Prices continue to drop and rise across the board as inflation remains near all-time highs, but rent remains one price that continues to increase in all but one state.
According to a report from Rent.com, while rent climbed nationwide in July compared to a year ago, prices for a one-bedroom apartment in Idaho fell by 19%.
While every other state saw an increase in rent prices, several cities saw prices fall in July. Residents of Anaheim, California; Baltimore, Maryland; Fort Lauderdale, Florida; St. Louis, Missouri; and Glendale, Arizona, all saw the average cost of a one-bedroom apartment drop last month.
Across the nation, rent prices have soared by almost 40% for one-bedroom and two-bedroom units, according to Rent.com. With the average rent for a one-bedroom hitting $1,770 and $2,106 for a two-bedroom, some parts of the U.S. are seeing rent prices costing more than ever.
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One reason for the increase in rent is the current housing market. Homebuyers deciding to wait for greener pastures have found themselves needing housing and entering the rental market, trying to avoid rising mortgage rates.
Idaho was one of the hottest housing markets when the pandemic first began. Many Americans sought shelter in the state, leaving behind crowded cities. The increase in residents resulted in an increase in housing throughout the state.
However, unlike most of the country, Idaho's rental market is now cooling, and Zillow chief economist Skylar Olsen shared with CBS News that "it feels like it's slowing down more than the nation."
Another reason rent prices are high is the addition of Gen-Zers and younger millennials joining the rental market, according to Olsen.
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Bank of America recently released a study that showed Gen-Z renters are facing the highest rent increases, as baby boomers' median payments rose 3% compared to last year, and the younger generation increased 16%.
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