On average, rents increased 5.45% over the last year, exceeding the inflation rate during the same time. But some areas saw much steeper increases than others – up to a 63% hike.
To find out where rent increased the most, SmartAsset examined the most recent available data to understand the rental market in 2023 when compared with 2022.
Key Findings
- Rent increased by more than 30% in these cities. Located in the Hamptons, rents in Amagansett, NY are up 63% year over year, most of any city. Oxford, MS; Orinda, CA; and Saint Pete Beach, FL saw rent increases of 37%, 36% and 30%, respectively.
- The most expensive places to rent cost up to $43,000 per month. Several neighborhoods in the Hamptons cost most and Malibu, CA rent averages $16,000 per month. Meanwhile, the Florida neighborhoods of Palm Beach, Key Biscayne and Bal Harbour range from $6,900 to just under $13,800 per month.
- San Francisco rents rose only 1%, while New York City still beat inflation. The average San Francisco rent only increased by $37 from 2022 to 2023 – though it’s still one of the most expensive rents at $3,460. New York City rents average $3,602, up $191 from last year.
- Statewide, Florida rents exceeded inflation, while Texas rents kept pace. Florida rents increased by 6.4%, compared to a 4.05% inflation rate over the same period. Meanwhile, Texans experienced an average 4.2% – just about matching inflation. New York and California saw larger extremes, with New York at a statewide 8.8% increase and California at just 3.6%
- Rent actually decreased in these high-cost California cities. Wildomar, CA had the highest rent decrease in the state at 6.1%. Rosemont, Elk Grove, Beverly Hills, Salinas, Thousand Oaks, San Roman and Lincoln rents also decreased between 2022 and 2023, despite their typically high prices.
Where Rent Increased the Most
- Amagansett, NY
The price of rental housing jumped 63% from 2022 to 2023 to a whopping $43,370 per month. Amagansett, along with other Hamptons neighborhoods, has some of the highest rental prices in the nation. The typical home value here is over $3 million. - Oxford, MS
Oxford is one of the more affordable cities where rent has increased most. The average rent in May 2023 was $1,660. Still, it increased over 37% ($450 per month) since the same time in 2022. Homebuyers can expect an average home value of $287,000. - Orinda, CA
This suburb of San Francisco is relatively pricey for rental housing – the average rent is $5,411. This is up from $3,983 last year, marking a nearly a 36% hike. A typical home is worth over $2 million here. - Saint Pete Beach
Saint Pete Beach saw a 30.43% increase in rent year over year. While it sat at $2,162 in May 2022, it has jumped $658 on average since then. The typical home value here in May 2023 is about $700,000. - Auburn Hills, MI
Auburn Hills is one of the two Michigan cities that make the top 10 – the only midwestern state to show up in those ranks. The rent increased by 29.70% from $1,041 in 2022 to $1,351 just one year later. On average, it’ll cost roughly $250,000 to buy a home. - Rocky Mount, NC
Rocky Mount offers the lowest rent in the top 20 places with the biggest rent increases. It averaged $1,095 in May 2023, but still jumped 24.62% in the past year. Homes here cost an average of $188,000, which is roughly up by 10% in the past year. - Haddonfield, NJ
Haddonfield rent averaged $1,736 in May 2023, which is 24.23% higher than in May 2022 ($1,397). The average home price in this Philadelphia suburb is $660,000. - Roseville, MI
North of Detroit, Roseville rents increased by $243 year over year, or 23.20%. The average rent in May 2023 was $1,294. Home prices here average $157,000. - Englewood, FL
Englewood rents went up by 22.87% in the last year. What averaged $1,661 in 2022, now costs $2,042. Home values, meanwhile, are actually down 1% over the same time, averaging $396,000. - Liverpool, NY
Liverpool rents averaged $2,147 in May 2023, jumping 22.44% from $1,754 last year. Home values rose by 5.4% over the same time to $230,000.
Data and Methodology
Rental data comes from Zillow’s Zillow Observed Rent Index (ZORI). We compared data from May 2022 and May 2023 that was smoothed and seasonally adjusted for all homes plus multifamilies. Complete data was available for 1,835 U.S. cities.
Housing Tips
- Consider the benefits of renting. If you’re thinking buying a home, renting may actually be the better financial option. SmartAsset’s rent vs. buy calculator can help you compare the costs of renting vs. buying in a particular area so you can make an informed financial decision. The tool will tell you how many years you’ll need to live in your home to make buying the preferred choice.
- Shop around for interest rates. If you choose to buy, SmartAsset’s mortgage rate comparison tool shows you the rates currently being offered for both 15- and 30-year fixed rate mortgages, as well as different kinds of adjustable rate mortgages. Be sure to shop around for the best possible rate and do your due diligence before picking a lender.
- Talk with an advisor. A financial advisor can help you set a budget, save for a down payment and ensure your home purchase aligns with your overall financial plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.
Questions about our study? Contact press@smartasset.com.
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