Housing being the largest expense for most households in the US, you can imagine that many eyes are on the cost of housing. Inflation has been rampant on rental prices and it's likely to not end soon.
Inflation and Rent Costs
Rent prices tend to lag behind the market by 6 months to a 1 year. This means that we haven't seen the end of increasing rent prices. Households generally spend around 30% of their income on rent and that number is being threatened. Average Rent prices have been released and its not looking good for renters.
2022 average renters pay $1,326 per month
Most states have seen a devastating 10% increase in rent costs. Five of the states that have been affected the most be increases are: Utah, Arizona, Tennessee, New York, and Nevada.
States with highest rent
- Hawaii coming in with average rent at $2,399 per month.
- California costs the average renter $1,844 per month.
- District of Columbia average rent cost is $1,785 per month.
- Florida average is $1,686 per month.
States with the lowest rent
- West Virginia average rent is $725
- Arkansas average rent is $745
- South Dakota average rent is $747
- Kentucky average rent is $763
Google Search Query Numbers
Google search term for "houses for rent near me" has seen a huge increase over the last year. This is yet another indicator that people are looking for cheaper housing and are trying to find a solution to increasing rent problems.
What is the median cost of rent per state
These numbers are averages and medians. Certain locations within each state will have much higher rent. The cost of rent in more rural areas will lower the average and median pricing. That being said it still is a strong indicator that planning for rent increases should be a part of your financial plan. Data was scraped from World Population Review.