Top 10 Cities Where Rent Prices Are Soaring

Rent prices

Source: Zillow

Landlords across the nation are being shown record amounts of money. Due to strong demand and inadequate supply, rent prices continue to climb higher across the nation. In fact, even cities not typically known for high rents are spreading concerns of a rental affordability crisis.

Renters should prepare for another solid year of rising prices. In January, U.S. rent prices increased 3.3% year-over-year to a fresh all-time high, with the median monthly rent price reaching $1,350, according to new research from Zillow. Out of 859 individual metro areas covered by the Zillow Rent Index, 72% experienced annual rental growth, while 247 metros had growth of 5% or more. Adding insult to injury, Zillow believes rental affordability will continue to deteriorate for at least the next two years.

“Steadily rising rents, coupled with stagnant wages, are both helping to erode rental affordability and making saving for a down payment more difficult as tenants devote an increasing portion of their incomes to rent payments each month,” explains Zillow. “Unlike home values, which experienced a dramatic fall at the onset of the Great Recession and have largely yet to get back to pre-crisis levels, rents have largely kept chugging upward since 2000. High rental demand, both from families displaced by foreclosure during the crisis who were forced to turn to the rental market and from younger renters moving into their first apartments and staying in them longer, is also driving rents up.”

Historically, Americans making the national median income could expect to pay about 25% of their income on a typical apartment. Now, they should expect to pay roughly 30% of their income, and even more in some areas. Let’s take a look at the top 10 cities where rent prices are soaring.

Source: Thinkstock

Source: Thinkstock

10. Hartford, Connecticut

  • Annual rent growth: 6.0%
  • Median monthly rent price: $1,642

MLADEN ANTONOV/AFP/GettyImages

MLADEN ANTONOV/AFP/GettyImages

9. Charlotte, North Carolina

  • Annual rent growth: 6.1%
  • Median monthly rent price: $1,235

Source: Thinkstock

8. Austin, Texas

  • Annual rent growth: 7.0%
  • Median monthly rent price: $1,657

Source: Thinkstock

Source: Thinkstock

7. Portland, Oregon

  • Annual rent growth: 7.2%
  • Median monthly rent price: $1,587

Source: iStock

6. Birmingham, Alabama

  • Annual rent growth: 7.6%
  • Median monthly rent price: $1,052

Rick Diamond/Getty Images

5. Nashville, Tennessee

  • Annual rent growth: 7.9%
  • Median monthly rent price: $1,347

Source: Thinkstock

Source: Thinkstock

4. Kansas City, Missouri

  • Annual rent growth: 8.5%
  • Median monthly rent price: $1,214

Doug Pensinger/Getty Images

3. Denver, Colorado

  • Annual rent growth: 10.2%
  • Median monthly rent price: $1,827

Source: Thinkstock

2. San Jose, California

  • Annual rent growth: 13.4%
  • Median monthly rent price: $3,190

Source: Thinkstock

1. San Francisco, California

  • Annual rent growth: 14.9%
  • Median monthly rent price: $3,055

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