Residential Real Estate News
U.S. Housing Rents Growing Fastest in Unexpected Places in 2024
While rents are highest in large coastal markets like New York City, the San Francisco Bay Area, and Boston, the fastest-growing rents are appearing in unexpected places. New data from Zillow reveals that rents are increasing faster in Hartford than in any other major market, with Cleveland and Louisville close behind.
"More people move during the summer, which causes the rental market to heat up," said Skylar Olsen, chief economist at Zillow. "Renters are being drawn to more affordable areas within the Northeast and Midwest. Commuting into New York City or Boston from places like Hartford or Providence might have been a deterrent before, but in this new age of remote and hybrid work, the savings seem worth it for many renters, even if it means an occasional painful commute."
Over the past year, rents in Hartford have surged by 7.8%, more than in any other major market. Cleveland follows with a 7.2% increase, Louisville with 6.8%, Providence with 6.3%, and Milwaukee with 5.7%, rounding out the top five.
In some coastal markets, typical rents have surpassed $3,000. According to the Zillow Observed Rent Index (ZORI), New York City is the most expensive rental market with a typical rent of $3,472 across the metro area, while StreetEasy® data shows the median asking rent in Manhattan is $4,400. Following closely is the San Jose metro area, with a typical rent of $3,429, then Boston at $3,127, San Francisco at $3,119, and San Diego at $3,083. Los Angeles, with a typical asking rent of $2,975, may join that list later this summer if the current rent growth trend continues.
Nationally, the typical rent is $2,054, according to ZORI, reflecting a 3.5% increase from last year and marking the fastest annual growth since last July 2023.
