Hartford, Connecticut is home to the Mark Twain House, America’s oldest newspaper, several major insurance companies, and some of the fastest-rising rents in the country.
According to online real estate brokerage Zillow, the typical rent in the Northeastern city jumped 7.8 percent year over year in July to $1,871 per month. The price spike is partly due to increased demand for rentals in the area, which many people now see as an affordable housing option with greater access to big-city employers than nearby areas like New York or Boston, Zillow said.
“Commuting from places like Hartford or Providence to New York or Boston may have been a barrier in the past, but in the new era of remote and hybrid work, the cost savings may be worth it for many renters — even if it means a sometimes painful commute,” Zillow Chief Economist Skylar Olson said in a statement.
According to the Zillow Observed Rent Index, New York City and Boston are among the most expensive rental markets in the country, with typical rents in those cities exceeding $3,000. The median rent in Manhattan is $4,400, according to StreetEasy.com data.
Renters Are Attracted to Northeastern and Midwestern Cities
The rental market has been brisk in recent months, with renters increasingly drawn to metropolitan areas in the Northeast and Midwest. This trend is driving up rents in those areas.
Here are Zillow’s top five fastest-growing rental markets:
- Cleveland, Ohio, $1,447/month – up 7.2% year over year in July
- Louisville, KY, $1,417/mo – up 6.8%
- Providence, Rhode Island, $2,118 per month – up 6.3%
- Milwaukee, Wisconsin, $1,394/mo – up 5.7%
Rents are skyrocketing nationwide as more Americans are forced out of the homebuying market by affordability, forcing potential buyers to stay in apartments longer than they would like. And as demand for rental housing increases, so do prices. According to Zillow, the typical rent nationwide today is $2,054 as of July, up 3.5% from a year ago.
Conversely, there are several cities across the country where rents are falling, mostly in Texas and Florida.
According to Redfin, rents in Florida’s metropolitan areas, including Jacksonville, Miami, Orlando and Tampa, fell between 12.5% and 4% year-over-year in June. Rents in Austin, Texas, are also starting to fall, according to the online real estate brokerage.
“If you’re a renter in Florida or Austin, it’s a great time to look for deals,” Redfin Chief Economist Sheharyar Bokhari said in a statement. “With so much supply in the market, renters can get concessions like free parking or discounted rent. But Florida renters should also be aware that landlords are struggling with skyrocketing home insurance costs, which could ultimately lead to renters being asked to pay for it through higher rents.”
