Rental prices are going down nationally, but some states may not be seeing that decline just yet.
In January, rent prices fell 1.9% compared to the month earlier with the median cost of rent at $1,942, according to the real estate website Rent.com. But there are some states that haven’t seen a slowdown with rental prices continuing to rise by double digits compared to a year earlier. Some renters may be forced to find ways to help pay rent as prices increase.
But which states are still seeing hot rental markets? Here are a few to watch, according to Rent.
Alabama saw a 12.5% increase in rent for January compared to the same month a year earlier. That increase came despite the Birmingham area noting a 3.42% decline in rent prices year-over-year. Alabama residents can expect to pay a median rent of $1,151.
The Volunteer State has seen a 12.75% jump in rent for January compared to January 2022. One reason for the increase may be the Nashville metro area, which is among the top 10 cities with the biggest year-over-year increases. The area saw a 9.83% rise in rents compared to a year earlier, according to Rent.
North Dakota has seen an increase in rental prices with a 14.07% rise in January 2023 compared to January 2022. The state also saw a 4.51% increase from a month earlier in rental prices, which may have contributed to getting the state in the top 10 for rent increases.
New York continues to see rent increases with a 14.81% rise in January compared to a year earlier. The state has the highest rent on this list with the state seeing a median rent price of $2,582 in January.
Delaware saw a 15.62% year-over-year increase in January compared to January 2022 and a 0.47% increase as well from December to January. The median cost in the state is $1,830 for renters. The First State is a popular destination for retirees who are relocating, which may account for the rising cost of rent.
Rent continues to go up for Arkansas residents with a 16.50% increase in January versus a year earlier. And month-to-month rates are also going up, with a 1.91% rise in prices in January compared to December. Renters in the state should expect to pay a median rent of $1,013.
Like its Dakota neighbor to the north, South Dakota is experiencing a rent increase with 17.43% in year-over-year rental prices. But there may be some good news: prices declined 0.97% in January compared to a month earlier.
New Hampshire is the only New England state in the top 10, coming in with an 18.39% increase in rent in January compared to a year earlier. The state also saw a 1.59% rise in prices from December to January. If you rent there, expect to pay a median rental price of $1,867.
Mississippi saw an 18.57% increase in rent prices in January compared to January 2022, which may be spurred on by a 2.77% rise in prices in January compared to December. The median price for rent in the state now stands at $1,104.
Florida had the highest increase in rent for any state in the U.S. with prices rising 19.74% in January compared to a year earlier. Five of the top 10 cities where potential buyers were recently searching for homes are in the state of Florida, according to the real estate website Redfin.
The desire for housing in Florida could be pushing rental prices higher as more people consider moving to the Sunshine State. Residents may have to find ways to fight inflation in housing costs as they continue to rise.
It can be tough to live in an area where rent prices are continuing to rise and you wonder what to do if you’re scraping by.
If you’re considering moving to a state where housing is expensive, be sure to create a budget that takes the local cost of living into consideration. You may need to find a side hustle to make some extra cash to pay for rent. You also might want to consider moving to a more affordable place in order to get your rent price down.