Rent prices are inching up again, but only slightly. According to the Apartments.com January 2024 Monthly Rent Report, rents grew by 0.7% in January, compared to the 0.1% increase in December 2023. However, it’s the slowest increase since mid-2020. Overall, rent prices are lower than they were in January 2023, when they were up by 3.6%. Despite being minimal, these rent hikes could be indicative of what’s to come in 2024. Market data indicates that rents will increase overall this year, largely due to a slowdown in the construction of new apartment buildings, which should lead to fewer vacancies.
Rent Prices Fall in the South, but Climb in the Midwest
While the national average for rent growth was 0.7%, things might look quite different depending on where you live. In the Midwest, rent is up 2.8%, a significant increase over December 2023, when rent increased by just 0.4%. On the flip side, rent in the South fell by 3.6%, a much larger decrease when compared to December’s -0.2%.
In the Northeast, rent prices slowed slightly but were still up by 2.3%. The rent prices in the Northeast are being led by Northern New Jersey, which had the second-largest rent increase in January, up 3.5%. The only area with a larger increase was Louisville, Kentucky, where rents rose 3.6%. The sharpest drop in rent prices took place in Orange County, California. Last month, rent prices in Orange County increased by 3.9%, the largest increase of any market. However, in January, this area saw the biggest rent decline, with rent prices falling 1.3%.
Cities with the Biggest Rent Increases
Last month, the cities with the largest rent increases were Louisville, Kentucky; Cincinnati, Ohio; and Chicago, Illinois. While Louisville had the largest rent increase in December, it falls to third in January, topped by San Francisco, California and Richmond, Virginia. And while rent prices are down overall in the South, there is one exception: Fort Lauderdale, which saw rents increase enough to place it in the top five cities with the biggest rent increases.
Here are the five cities with the biggest rent increases for January 2024:
- Richmond, Virginia (0.9%)
- San Francisco, California (0.8%)
- Louisville, Kentucky (0.8%)
- San Jose, California (0.8%)
- Fort Lauderdale, Florida (0.8%)
Cities with the Biggest Rent Declines
The Sun Belt continues to be the big story, with rents declining in several Southern states. Last month, Austin, Texas saw the sharpest drop in rent prices, down 5.1%. They’re still in the top five, but another Texas city saw a larger drop in January. Interesting to note, three of the top five cities with the biggest rent declines were in Texas.
Here are the five cities with the biggest rent declines for January 2024:
- San Antonio, Texas (-0.2%)
- Austin, Texas (-0.1%)
- Philadelphia, Pennsylvania (0.1%)
- Atlanta, Georgia (0.0%)
- Dallas, Texas (0.0%)
Looking Ahead: Higher Rent Prices Are on the Horizon
A few key factors will impact rent prices this year. First, we're seeing a surge in demand for apartments. Pair that with the slowing pace of construction, and it’s likely that the vacancy rate will stabilize. However, there are five cities where construction is still humming along, which could keep their rent prices in check. These cities include Miami, Charlotte, Austin, Nashville, and Raleigh. But even so, Miami saw its rent jump by 0.5% in January, and Charlotte's rent edged up by 0.2%. Nashville wasn't spared either, with rent prices climbing by 0.5%. As for Raleigh? Well, the rent prices there nudged up just a bit, by 0.1%.
Current Rent Prices Across the US
Want to see what rents are doing where you live? Here’s a look at current rent prices in cities across the country:
|
City |
Current Average Rent |
Last Month’s Average Rent |
Year-Over-Year Difference |
|
$2,225 |
$2,209 |
+3.09% |
|
|
$1,548 |
$1,548 |
-5.50% |
|
|
$1,444 |
$1,434 |
-7.01% |
|
|
$3,309 |
$3,297 |
+0.48% |
|
|
$1,563 |
$1,562 |
+0.38% |
|
|
$2,644 |
$2,639 |
+1.37% |
|
|
$1,700 |
$1,677 |
-0.71% |
|
|
$1,415 |
$1,412 |
-3.19% |
|
|
$1,778 |
$1,752 |
+0.42% |
|
|
$1,026 |
$1,025 |
+1.44% |
|
|
$1,301 |
$1,291 |
-1.79% |
|
|
$1,068 |
$1,059 |
-0.27% |
|
|
$1,357 |
$1,354 |
-2.26% |
|
|
$1,672 |
$1,656 |
-0.54% |
|
|
$2,133 |
$2,115 |
-0.76% |
|
|
$1,222 |
$1,215 |
-2.85% |
|
|
$3,495 |
$3,487 |
+0.89% |
|
|
$1,639 |
$1,638 |
+0.74% |
|
|
$1,149 |
$1,146 |
-0.62% |
|
|
$1,039 |
$1,037 |
+0.71% |
|
|
$2,831 |
$2,884 |
+4.10% |
|
|
$1,279 |
$1,273 |
-3.50% |
|
|
$2,942 |
$2,940 |
-1.21% |
|
|
$1,117 |
$1,108 |
+0.57% |
|
|
$1,241 |
$1,238 |
-2.08% |
|
|
$1,714 |
$1,706 |
+0.13% |
|
|
$2,078 |
$2,069 |
-1.47% |
|
|
$1,364 |
$1,351 |
+3.72% |
|
|
$2,043 |
$2,021 |
+1.25% |
|
|
$1,099 |
$1,070 |
+1.23% |
|
|
$1,315 |
$1,306 |
+0.22% |
|
|
$1,595 |
$1,578 |
-4.02% |
|
|
$3,689 |
$3,653 |
+1.20% |
|
|
$1,548 |
$1,544 |
-3.78% |
|
|
$1,642 |
$1,637 |
-0.61% |
|
|
$1,311 |
$1,303 |
-2.93% |
|
|
$1,262 |
$1,255 |
+0.21% |
|
|
$1,455 |
$1,457 |
-2.49%$ |
|
|
$2,320 |
$2,318 |
+2.36% |
|
|
$1,339 |
$1,353 |
-5.22% |
|
|
$1,301 |
$1,289 |
+0.55% |
|
|
$1,481 |
$1,466 |
-1.17% |
|
|
$1,041 |
$1,026 |
+0.39% |
|
|
$1,073 |
$1,076 |
-3.49% |
|
|
$2,234 |
$2,231 |
-1.92% |
|
|
$2,813 |
$2,789 |
-0.36% |
|
|
$2,457 |
$2,439 |
-0.01% |
|
|
$1,981 |
$1,972 |
+0.39% |
|
|
$1,585 |
$1,576 |
-1.62% |
|
|
$2,223 |
$2,199 |
+0.64% |
How Current Rent Prices Impact Renters
With rentals in higher demand and the number of new units available, rent prices are beginning to rise in many places across the US. However, not every city will see prices rise. Some cities, particularly those in the Sun Belt, could see prices decline a bit more before they head in the other direction. If you are planning to move soon, you’ll want to watch the rent trends in your area since they could impact your budget. By comparing the rental prices in this report with those from December and November, you can determine the overall rent trend in your area. To compare rent prices across the US, visit the US Rent Trends page, where you’ll find the most current rent prices available based on CoStar data.
