Rising Rent: New Analysis Highlights Steep Rental Increases Across U.S.
Nearly 1 out of 8 U.S. tenants saw their rent go up by at least $250 in the last year, according to our analysis of August data from the U.S. Census Bureau. Learn how rent in your state compares to the rest of the nation.
- Nearly one in eight tenants in the U.S. had their rent increase by at least $250 per month over the last year.
- More than 30% of renters in Florida experienced a rent increase of $250 or more per month in the past year, which is the highest rate in the nation.
- In 21 states, monthly rent has eclipsed $1,500 for at least one out of four tenants.
Rent and other essential living costs are on the rise across the U.S., and tenants in some states are experiencing a more dramatic surge than others.
Using August 2022 data from the U.S. Census Bureau Household Pulse Survey, we examined which states and major cities are being hit the hardest by increasing rents among residential properties.
More than 60% of Americans are living paycheck to paycheck, but our analysis found more than 7.2 million renting Americans have seen their rent increase by at least $250 per month over the last 12 months.
More than one out of four renters in Florida, Nevada and Montana have watched their rent increase by at least $250 between July 2021 and July 2022. Those rates are in stark contrast to tenants in Oklahoma, West Virginia, Wyoming and Missouri, where fewer than 3% of renters experienced such an increase during the same time.
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More than 12% of renters in Florida had their rent increase by at least $500 per month in the past year. Nearly 10% of tenants in Colorado experienced the same, and a little more than 4% nationwide.
With rent prices surging across the U.S., almost one out of three renters are currently paying at least $1,500 for their apartment or home.
In California, New Jersey and Hawaii, more than half of all renters are paying at least $1,500 per month for their dwelling.
In 15 states, at least one out of three tenants are paying $1,500 or more in rent, and in 21 states at least one out of four tenants pay at least $1,500 per month in rent.
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The share of tenants paying at least $1,500 per month in rent climbs even higher when the focus is narrowed to major American cities.
In San Francisco, more than seven out of 10 renters are paying at least $1,500 per month. In Miami and Seattle, the percentage of renters paying at least that much is double the national average.
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The reasons for such steep increases in rent are varied, and likely even more so from one state to the next.
For starters, only six states and Washington D.C. have any sort of rent control laws on the books. While a lack of rent control does not lead to rising rent by itself, it opens the door for rent to increase for a myriad of reasons.
It’s worth noting that rent control doesn’t necessarily protect everyone. The three areas with statewide rent control, Oregon, California and Washington D.C., each ranked near the middle of the study with between 8% and 11% of tenants reporting a rent increase of $250 or more within the past year.
The Great Relocation
The remote work era accelerated by the COVID-19 pandemic led to a mass migration of many workers looking to relocate, which in turn caused a flurry of demand in the rental market. Landlords, many of whom were still recovering financially from the pandemic, capitalized on the demand.
Most workers who relocated were likely to be higher-earning employees who could afford a steeper rent, further playing into the market swing.
Thanks to sunny beaches and no state income tax, Florida was among the states that gained the highest number of new residents in 2021, which can help explain the state’s surge in rental prices. A 1977 state law in Florida bans rent control.
Supply Chain Issues
Lingering supply chain issues that added to price inflation for many goods also affected the rental market. Supply chain snags involving lumber and other key materials contributed to a new housing shortage, which in turn kept would-be buyers in the rental market and contributed to lopsided supply and demand.
In some cities and states, fewer than 3% of all rental units are vacant and available, tilting the market in favor of landlords and driving up prices.
High Interest Rates
Interest rates on a 30-year fixed rate mortgage have more than doubled in the last 12 months, causing some prospective buyers to pause their house hunting. That’s also squeezed the supply of available rental units, thus driving up costs as supply fails to keep up with demand.
In short, the demand for affordable housing currently outstrips supply. Housing costs are a major contributor to inflation, so the problem with affordable housing supply has had a widespread effect on the economy.
Some additional findings from our study include:
- 8.2% of tenants receiving government rental assistance experienced a rent increase of $250 or more in the last year.
- Nearly 60% of tenants who experienced an increase of at least $250 in the last year are age 39 or younger. Of all renters between the ages of 18 and 39, 30% had their rent increase by at least $250 in the last year.
- Of all tenants who experienced a rent increase of at least $250 in the last year, 67% do not have a bachelor’s degree.
33% of renters who have used money from a savings account or other asset or possession to meet spending needs in the last seven days have also experienced a rent increase of at least $250 in the past year.
Millions of U.S. tenants have experienced a rent increase of at least $250 over the last 12 months. The reasons for rent increases are varied and may weigh differently from one state to the next.
The data used for this report came from the U.S. Census Bureau Household Pulse Survey, specifically Week 48 (July 27 through Aug. 8, 2022), the most recent data available.