Most Expensive US Cities for Renters with Few Prices Up by 41%

Bloomberg News reports that the renters will not get easier anytime soon. It was found that the Zumper National rent Index registered yet another record. The monthly median costs for a one-bedroom property listed newly surged 11% to hit $1450 compared to what it was one year ago.

The most expensive market listed at $3,780 per month was New York City, as revealed by the rental company in its report in July. That’s almost up by a whopping 41% as compared to last year and 5% in comparison to last month, with relocations surpassing the pace at which it was during the pre-pandemic times.

San Francisco was recovering, with the rents moving back to what it was in the pre-Covid levels. A median one-bedroom there now comes for $3,100 per month, up by 14% and records as the highest in the last two years.

Escalating interest rates are a partially lagging trend, making purchasing homes difficult, as per Chief Executive Officer Anthemos Georgiades of Zumper Inc. According to the CEO, many prospective homebuyers are dropping out of the market to opt for rented property. This, in turn, is creating additional pressure on the rental market.

Bloomberg News reports that the demand is the prices are quite high even in those markets where the cost of living is not so high, which include areas like Tennessee and North Carolina. It is also being observed that every major city has had an upward trend for the last two years. A rental property comprising just one bedroom in Greensboro of North Carolina surged by 31% over July last, and 6% in the previous month. Costs increased by 37% last year in Nashville.

The table below shows the top 6 most expensive cities in California alone.

Source: Zumper Inc

Few the affordable cities include Akron Ohio, Wichita Kansas, and Lubbock Texas. These are the only places where the monthly rents are lower than monthly auto payments.

The following table shows the cities that offer the cheapest rent. The figures below represent rent for a one-bedroom property as of July 2022.

Bloomberg News also reports that according to Georgiades, it is likely that there might be some respite on the horizon as consumers will continue restricting their expenses.