. This figure is a decrease from last month by 2.47%. However, year-over-year change shows a 23.43% increase, but that’s still better than the previous month’s figures.
“Year-over-year increases slowed for both bedroom types,” Rent.com explained, referring to 1- and 2-bedroom rentals. “A hopeful sign of more moderating rent prices in the near future.”
The year-over-year figures changed more drastically for some states than others in August. The states that saw the most significant increase in rent for 2-bedroom rentals include Alaska, with a whopping 204.63% increase, Pennsylvania, up 57.57%, and Oregon, up 56.12%.
There is good news for a few states as well. For example, 2-bedroom rentals in Rhode Island decreased in cost by 6.42% year-over-year, Nevada went down 5.32%, and Oklahoma dropped by 3.25% in August.
Rent.com dug into the numbers more deeply, looking at the increases and decreases in cities across the country.
The top five cities with the highest increases in rent for two-bedroom apartments year-over-year:
- Durham, NC (+49%)
- Greensboro, NC (+38.8%)
- Fremont, CA (+37.6%)
- Salt Lake City, UT (+35%)
- Fort Wayne, IN (+34.7%)
The top five cities with the largest decreases in rent for two-bedroom apartments year-over-year:
- Charlotte, NC (-27.3%)
- El Paso, TX (-25.2%)
- Des Moines, IA (-22%)
- New Orleans, LA (-21.3%)
- Reno, NV (-19.1%)
View the full interactive map at Rent.com