A recent report from Zillow reveals that soaring rent prices are pushing residents out of major coastal cities while unexpectedly increasing costs in other regions.
While cities like New York, San Jose, and Boston continue to dominate the list of the highest average rents nationwide, areas such as Hartford and Cleveland are experiencing the fastest annual rent increases, with Louisville and Milwaukee also seeing notable rises.
Over the past couple of years, rent across the United States has surged due to rampant inflation and high interest rates, which have deterred potential homebuyers. Although rent has declined from its peak, it remains up 3.5% from last year, averaging $2,054 for what Zillow defines as typical rent.
Factors Driving Rent Increases in New Areas
As inflation has tightened budgets for many renters, an increasing number are opting to relocate to more affordable areas outside major urban centers, inadvertently driving up average prices.
“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 with the rise of remote and hybrid work, many find the cost savings worthwhile, even if it means dealing with a longer commute,” said Skylar Olsen, Zillow’s chief economist.
For example, typical rent in Hartford stands at $1,871, significantly lower than New York City’s average of $3,472, illustrating the growing appeal of lower-cost living options.
