With the onset of the COVID pandemic, rent prices have surged, a pattern that has persisted over time. Following the Federal Reserve’s choice to hike interest rates multiple times, the rising trend of house and rent prices has decelerated on a national scale, and certain states, such as Florida, have experienced a notable drop in rent prices over the past year.
However, rents in specific states are still on an upward trajectory. A recent study indicates that rents in Michigan, New Hampshire, and Mississippi have seen significant jumps last year, with increases in the double digits, placing them among the states with the highest rent hikes.
Average rent prices in the U.S. have decreased
A new study shows median rent prices in the United States have been declining since August of 2023, but rent prices continue to remain well above what they were this time last year. Rent.com published its January 2024 rent report, highlighting which states and major metropolitan areas are seeing increases or declines in rent prices year-over-year and month-over-month.
The study found that in most places, the cost to rent a home is going down, but it’s still more expensive than it was a year before in a lot of areas.
Rent.com study findings
Rent prices across the country kept going down in December, with a slight drop of less than 1% compared to last year. This small decrease of 0.78% is the third time in a row that we’ve seen rents fall when looking at the year-over-year numbers.
The drop in December was less than what we saw in previous months. Rent prices fell by 2.09% in November and by just under a third of 1% in October compared to the year before.
Rents have been going down each month too, with December being the fourth month in a row to see a decrease. The fall from November to December was only -0.1%. The rent decrease from month to month was 0.11%, which is less than the -0.57% drop we saw from October to November, and much less than the over 2% drop from August to September.
Right now, the average cost for an apartment is $1,964. The highest rent prices got was in August 2022, hitting $2,054. The rent in December was slightly lower than in November, down by 0.1%, with November’s rent being $1,967. This makes December the third month in a row where the average rent was under $2,000.
Since the start of the pandemic, rent prices have jumped 23%, adding $371 to the monthly cost. This increase is at an annual rate of 5.8%, which is still higher than what it was before the pandemic.
Rent prices in Michigan
In Michigan, rent prices went up quite a bit between January 2023 and January 2024, by 12.47% from the year before. There was also a small bump in rent from one month to the next, by 0.17%. The average rent in Michigan is now $1,507.
The study tracked regional rent prices between the Northeast, West, South and Midwest. While the Midwest has the lowest median prices, it is the only region that hasn’t seen a continual decline in prices over the last few months.
Rent.com also kept an eye on rent prices in the biggest 50 cities, including Detroit. Detroit is 12th on the list for how much rent prices have gone up over the year, with a 4.45% increase since January 2023. The average rent in Detroit is $1,671.
Top 5 states with largest increase in asking rents, year-over-year
- Mississippi: +14.67%
- New Hampshire: +12.81%
- Michigan: +12.47%
- Minnesota: +11.65%
- North Dakota: +10.76%
Top 5 states with largest decrease in asking rents, year-over-year
- Florida: -9.21%
- Idaho: -5.76%
- Oregon: -5.08%
- Washington: -4.04%
- Utah: -4.01%