(NEXSTAR) – If you’re not buying a new home in the hot housing market, you’re probably among the millions of Americans who rent.
In the 50 largest metro areas of the U.S. subway, average rents rose a staggering 19.3% from December 2020 to December 2021. Analysis by Realtor.com real estate with two or fewer bedrooms.
Data from the Department of Labor show that rental costs increased by 0.5% from December 2020 to January 2021 – the largest increase in one month in 20 years.
Experts say many factors are causing astronomical rents, including housing shortages across the country, extremely low rental vacancies and relentless demand as young people continue to enter the crowded market.
States with rising, falling rents
Rental increases have not affected all U.S. states equally recent analysisRent.com found that in some states, rental rates rose by more than 50% from 2020 to 2021.
According to the analysis, Rhode Island had the highest growth compared to the same period last year: the average rent for a one-bedroom apartment jumped from 1023 to 1968 dollars – an increase in prices by 92%. Across the country in Utah, tenants are seeing a 71% increase in rents over the same period last year. The average price increased from $ 860 to $ 1471.
When it comes to average rental rates for one-bedroom apartments in Idaho (also located one from 2022 the hottest housing markets) experienced the greatest increase in rents. In 2020, the average rate was $ 928. In 2021, it averaged $ 1,754, an increase of 89%. Rhode Island was close behind with growth of 81% over the same period last year. In 2020, the average rent was $ 1,248. Last year it was $ 2,259.
Rents are not rising everywhere. In Nebraska, for example, the average rent for a one-bedroom apartment dropped from $ 989 to $ 975. For a unit of the same size New Hampshire dropped from $ 1,699 to $ 1,658. The average rent for a two-bedroom apartment in Wyoming fell slightly from $ 789 to $ 777.
Cities with maximum growth, lower rental prices
Rent.com also analyzed rental price trends in the 100 largest cities. Rents are rising in most of these areas. While Idaho and Rhode Island were the states most affected by rent increases, neither city was in the top five, with prices changing significantly over the year.
In these five cities there is the greatest increase in average prices for one-room rent for the year:
- Gilbert, Ariza (+ 108.5%)
- Long Beach, CA (+ 55.7%)
- Huntington Beach, CA (+ 49.2%)
- Jersey City, NJ (+ 46.6%)
- Austin, Texas (+ 45.1%)
In addition, these five cities saw the largest declines:
- Toledo, Ohio (-27.6%)
- Kansas City, Missouri (-21.6%)
- Indianapolis (-9.7%)
- Atlanta (-9.6%)
- Miami (-9.2%)
As for the average rent for one-bedroom apartments, in these five cities, prices have risen most significantly:
- New York (+ 49.9%)
- Fresno, CA (+ 44.3%)
- Aurora, Illinois (+ 41.2%)
- Salt Lake City (+ 40.3%)
- St. Petersburg (+ 39.5%)
At the same time, these five have experienced the biggest drop in prices:
- Shreveport, Louise (-28.6%)
- Kansas City, Missouri (-25.3%)
- Lincoln, Heaven (-18.6%)
- Wichita, Can. (-18.1%)
- Durham, NC (-14.0%)
Among those where rental prices have risen the most, two cities – Salt Lake City and St. Petersburg – also rank in 10 hottest housing markets for 2022. Indianapolis, where the average rental price has fallen, is also on this list.
Rent.com notes that states and cities with insufficient inventory were not included in this report, which you can view in full here.
In a recent report, Zumper predicted rent continue to grow by 2022, especially because of low supply but strong demand.
contributed to this report.