Rent in NYC, Jersey City jumped nearly 50% in 2021: report
(NEXSTAR) - In the 50 largest U.S. metro areas, median rent rose an astounding 19.3% from December 2020 to December 2021, according to a Realtor.com analysis of properties with two or fewer bedrooms.
Data from the Labor Department shows rental costs rose 0.5% in from December 2020 to January 2021 – that's the largest single-month increase in 20 years.
Experts say many factors are responsible for astronomical rents, including a nationwide housing shortage, extremely low rental vacancies and unrelenting demand as young adults continue to enter the crowded market.
Cities with top increase, decrease in rent prices
Rent.com analyzed rent price trends for the 100 largest cities. Rent is rising in most of these areas. While Idaho and Rhode Island were the states most impacted by rising rent, no cities from either appear in the top five of those seeing a major year-over-year price change.
These five cities have seen the greatest year-over-year increases in the average one-bedroom rent prices:
- Gilbert, Ariz. (+108.5%)
- Long Beach, Calif. (+55.7%)
- Huntington Beach, Calif. (+49.2%)
- Jersey City, N.J. (+46.6%)
- Austin, Texas (+45.1%)
Alternatively, these five cities have seen the largest decreases:
- Toledo, Ohio (-27.6%)
- Kansas City, Mo. (-21.6%)
- Indianapolis (-9.7%)
- Atlanta (-9.6%)
- Miami (-9.2%)
When it comes to the average rent for two-bedroom units, these five cities have had the most substantial price increases:
- New York City (+49.9%)
- Fresno, Calif. (+44.3%)
- Aurora, Ill. (+41.2%)
- Salt Lake City (+40.3%)
- St. Petersburg, Fla. (+39.5%)
Meanwhile, these five have seen the largest price drops:
- Shreveport, La. (-28.6%)
- Kansas City, Mo. (-25.3%)
- Lincoln, Neb. (-18.6%)
- Wichita, Kan. (-18.1%)
- Durham, N.C. (-14.0%)
Rent.com notes states and cities with insufficient inventory were not included in this report, which you can view in full here.
In a recent report, Zumper predicted rent will continue to rise through 2022, especially because of low supply but strong demand.
The Associated Press contributed to this report.