California and Florida metros collectively account for 80% of the top 10 highest average rents across the country, forcing Americans to look to the middle of the country for affordable rentals.
That’s according to HouseCanary’s first National Rental Report, which compares listings volumes, new listings, and median listing price information on single-family detached listings from H1 2021 and H1 2022.
National rent prices saw a double-digit increase, up 13.4% YOY in the first half of 2022. At the end of H1 2022, the average rent was $2,495.
Property demand remained strong, with the number of days on the market staying basically the same from last year. At the end of H1, rentals were on the market for an average of 21 days, one day longer than H1 2021.
“HouseCanary’s new report highlights that throughout the first half of 2022, the rental market seems to remain impervious to a slowdown,” said Chris Stroud, Co-founder and Chief of Research at HouseCanary.
“Nationwide single-family detached listings continue to elicit strong demand across the country despite rent prices experiencing a double-digit increase year-over-year.”
California and Florida led the country in the highest median rent prices for the first half of this year. Of the ten metros with the highest rents, eight were in these two states. The Los Angeles-Long Beach-Anaheim metro statistical area took first place with an average monthly rent of $4,664.
The Midwest, on the other hand, saw the lowest median rents but also increased market activity. Ohio has four of the ten metros with the lowest rents, alongside Michigan, Indiana, Illinois, and Wisconsin.
As a result, these states have become popular real estate markets. People in cities like Chicago, New York, and Atlanta have flocked to the interior of the country in search of affordable housing.
“Our analysis suggests that while coastal regions such as Florida continue to remain popular following the pandemic, renters are beginning to turn their attention towards regions such as the Industrial Midwest that offer both sufficient supply and affordability many people are seeking in the current market conditions,” said Stroud.
Renters continue to engage in bidding wars as Americans struggle to find affordable places to live.
“Renters are being left with few options but to meet higher rents and, in some cases, even offer above asking — whether they can afford to or not,” Realtor.com Chief Economist Danielle Hale said in a statement this month.
Renters should take comfort in that, despite record-high selling prices, renting is still significantly less expensive than purchasing in most American cities.
It was cheaper to rent than buy in 38 out of the 50 largest metros in June.
Story idea? Email Editor Kimberley Haas: [email protected]