Despite the less-than-optimistic economic outlook, rent prices have been on the rise across much of the country this year. It appears like inflation is pushing prices up for renters, as the average rent in the US has risen by +14.75% since June 2021. Rents have surged even higher than the national average in several of the nation’s most expensive rental markets, namely in Miami (+28.35%), New York (+20.50%), and San Diego (+19.26%).
Here are the top 6 most expensive rental markets in the US.
1. San Francisco
San Francisco’s average rent price is currently $3,266, making it the highest average rent price of all major US cities. Since the advent of the information age, Silicon Valley has transformed the housing market in San Francisco as the area continues to attract economic opportunities in the tech sector. San Fran’s average rent price is up +8.9% year-over-year and up +11.85% over a 5 year period.
2. New York
New York’s average rent price of $3,186 is the second highest in the US. New York has always been a center for business, especially in the financial sector. This has attracted affluent white-collar renters for years and will continue to do so in the foreseeable future. Rent prices have surged in New York over the past year, increasing by +20.5% since June 2021.
3. San Diego
San Diego ranks third among the most expensive cities to rent an apartment in the US with an average rent price of $3,078. San Diego’s rent price has gone up by +19.26% since last year and a whopping +44% over the last five years. During that 5-year time span, San Diego surpassed the 4th most expensive rental market in the US, which is also located in California.
4. Los Angeles
The average rent price in Los Angeles is $2,951, which is up +15% year-over-year. Los Angeles has not maintained the same price growth as San Diego to the south, losing its place as the nation’s 3rd most expensive rental market in May of 2021 after LA began losing residents. Still, rent prices are up by +30.52% in Los Angeles since June 2017.
5. Miami
Miami now ranks as the 5th most expensive city to rent an apartment in the US with an average rent price of $2,848. Miami’s average rent price grew by +28.35% over the past year, which was the largest single year increase in average rent out of the top 100 metros in the US. That allowed Miami to surpass Boston to take over number 5 on this list. South Florida took on a record number of new residents during COVID when it stayed open for business. Now rent prices and home prices in South Florida are surging to record levels.
6. Boston
Boston’s rental market is the 6th most expensive in the US with an average rent price of $2,836. Prices rose by +11.57% over the past year in Boston after stagnating through COVID, and the current inventory of available apartments in Boston is at a historic low. This will likely push prices higher in the immediate future.