Rent prices continue to rise across the United States, but a handful of regions are bucking the trend with year-over-year declines of up to 15%, according to a new study.
The average rental price in the United States was $2,029 in June, an increase of 0.5% compared to the same month last year, according to the Rent.com report.
The states with the largest year-over-year increases are South Dakota (27%), Mississippi (27%) and Iowa (16%).
But several have bucked the trend – and they’re among the most beautiful in the United States, offering flexible people the tantalizing opportunity to live in quaint bliss.
Rents in Washington have fallen 7% on average over the same period, meaning the Pacific Northwest state has seen the biggest year-over-year decline in the country.
Idaho (-6%), Arizona (-5%), Texas (-4%) and Nevada (-3%) – all renowned for having areas of outstanding natural beauty – round out the five first states with a decline.
Snoqualmie Falls near Bellevue, Washington. Rents in the state, home to some of the most beautiful scenery in the country, are down 7% since last June
Rent in the Austin-Round Rock-Georgetown, TX metro area is down 14% in one year
The state with the largest year-over-year increase was South Dakota (27%), according to Rent.com. Pictured: Sioux Falls, the most populous city in South Dakota
Average rents in Idaho are 6% lower than in June 2022. Pictured: Boise, the state capital
Several of the 50 most populous metropolitan areas have also seen significant year-over-year fluctuations in their rental costs.
The highest risers include Kansas City, Missouri, where prices are up 16% on average. The other leaders are Providence-Warwick, RI-MA (+11%), Minneapolis-St. Paul-Bloomington, MN-WI (+10%) and San Jose-Sunnyvale-Santa Clara, CA (+9%).
Metro areas with the largest rent declines were Cincinnati, OH-KY-IN (-15%), Austin-Round Rock-Georgetown, TX (-14%) and Seattle-Tacoma-Bellevue, WA (-14%) .
Austin has enjoyed a huge boom in recent years, but in recent years has developed a reputation for being overpriced, potentially deterring Americans from moving to the progressive Texas city.
Seattle has become famous for its downtown filled with vagabonds, drugs and crime. But the city is still home to the global headquarters of tech giants Amazon and Microsoft, and is just a short drive from stunning coastal and mountain scenery.
The report also says national averages have risen for four consecutive months since February.
Rents in June were 1.7% higher than in May, he said, the second highest monthly increase in 12 months.
But despite recent increases, the national average rent is still 1.8% lower than in August of last year.
Rent bills are on average $275 higher than in June 2021.
John Leckie of Rent.com told USA Today, “Rents are basically still going up, but price growth is more subdued than it has been in the past. And this will be very good news for tenants in the future.
Kansas City was the metro area with the highest average annual rent increase. Rent rose 16% in year to June 2023, study finds
Rents in the Seattle-Tacoma-Bellevue, WA metro area are 14% lower than June 2022
The findings follow another study that found Americans are facing one of the toughest rental markets in years – with up to 20 potential renters per apartment in some cities.
The North East is at ground zero in the battle for a new apartment, as inflation, rising interest rates and cost of living pressures shatter the dreams of home ownership for many Millennials and Gen Zers.
Almost half of the 20 most competitive markets for rentals in 2023 are in the North East, with North Jersey topping the list, according Rent Cafewhich analyzed 134 markets across the United States in May.
Sunbelt states also feature prominently in the data, which was compiled using factors such as the number of days apartments were vacant and the number of potential tenants.
Occupancy rates currently sit at nearly 95%, while 60% of these tenants have renewed their leases, leaving Americans with very little ability to move.
With an average of eight potential buyers per apartment and units only remaining on the market for just over a month, renters are tearing their hair out trying to find safe, clean and affordable housing, especially in the northeast.
New York City (pictured) – known for its high prices – saw a surge of people leave bright lights as tenants suffered sticker shock due to high shoebox turnover rates
The strong demand could be partly because renters in New York have been shocked by exorbitant shoebox turnover rates in the city, where one-bedroom apartments now cost an average of $5,000 a month.
Post-pandemic price increases have seen a surge of people leave the bright lights. And even more may soon follow them, forced to flee a city they can no longer afford, as the Rent Guidelines Board recently voted to raise rents by up to 7% in nearly a million properties. rent-stabilized apartments, according The New York Times.
Many former New Yorkers moved to North Jersey instead. The area has a relatively affordable cost of living for the tri-state area and is the easiest place in the northeast for homebuyers to try their luck against a white picket fence.
But, with 96.6% of rentals occupied, this leaves little room for newcomers to find the accommodation of their dreams.
Most of the other competitive markets are also in the Northeast, with Boston; Brooklyn; Harrisburg, Pennsylvania; Philadelphia suburbs; Pittsburgh; and New Haven all on the list.
Apartments across the United States spend about 38 days on the market, leaving little time for renters to scoop up their dream units as they compete with an average of eight potential buyers.
Northern New Jersey enjoys a relatively affordable cost of living for the tri-state area and is the easiest place in the northeast for potential buyers to get a shot at a white picket fence.
Despite the housing and rental market nightmare, the market is doing slightly better than last year. Potential tenants vying for each flat have fallen from an average of 11 to eight, while places remain on the market an average of six days longer – to 38 days.
Occupancy fell more than one per cent from 2022 as four per cent more tenants seek not to resign from their leases this year compared to the same period last year.
Even places like Orlando and Miami, which have seen a boom in new apartment complex construction, can’t keep up with the demand, especially as New Yorkers continue to search for exciting new places around the world. State without income tax.
Only Milwaukee and central New Jersey were able to meet demand, according to Rent Café.
