Overview

1. Compared to this time last year, rent prices are 5% lower — creating the rare situation in which renting is actually cheaper than buying due to raised interest rates and steep home prices.
2. The Midwest is bucking the national cooling trend; of the seven cities in the country that saw year-over-year rent hikes higher than 10%, four are in the Midwest.
3. On top of that, the Midwestern states that have had cooling rent prices have seen smaller decreases than the rest of the country. The Northeast is right there with them.

National Trends

Rent prices are cooling off.

• The national median price of a one-bedroom apartment dropped by 1.7% from October to November.
• For five months in a row — so, from July to November — we have seen a year-over-year decrease in rent.

Home prices are heating up.

• Both rent and home prices saw a pandemic-induced surge between 2021 and 2022. However, homebuying prices are only rising, while rent prices have cooled off.
• Right now, homebuyers can expect to pay 23% more for a property than they would have two years ago. Meanwhile, the median price is just 1% higher than it was this time of year in 2021.

Regional Trends

The Northeast

• The three most expensive cities in the country — New York City, NY; Jersey City, NJ; Boston, MA — saw increases in rent month-over-month. Meanwhile, nos. 7–10 of the most expensive cities saw decreases.
• On the state level, Maine had the greatest year-over-year increase in rent prices at 19%. In November, it was the 16th most expensive state to rent.

The Midwest

• Four Midwestern cities — Fargo, ND (25%); Madison, WI (12%); Grand Rapids, MI (12%); Akron, OH (11%) — saw some of the steepest year-over-year rent increases in the country.
• The Midwest is not benefiting from the same rent cooling trends that we are seeing across the rest of the country. When compared to the national average, eight out of 13 Midwestern states saw smaller rent decreases year-over-year: North Dakota, South Dakota, Iowa, Illinois, Wisconsin, Michigan, Indiana, and Ohio.

The Bottom Line