NEW YORK, April 20, 2022 (Newswire.com) - You may have noticed that rent prices are rising around the country, but why? In this article, we'll talk about why we've seen a sharp increase in rental prices in recent years, and discuss some of the most expensive cities to rent.
With rent being most people's largest monthly expense, high prices can hinder important financial goals. For instance, anyone who wants to pay off debt or save will likely find those to be challenging goals in the face of rising rent prices across the U.S. If you have debt you're trying to pay off, or you're trying to put money toward a nest egg, you'll need to find a way to counteract the cost of living increases. This could mean moving to a less expensive city or finding a roommate or two.
Why Rent is Rising
Experts feel that these sharp increases are due to a couple of factors. The most influential factor is that there is more demand than supply. Especially in urban areas, the number of individuals looking for affordable housing exceeds the availability. Additionally, they lack the money to make a down payment on a home, and banks are more cautious about granting mortgages than they once were.
The result is that more people than ever before are looking to rent rather than buy. This means landlords can charge more, as much as the market will bear.
The other key reason rent is rising is that median home values have gone up over the past two years. Lately, the housing market has started to level off, but as recently as this past summer, it was very much a seller's market.
When home values go up, it means anyone looking to buy might decide to put that off until later, when the market cools down. These individuals or families will try to rent in the meantime, which means more people are looking for rental properties than would typically be the case.
The Most Expensive Cities
Now, you have some idea of why rent is so high. But in which cities will you find the highest median average prices if you're looking for a house or apartment for rent?
San Francisco leads the list, with the average median rent at nearly $4,000 per month. New York is next, at $3,400 per month. After that comes Boston, at $3,150 per month.
The next few cities on this list are Miami, Washington D.C., and Los Angeles. The median rental price for those three, in order, are $3,100, $3,010, and $2,940.
After that come San Diego, San Jose, Fort Lauderdale, and Oakland. These cities will cost you a median rental average of $2,900, $2,870, $2,810, and $2,770, respectively.
Consider Your Priorities When Deciding Where to Live
You now know that house and apartment rental prices are high because there's more demand for affordable rental properties than ever since many individuals can't afford to buy. The other reason is that housing prices, in general, have gone up, so some individuals and families are waiting until the market cools before they attempt to secure a mortgage.
That means you're looking at a lot of competition across the country if you're trying to find an affordable rental property. However, there are certain cities and regions that will cost you a lot more than others.
If you live in virtually any major city in California, New York City, Boston, Washington D.C., or a larger city in Florida, you will pay the most for a rental property right now. The trade-off is getting the cultural, recreational, and work opportunities those cities provide. In California and Florida, you can also get the benefit of nice weather for much of the year.
If you move to a city or region where rental properties are cheaper, you can enjoy a more moderately-priced cost of living. You'll need to consider your priorities when deciding where you wish to live.