SEATTLE, WA — While coastal markets like New York City, San Francisco, and Boston remain the priciest for renters, new data from Zillow reveals that the fastest-growing rents are emerging in less expected locations. Hartford leads the pack with the highest rent growth, closely followed by Cleveland and Louisville.
Skylar Olsen, chief economist at Zillow, attributes this trend to shifting dynamics in the rental market. “More people move during the summer, which causes the rental market to heat up,” said Olsen. “Renters are being drawn to more affordable areas within the Northeast and Midwest. Commuting into New York City or Boston from places like Hartford or Providence might have been a deterrent before, but in this new age of remote and hybrid work, the savings seem worth it for many renters, even if it means an occasional painful commute.”
Hartford has seen rents increase by 7.8% over the past year, the highest among major markets. Cleveland follows with a 7.2% rise, while Louisville reports a 6.8% increase. Providence and Milwaukee also see significant growth, with rents up 6.3% and 5.7%, respectively.
Despite these shifts, coastal cities still dominate as the most expensive rental markets. New York City tops the list with a typical rent of $3,472 across the metro area, according to the Zillow Observed Rent Index (ZORI). In Manhattan, StreetEasy data shows the median asking rent is even higher at $4,400. The San Jose metro area ranks second with typical rents at $3,429, followed by Boston ($3,127), San Francisco ($3,119), and San Diego ($3,083). Los Angeles, with a typical rent of $2,975, could soon join this list if current rent growth trends continue.
Nationally, the typical rent stands at $2,054, up 3.5% from last year. This marks the fastest annual growth since last July, reflecting broader changes in the housing market.
These findings highlight how remote and hybrid work models are transforming the rental landscape, drawing renters to more affordable yet increasingly popular markets. The evolving preferences of renters suggest that these trends could continue, reshaping where people choose to live and work.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.