By JONATHAN JONES
While inflation in most sectors of the economy has improved over the last year, the cost of shelter in the U.S. continues to remain high for many consumers. Inflation data released by the Bureau of Labor Statistics in October 2023 revealed that while the Consumer Price Index overall was up 3.7% year-over-year, the index for shelter had risen 7.2% over the same span. Increasing rent prices have been a major reason why.
The dynamics of the rental market in recent years largely reflect simple supply and demand. In the years following the housing crash and Great Recession, the number of new housing projects plummeted and were slow to recover over the course of the 2010s. Around the same time, the Millennial generation—America’s largest, with more than 72 million members—began to reach adulthood, introducing greater demand in the market.
Economic conditions during the COVID-19 pandemic have exacerbated issues with the rental market. As fast-rising real estate values priced more people out of homebuying, rental markets became more competitive among consumers. On the supply side, inflation in the cost of materials, rising interest rates, and tightness in the labor market have all contributed to difficulties in developing new housing stock.
Most & Least Expensive Large Metros for Renters
Top Metros | Median Rent |
---|---|
1. San Jose-Sunnyvale-Santa Clara, CA | $3,451 |
2. San Diego-Chula Vista-Carlsbad, CA | $3,175 |
3. San Francisco-Oakland-Berkeley, CA | $3,141 |
4. Los Angeles-Long Beach-Anaheim, CA | $2,777 |
5. Boston-Cambridge-Newton, MA-NH | $2,740 |
6. Seattle-Tacoma-Bellevue, WA | $2,692 |
7. New York-Newark-Jersey City, NY-NJ-PA | $2,589 |
8. Miami-Fort Lauderdale-Pompano Beach, FL | $2,450 |
9. Riverside-San Bernardino-Ontario, CA | $2,441 |
10. Sacramento-Roseville-Folsom, CA | $2,415 |
11. Denver-Aurora-Lakewood, CO | $2,373 |
12. Portland-Vancouver-Hillsboro, OR-WA | $2,245 |
13. Washington-Arlington-Alexandria, DC-VA-MD-WV | $2,212 |
14. Phoenix-Mesa-Chandler, AZ | $2,198 |
15. Orlando-Kissimmee-Sanford, FL | $2,181 |
Bottom Metros | Median Rent |
---|---|
1. Cleveland-Elyria, OH | $1,203 |
2. Oklahoma City, OK | $1,226 |
3. Tulsa, OK | $1,235 |
4. Milwaukee-Waukesha, WI | $1,246 |
5. Pittsburgh, PA | $1,261 |
6. Cincinnati, OH-KY-IN | $1,269 |
7. Buffalo-Cheektowaga, NY | $1,277 |
8. St. Louis, MO-IL | $1,316 |
9. Rochester, NY | $1,365 |
10. Columbus, OH | $1,390 |
11. Louisville-Jefferson County, KY-IN | $1,406 |
12. Detroit-Warren-Dearborn, MI | $1,414 |
13. Kansas City, MO-KS | $1,422 |
14. Birmingham-Hoover, AL | $1,441 |
15. Grand Rapids-Kentwood, MI | $1,451 |
FOR LANDLORDS
Landlord insurance limits the many risks associated with renting out property by compensating landlords in the event that there is property damage or liability. To protect your assets and income, you should consider carrying landlord insurance. Here are the best landlord insurance companies of 2023.