Accordingo to a new rental report from Zillow, rental prices are still the most expensive in desirable costal cities like New York City, Boston, and San Jose (along with the rest of the Bay Area)—who are the top three most expensive rental markets in the country—but rental markets in other parts of the country, especially those deemed “affordable” in the past are also seeing rental prices grow, especially in the Northeast and Midwest, led by the cities of Hartford, Connecticut; Louisville, Kentucky; and Cleveland, Ohio.
“More people move during the summer, which causes the rental market to heat up,” said Skylar Olsen, Chief Economist at Zillow. “Renters are being drawn to more affordable areas within the Northeast and Midwest. Commuting into New York City or Boston from places like Hartford or Providence might have been a deterrent before, but in this new age of remote and hybrid work, the savings seem worth it for many renters, even if it means an occasional painful commute.”
Rents have grown 7.8% over the past year in Hartford, more than any other major market. Cleveland (7.2%), Louisville (6.8%), Providence (6.3%) and Milwaukee (5.7%) round out the top five.
The typical rent eclipses $3,000 in a few east and west coast markets. New York City is the most expensive rental market with a typical rent of $3,472 across the five boroughs and beyond, according to the Zillow Observed Rent Index (ZORI), while StreetEasy data shows the median asking rent is $4,400 in the borough of Manhattan alone. Coming in just behind is the San Jose metro area with a typical rent of $3,429, followed by Boston ($3,127), San Francisco ($3,119) and San Diego ($3,083). Los Angeles, with a typical asking rent of $2,975, could join that list later this summer if the current pace of rent growth holds.
Nationally, the typical rent is $2,054, according to ZORI. That is up 3.5% year-over-year, the fastest annual growth since last July.
The top ten rental markets as of June 2024
- United States (average): $2,054, up 3.5% year-over-year
- New York City, New York: $3,472, up 3.8% year-over-year
- Los Angeles, California: $2,975, up 2.7% year-over-year
- Chicago, Illinois, $2,118, up 5.0% year-over-year
- Dallas, Texas: $1,822, up 0.2 % year-over-year
- Houston, Texas: $1,730, up 2.2% year-over-year
- Washington, DC: $2,455, up 5.0% year-over-year
- Philadelphia, Pennsylvania: $1,898, up 4.0% year-over-year
- Miami, Florida: $2,813, up 2.4% year-over-year
- Atlanta, Georgia: $1,951, up 0.9% year-over-year
- Boston, Massachusetts: $3,127, up 4.6% year-over-year
