Startling rise in rent prices in major cities across the US as Americans struggle to keep up
Rents have skyrocketed in major US cities as Americans struggle to keep up with costs.
Two metropolitan cities where demand for one-bedroom rental properties was highest over the past five years between 2019 and 2024 were Phoenix, Arizona (84 percent) and San Diego, California (41 percent).
The Fair Market Rent (FMR) is the amount for which a home would be rented on the market and is a benchmark for measuring rent.
An analysis by Loan tree Data from the U.S. Department of Housing and Urban Development (HUD) shows that prices have increased significantly in each of the country’s 50 largest metropolitan areas since 2019.
On average, market prices for one- and two-bedroom rental properties increased by $450 and $505, respectively, but the most notable percentage increase occurred in Phoenix.
Pictured: An aerial view of the skyline in downtown Phoenix, Arizona, where the cost of a one-bedroom rental home has increased 84 percent over the past five years
Rents in San Diego have increased by 41.38 percent, to a staggering $2,248
New York: The Big Apple saw a 53.28 percent change in FMR for a one-bedroom rental compared to 2019
Lending Tree provides a graphical analysis of the dollar increase in one-bedroom FMR based on rent
To put that in perspective, in 2019, the real market rent for a one-bedroom apartment in Phoenix was $868. That’s a whopping $731 difference from the current, higher average of $1,599.
In San Diego, the market rate rent for a one-bedroom home in 2019 was $1,590; now it is $2,248, up $658.
New York, Miami, Seattle, Sacramento, Atlanta, Tampa, Orlando and Denver also saw dramatic increases over the past five years.
The largest price increase for a one-bedroom rental of any metro area on the list was in New York, where the price rose $852 over five years, followed by $737 in Miami.
Following Phoenix in third place, it was Seattle that rose 45 percent from $1,557 to $2,269.
The map shows the cities where rents have increased the most
The rent for a one-bedroom apartment has increased by 64.25 percent since 2019
According to the data, Seattle experienced a 45.73 percent price increase for one-bedroom rental units
In Atlanta, market-rate rents rose 70.8 percent from 2019 to 2024
The average price for a one-bedroom apartment in Sacramento dropped from $968 to $1,666
Sacramento came in second, with the average price for a one-bedroom apartment increasing from $968 to $1,666.
In sixth place was Atlanta, where the price rose by a whopping 70 percent to its current price of $1,643.
After San Diego, which finished in seventh place, it was Tampa that went from $916 to $1,562 in those five years.
Orlando and Denver were ranked ninth and tenth on the list, respectively.
The rent for a one-bedroom apartment in the Florida city rose a whopping 63 percent in those five years, from $1,004 to $1,638.
In Denver, which attracted many West Coast transplants, the price went from $1,204 to $1,835.
In Tampa, the average rate for a one-bedroom apartment increased 70.52 percent from 2019 to 2024, to a current total of $1,562
The average rent for a one-bedroom apartment in Orlando increased 63 percent in those five years — from $1,004 to $1,638
Meanwhile, Denver, which has seen an influx of West Coast transplants, went from $1,204 to $1,835
The lack of available housing is one of the reasons why rents have risen so much.
Experts explain that the price is based on supply and demand. If there is a shortage of houses and the demand is greater, then the prices will rise.
According to LendingTree, renters are at a disadvantage when it comes to negotiating a better deal with landlords because there are fewer choices and more limited options.
But drastic rent increases may eventually become a thing of the past.
The Biden administration previously announced a 5 percent cap on rent increases, which would apply to landlords with more than 50 units.