Inflated home prices across the U.S. have many potential buyers turning to rentals as an alternative to homeownership, but rental prices have also inflated due to similar issues impacting the housing market. A recent report from Clever even found that rent prices have outgrown inflation as of late.
Although rent prices have heavily inflated, not every market is currently experiencing this issue. But, where are the markets with decreasing rent prices for renters to check out, and where can renters avoid rising prices?
SmartAsset’s new report examined the most recent available data to understand the rental market in 2023 when compared to 2022, and to find out where rents are increasing and where they’re decreasing.
The top 5 cities where rent has increased the least:
- Plymouth, Massachusetts, which dropped by 11.22% to $2,673
- Spotsylvania, Virginia, which dropped by 9.99% to $1,815
- Dripping Springs, Texas, which dropped by 8.48% to $2,172
- Payson, Utah, which dropped by 8.24% to $1,503
- Coeur d’Alene, Idaho, which dropped by 7.31% to $1,887
The top 5 cities where rent has increased the most:
- Amagansett, New York, which increased by 62.82% to $43,370
- Oxford, Mississippi, which increased by 37.46% to $1,660
- Orinda, California, which increased by 35.82% to $5,411
- Saint Pete Beach, Florida, which increased by 30.43% to $2,820
- Auburn Hills, Michigan, which increased by 29.7% to $1,351
Other key highlights:
- Rent increased by more than 30% in these cities. Located in the Hamptons, rents in Amagansett, New York are up 63% year over year, most of any city. Oxford, Mississippi; Orinda, California; and Saint Pete Beach, Florida saw rent increases of 37%, 36% and 30%, respectively.
- The most expensive places to rent cost up to $43,000 per month. Several neighborhoods in the Hamptons cost most and Malibu, California rent averages $16,000 per month. Meanwhile, the Florida neighborhoods of Palm Beach, Key Biscayne and Bal Harbour range from $6,900 to just under $13,800 per month.
- San Francisco rents rose only 1%, while New York City still beat inflation. The average San Francisco rent only increased by $37 from 2022 to 2023 – though it’s still one of the most expensive rents at $3,460. New York City rents average $3,602, up $191 from last year.
- Statewide, Florida rents exceeded inflation, while Texas rents kept pace. Florida rents increased by 6.4%, compared to a 4.05% inflation rate over the same period. Meanwhile, Texans experienced an average 4.2% – just about matching inflation. New York and California saw larger extremes, with New York at a statewide 8.8% increase and California at just 3.6%
- Rent actually decreased in these high-cost California cities: Wildomar had the highest rent decrease in the state at 6.1%. Rosemont, Elk Grove, Beverly Hills, Salinas, Thousand Oaks, San Roman and Lincoln rents also decreased between 2022 and 2023, despite their typically high prices.
For the full report, click here.