May 9th 2024.
According to a recent map, there has been a significant increase in rent prices in certain American cities. While the overall trend in the country has been a slight decrease in rent, some of the largest metropolitan areas have experienced the opposite. In fact, out of the 50 largest metros, only 18 saw an increase in rent for one- and two-bedroom units in March, as reported by Realtor.com in late April.
The top five cities on the list are all located in the Northeast and Midwest regions. According to Realtor.com economist Jiayi Xu, the lack of available land for building multi-family units in these areas has been a key factor in driving up rent prices. Additionally, the high housing prices and rising mortgage rates in these expensive markets have led many people to opt for renting instead of buying. As a result, the demand for rentals has increased, especially with the lower unemployment rates in these cities.
So, which cities have seen the greatest rise in rent prices? Let's take a closer look at the top five.
1. Chicago, Illinois
This bustling city by Lake Michigan takes the top spot with a median rent of $1,846 in March, which is a 4.3% increase from the previous year. With its iconic skyline and popular Riverwalk, Chicago has become a highly desired location, leading to a surge in rent prices.
2. New York City, New York
As the most populous city in the US, it's no surprise that New York City is also on this list. The median rent in March was $2,876, a 3.8% increase from the prior year. With its diverse culture and endless opportunities, it's no wonder that many people are willing to pay the high rent prices to live in the Big Apple.
3. Kansas City, Missouri
Moving to the Midwest, we have Kansas City, Missouri, taking the third spot on the list. Despite its more affordable rent prices compared to Chicago and New York City, Kansas City still saw a significant increase of 3.4% from a year ago, with a median rent of $1,340 in March.
4. Boston, Massachusetts
Known for its rich history and beautiful harbor, Boston takes the fourth spot with a median rent of $3,023 in March. While this may be the highest rent among the top five cities, it's only a 3.3% increase from the previous year, showing a slower growth rate compared to the other cities on the list.
5. Indianapolis, Indiana
Last but not least, Indianapolis rounds out the top five with a median rent of $1,297 in March, which is similar to Boston's 3.3% increase from a year ago. According to Xu, Indianapolis and Kansas City both have strong labor markets and relatively affordable rent prices compared to Chicago, making them attractive options for renters.
It's interesting to note that none of these top five cities made the list of the top five US states to live in, as revealed by U.S. News and World Report on Tuesday. It goes to show that while rent prices may be on the rise in these cities, there are other factors that people consider when choosing a place to call home.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
