It's no secret that apartment rent is on the rise. Rent price increases are happening across the country, in almost every state, for both one-bedroom and two-bedroom apartments. And, while some states are seeing more significant increases than others, a few cities are tipping the scales with huge jumps in rent.
Why is this happening and where? While there are a lot of factors that play into the rental market and rent prices, there are a few major cities experiencing over a $1,000 rent increase since last year. On each coast, and in both the North and South, these cities are going big when it comes to raising the rent.
Jersey City, NJ
One of the major benefits of living in Jersey City is its proximity to The Big Apple. You can commute into the city each day for work, but avoid its high cost of living and crowded spaces.
Neighborhoods throughout Jersey City cater to young families, children and pets. It's also a trendy spot, close to the style and influences of New York City. There's no shortage of shops, bars and restaurants, either.
A strong public transportation system makes Jersey City easy to navigate, even if you don't want to own a car. You can utilize NJ Transit, take the Waterway Ferry or coast into New York City on PATH.
Given the competitive nature of real estate renting in New York, Jersey City's many conveniences continue to attract more people. This also means rentals are high in demand. Jersey City has seen the highest rise in rent since last year, with an average increase of $1,533. And, although, average rent prices for individual units aren't the highest, they're nothing to scoff at. Currently, expect to pay an average of $3,943 per month for a one-bedroom apartment and $5,371 for a two-bedroom.
New York, NY
While it may still hold some secrets, there's no denying New York City has a lot going for it. It's the city of opportunity, where almost any career aspiration can come true. From rising up the ranks on Wall Street to opening your own shop or restaurant, you don't have to struggle to find 'your people' in a city like this. It's full to the brim.
Not only that, but N.Y.C. is a fun place to live. There are plenty of museums, bars, clubs, restaurants, shops, coffee houses, ice cream shops…the list could almost go on forever. As soon as you leave work, you'll never be without something to do or somewhere to go to meet up with friends.
A strong subway system makes travel throughout the city so easy you won't ever need to own a car. For those who love to walk, it's easy to traverse the city blocks to get from Point A to Point B.
Notoriously expensive when it comes to real estate, there are always references to what it's like living in N.Y.C. Jokes about eight people sharing a studio are common, and rent prices are high enough that having a roommate is almost a necessity. The average rent for a one-bedroom apartment is $5,119, and a two-bedroom can cost you $7,979 per month.
Even at these high prices, the city is seeing a huge increase in rent costs, rising by $1,273 on average over the last year.
Austin, TX
A friendly and quirky city, Austin combines college students, families, young professionals and, of course, music lovers all in one. Although it's not a small city by any stretch, locals work hard to make everyone feel welcome and included. They take pride in the city's reputation of being a positive place. Austin also ranks fifth in the nation as one of the best cities to find a job.
The perks of big city living, at a lower price, make Austin an attractive spot for many. Among all the delicious restaurants (Tex Mex and barbecue abound), culture, outdoor recreation and more, the city makes every moment fun. Its proximity to the Colorado River means there's always something to do outside and plenty of food trucks nearby for when you work up an appetite.
Austin is full of vibrant and unique neighborhoods, all at different price points. You can live happily for cheap, but on average, rent isn't too high, comparatively speaking. The average price of a one-bedroom apartment is $2,918, and a two-bedroom is even less per month, at $2,302. Still, the city is seeing a lot of growth which has led to average apartment prices rising by $1,162 over the past year.
Glendale, CA
Only 10 miles away from the bustling downtown Los Angeles, Glendale is technically a suburb. The area attracts residents thanks to its climate, quality of life and employment potential. A tight-knit community where over half the city's residents were born outside the U.S., brings a variety of cultural influences to the area.
Employment opportunities skew toward city services, such as working for the school district or for the city of Glendale itself. A few heavy-hitting corporations do call this area home as well. Nestlé, IHOP and Dreamworks Animation are all based in Glendale.
Nice weather all year long make this area popular for golfers and means there are plenty of parks. The city of Glendale maintains 36 parks and is also home to the Verdugo Mountains where you can bike, hike and even horseback ride.
Rent increases in this area rose $1,064 over last year on average, which explains a lot when it comes to rental unit prices. They're on the higher side for the country (not so much for California.) A one-bedroom is $3,264 per month on average, while a two-bedroom will cost you around $4,674 per month.
Miami, FL
One of the most populated areas in Florida, Miami is also a cultural, economic and financial hub for the state. Home to the busiest cruise port in the world, there's also plenty of diversity when it comes to job opportunities. The city has one of the largest concentrations of international banks in the country and serves as the headquarters for Cisco Systems. These professional opportunities aren't all that attract people to Miami. Its reputation as a major fashion center brings in designers and modeling agencies alike.
While most locals will tell you that you need a car to get around, there are plenty of options when it comes to public transportation. This makes Miami easier to navigate, especially when there's traffic.
Miami's diverse population gives the city an eclectic vibe that's represented in its vibrant nightlife and variety of eateries and shops. Additionally, you're never far from a massive local festival. There's also the beach. Some of the most beautiful beaches are in Miami, and many are open to the public. This particular amenity is high on many people's lists when it comes to picking a place to live.
Miami just makes the list of cities seeing rent price increases over $1,000. The average increase here is $1,042. Miami is more expensive than a lot of cities, but not yet up there with the heavy hitters in the North. Expect to pay, on average, $3,250 per month for a one-bedroom rental, and $3,799 per month for a two-bedroom.
What's causing the rent to increase by so much?
Rent prices in these, and many other cities, are on the rise for a variety of reasons, and it's not just because the housing market is so hot. Demand is driving up prices and making it more competitive to secure a rental, but that could all change in the next few months. Only time will tell, but as for now, other factors influencing rent prices include:
- A return to cities for those renters who left during the pandemic. This bump in demand can raise prices.
- Current renters are staying put. This decreases the available inventory for new renters which can make the market more competitive and drive up prices.
- The real estate market is playing catch-up to pre-pandemic growth. COVID-19 stopped the real estate market almost in its tracks, and rents saw a decrease at the height of the pandemic. Now, as things return to normal, the market is playing catch-up, making what should have been a gradual increase in price seem like it's moving much faster.
- New construction is on the rise and developers market everything new as a luxury rental. Luxury always has a higher price tag, and new construction also often fetches a higher rental price.
These factors set the rental market up as a landlord's market. They have the power to set prices higher than you might expect and make it harder for you, as a renter, to negotiate. However, not all cities with rising rents are pricing everyone out of the market. Pockets of affordable housing still exist, and not every city is experiencing rent prices that would blow any budget
Methodology
Data on rental increases is drawn from Rent. monthly Rent Report. To determine average rent prices, we started with April 2022 data from Rent.'s multifamily rental property inventory and evaluated changes seen since April 2021. Monthly prices are based on the average price for that respective month as a whole.
We used a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets. From there, we looked at historical standard deviations of our weighted rent prices to remove outlier markets and minimize potential volatility caused by lower inventory. Rent price increases and decreases per time period are based on the percentage change of apartment rental prices from April 2021.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
