In a record year for inflation that has seen prices for food, gas, and housing skyrocket, some cities have seen rent prices decrease, despite most of the country seeing costs increase.
According to a new report from Rent.com, cities in the South and Midwest are rising quicker than the national average as residents from the East and West coast flee to new parts of the country trying to find more affordable housing.
Because of the migration patterns, cities like Raleigh, North Carolina, and Indianapolis, Indiana, saw a rent increase of more than 15% in November compared to a year ago, the report found.
This is almost double the national average, which saw an increase of 7.4%, according to the data in the report.
Jon Leckie, a researcher for Rent.com, shared with CBS News that cities in the midwest and south are becoming hot commodities.
“We can tell that, in general, renters are leaving the Northeast, and they’re leaving the West for places in the Midwest and South,” Leckie told CBS. “There’s price correlations to that. When you have that increase of demand, that’s going to push your prices up.”
States that are seeing Americans leave in mass exodus include New York and California, where rent prices remain sky high, according to the moving company PODS.
For example, Rent.com lists the median monthly rent price in New York City at $4,100 a month and $3,415 a month in Los Angeles.
Meanwhile in Indianapolis the average price is $1,500 a month, and in Raleigh it’s $2,100, according to the report.
Rising mortgage rates have also played a massive role in demand for rentals rising, as would-be home-buyers are deciding to wait for calmer waters, according to Leckie. This includes people who sold their homes, opting to not buy another.
The cities that saw the largest increase for rent from November 2021 to now includes Raleigh at 21.9%; Oklahoma City, Oklahoma, at 17.9%; Indianapolis at 15.8%; Cleveland, Ohio, at 14.9%; Nashville, Tennessee, at 14.8%; Salt Lake City, Utah, at 13.9%; and Pittsburgh, Pennsylvania, at 12.4%.
However, not all cities in the midwest and the south are seeing prices rise, as a number of cities are seeing declines in rent costs, according to Rent.com.
Leading in rent decreases includes Milwaukee, Wisconsin, at a 13.1% decrease; Houston, Texas, at 6.3%; Austin, Texas, at 5.3%; Baltimore, Maryland, at 4.4%; Minneapolis, Minnesota, at 4.2%; and Chicago, Illinois, at 3.8%.
Rent.com found that the median rent price in the U.S. rose to $2,007 a month throughout the last year, while it rose from $1,983 a month in October.
In the coming months, rent prices are expected to remain high, but the rent monitoring site shared that prices should eventually level off or drop by mid-2023.
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