According to a new report from Realtor.com®, the median rent in June for the 50 largest cities in the U.S. was $1,743, $7 less than in June 2023. Nevertheless, not all places are seeing rent decreases. Some cities in the Midwest and the South are experiencing continuous rent increases, becoming focal points for renters.

In the Midwest, the rental market saw significant year-over-year growth in June. Indianapolis had the largest increase, with rents rising by 4.4% from a year ago to $1,353 per month. Milwaukee followed closely, with rents up 3.7% year-over-year in June, reaching $1,717 per month. Minneapolis also saw a 3.7% increase in rents, now at $1,549 per month. These cities' rising rent trends indicate increasing rental demand in the Midwest, driving up rent prices.

Southern cities experienced particularly significant rent increases during the COVID-19 pandemic. Tampa, Florida, saw the largest rent increase since the pandemic began. In June, the median rent in Tampa was $1,752, a 39.5% increase from 2019. This means that a family now needs to pay an additional $496 per month to rent a zero-to-two-bedroom apartment. Another Southern city, Miami, also saw substantial rent increases, rising by 39.2% since 2019, or $673 per month. The rent increases in Southern cities are mainly due to a large influx of people into these areas during the pandemic, leading to a booming rental market.

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Indianapolis is not only one of the cities with the most recent rent increases but also one of the fastest-growing rental markets in the Midwest over the past five years. In June, the median rent in Indianapolis was $1,353, a 37.5% increase from before the pandemic. This means that, compared to five years ago, a family in Indianapolis now needs to pay an additional $369 per month to rent a zero-to-two-bedroom apartment. This rent growth reflects the economic vitality and increased rental demand in the Midwest.

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In the Northeast, Pittsburgh is one of the fastest-growing rental markets over the past five years. In June 2024, the median rent in Pittsburgh was $1,484, a 37.4% increase from 2019, or $404. Analyst Xu Jiayi pointed out that this trend may be due to many people leaving expensive New York during the pandemic and opting for relatively affordable cities. In contrast, Pittsburgh's relatively affordable rents attracted more renters, maintaining stable rental demand.

In the West, Sacramento, California, experienced the fastest rent growth over the past five years, with an increase of 35.8%. This means renters now need to pay an additional $529 per month. Xu Jiayi stated that Sacramento's proximity to expensive San Jose and San Francisco in California, along with relatively lower rents, helped it maintain growth during this period. Sacramento's rent increases not only reflect its geographical advantages but also showcase its economic appeal and vibrant rental market.

Looking back over the past few years, most cities with rising rents are located in areas with rapid economic development and significant population influxes. These cities have strong rental market demand, driving continuous rent increases. In the future, as the economy further recovers and population movements change, rent trends may continue to show regional differences. Renters need to consider rent levels, living costs, and employment opportunities when choosing a place to live.