Which U.S. cities have seen the biggest jump —and decline — in rent this year?
Rents in some cities in the South and Midwest are rising faster than the national average, driven by the migration of residents on the East and West coasts seeking more affordable housing.
The trend has caused rent in cities like Raleigh, North Carolina, and Indianapolis, Indiana, to climb more than 15% in November compared with a year ago, according to a new report from Rent.com. Data shows that rent rose an average of 7.4% nationally.
Americans are leaving major cities in New York and California and relocating to midsize towns in the South, according to migration data from moving company PODS. The median rent in the New York City area is $4,100 a month and $3,415 in Los Angeles, compared with $1,500 a month in Indianapolis and $2,100 in Raleigh.
"We can tell that, in general, renters are leaving the Northeast and they're leaving the West for places in the Midwest and South," Rent.com researcher Jon Leckie told CBS MoneyWatch. "There's price correlations to that. When you have that increase of demand, that's going to push your prices up."
Demand for rentals is also surging partly due to trends in the home-buying market, Leckie said. In some areas, house hunters, spooked by rising mortgage rates, have decided to rent for now in the hope that home prices cool further. People who sold their home this year and opted not to buy another one are also occupying rental units, Leckie said.
Here are the cities where rent has jumped the most from November 2021 to November 2022 along with their median rent, according to Rent.com.
Rent.com also noted the cities where rent has fallen the most over the last year.
The median rent around the U.S. in November rose to $2,007 a month, up from $1,983 the previous month, Rent.com said.
Those costs are likely to stay elevated in coming months but should eventually level off, or even drop, by mid-2023 as newly built units become available, Rent.com said.
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
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