Here Are The States Where Rent Prices Are Dropping - And Where They're Increasing
With financial challenges brought on by inflation, many individuals have run into problems with finding affordable housing. The ongoing increase in rents common across the nation this past year has also further exacerbated the problem. However, the rental market seems to be taking a turn, with rents decreasing in some states — but still on the rise in others.
As mentioned by Rent.com, September and October saw small but steady decreases, whereas November reflected a slight climb in rents. On average, monthly rental payments went from $1,983 to $2,007. This trend resulted from an upward climb in rent prices for two- to three-bedroom units with prices on the higher-end units bouncing back.
With these factors in mind, some residents will get a reprieve from increasing prices while others may have to brace for yet another rent hike. So here are the states where rental prices are on the downturn along with the states where renters will still feel the financial pinch of an increase.
States where rents are decreasing
According to USA Today, as of November, Georgia, Idaho, and Nevada reflected a year-over-year drop in rent prices. Also included in this trend were Maryland and Virginia. Specifically, Virginia saw the smallest drop of -0.1%, and the most significant decrease was seen in Nevada, where rents fell by 3.9%. Nevada was followed by Maryland at -1.3%. Idaho and Georgia's rent both declined by 1.2%.
Additionally, Georgia and Maryland were the only states out of this group showing one metro area as having a decrease in rents. Atlanta experienced a decrease by 1.8%, and Baltimore came in at -4.4%.
In relation to month-over-month trends, Rhode Island residents experienced a much-needed reprieve. Rental prices in the Ocean State decreased by almost 7% going into November.
Overall, a report from Redfin predicts a national decrease in rent prices in the upcoming year if housing demand cools down and inventory goes up.
States where rent prices are still climbing
On the opposite end of the nation's rental-market spectrum, the top three states where rent prices were on the rise year-over-year include New York with a 32% increase, Florida at 23%, and South Dakota at 22.3%. Other states that saw a rise in prices are Arkansas at 17%, Nebraska at 14.5%, and Utah at 14%.
Likewise, New Hampshire came in with a 13.4% increase in rents, and Delaware, Kentucky, and Tennessee all saw a 13% climb. Furthermore, Tennessee experienced a month-over-month rent-price increase of 1.88% along with Mississippi at 2.03% (per USA Today).
Moreover, metro areas in some of these same states also saw upward trends in rent prices. Out of this group, Tennessee had one of the highest, with the Nashville area experiencing a 15% hike in rent prices and Memphis seeing a 10% rise. Utah's very own Salt Lake City also saw a noticeable climb of 14%, while the Miami area came in at 9%.