Cities Where Rent Prices are Actually Going Down

Rental prices, like housing prices, have been increasing across the board. But a few cities may finally be seeing some relief.
Last updated Aug. 25, 2022 | By Jenny Cohen | Edited By Ellen Cannon
miniature wooden houses and down arrow

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There may be signs that the white hot housing market is starting to cool down.

As the Federal Reserve raises interest rates, the number of people who are planning to buy a home has started to decline. Mortgage applications have decreased recently, and the average purchase loan size is around $415,000 now compared with a high of $460,000 in March, according to the Mortgage Bankers Association. That may be some relief for potential buyers who have been looking for ways to make extra money for the down payment on their dream home.

Signs that the housing market is declining may also be making waves in the rental market, which is seeing a drop in prices in some markets. Here are a few cities to watch if you’re looking for more affordable rent prices.

Miami, Florida

littleny/Adobe Miami Florida skyline and bay at sunset seen through palm trees

Miami may be hot in the summer, but rental rates have started to cool down in the city. Places like Miami saw an increase in renters due to its appeal to more remote workers, but that influx is showing signs of slowing. A one-bedroom in the Florida city costs around $2,400, which is down 5.9% in June compared with a month earlier. A two-bedroom rental is also down around 6% from a month earlier with a median price of $3,290.

San Diego, California

Jasongeorge/Adobe empty San Diego beach during Covid-19 Pandemic

Another warmer city that has seen some declines is San Diego. That may be due to the hot California market that has started to go down again as interest rates are going up. A one-bedroom in San Diego will set you back $2,320, which is a 6.1% decline in the past month.

Cleveland, Ohio

SeanPavonePhoto/Adobe Cleveland Ohio USA

Cleveland saw an increase in its population during the pandemic as more people moved closer to the Midwest city. But prices are starting to fall again, with a one-bedroom costing a median of $1,150, down 1.7% in June compared with May, according to Zumper. A two-bedroom apartment has seen a deeper decline with a 5.6% drop to $1,170.

Anchorage, Alaska

Jacob/Adobe aerial View of a Sunset over Downtown Anchorage Alaska in Spring

Anchorage may be more expensive than you think due to its higher cost of living compared with other places in the United States, and housing factors into that high cost.

But Anchorage has also seen a decline in rent recently with a one-bedroom going for $1,060, representing a 6.2% drop in June compared with May. A two-bedroom price has declined 6% to $1,250 compared with a month earlier.

Honolulu, Hawaii

Maridav/Adobe Honolulu city view from Diamond Head

Living in a tropical paradise does have some downsides, such as high housing costs. Luckily, Honolulu residents have started to see a drop in median rent prices.

You can now move into a one-bedroom apartment for a median price of $1,530, which is a 6.1% decline in June compared with May. A two-bedroom apartment also has fallen in price and is now around $2,050, which represents a 6% decline.

Syracuse, New York

littleny/Adobe downtown Syracuse New York with view of historic buildings and fountain at Clinton Square

Syracuse had an influx of population during the pandemic as residents from bigger cities like New York were able to work from home in smaller and more affordable towns. But that increase also caused a rise in rental rates as demand went up.

Things seem to be cooling down in Syracuse now. A one-bedroom rental in Syracuse is coming in at $930, which is a 6.1% decrease in June compared with May.

Denver, Colorado

Matt/Adobe Union Station Denver Colorado

Denver has seen a dramatic increase in population for the past few decades, which has contributed to a rise in housing costs. But the market seems to be slowing down a bit.

A one-bedroom apartment now costs a median price of $1,760 in May, which was flat compared with a year earlier.

Nashville, Tennessee

4kclips/Adobe huge guitars at Grand Ole Opry

Nashville’s population continues to grow, which may be contributing to its rising housing costs. But it’s also seen a drop in rental prices recently for both one-bedroom and two-bedroom rentals.

You can now pick up a one-bedroom for a median price of $1,690, which is a 2.3% drop in June compared with May. A two-bedroom now costs $1,750, marking a 2.8% drop compared with a month earlier.

Baltimore, Maryland

Tierney/Adobe Inner Harbor of Baltimore, Maryland

Baltimore’s proximity to the D.C. area may make it an appealing place to live, but rental prices might have been a turn-off for some potential new residents.

Prices, however, are starting to come down in Charm City. A one-bedroom now costs a median $1,330, which represents a 5.7% drop in June compared with May. Meanwhile, the cost of a two-bedroom rental declined 3.1% to $1,550 in June compared with a month earlier.

Durham, North Carolina

Billy McDonald/Adobe office center of The American Tobacco Historical District Durham North Carolina

Like other cities on this list, Durham has seen growth in the past few decades as more people move to the area. But that move has also led to increased housing costs.

The good news for Durham is that the market for a one-bedroom apartment is starting to slow down, and potential residents can get one for a median price of $1,200. That represents a 4.8% decline in June compared with May.

Pittsburgh, Pennsylvania

Aevan/Adobe Roberto Clemente Bridge in downtown Pittsburgh Pennsylvania USA

The Pennsylvania metropolis of Pittsburgh saw a decline in its population post-pandemic, which may be contributing to the drop in housing costs as competition eases.

If you want a one-bedroom apartment, expect to pay $1,200, a price that has stayed flat in June compared with the previous month. A two-bedroom apartment costs a median price of $1,440, declining 1.4% in June compared with May.

Boise, Idaho

OLya_L/Adobe landscape of the Boise river in Idaho in the fall.

Boise is a city that saw a tremendous increase in housing costs during the pandemic as people moved out of more populous areas. In fact, Boise’s home prices rose a whopping 53% from May 2020 to May 2022, reaching a median price of $550,000, according to Redfin.

And while rent prices are still increasing, the amount of increase has slowed, and you can get a one-bedroom apartment for $1,500 in the city.

Bottom line

d_odin/Adobe piles of coins and a wooden house

There are several factors playing into the current rental market that could make it more affordable for you in the coming months, depending on where you live or where you might be considering a move. But this could be a great way to figure out how to pay your rent and still live the lifestyle that you want.

Do your research on different options to make your monthly payments more manageable. Depending on how rent prices are declining in your area, you may be able to get a good deal if you move.

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Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.