Have you ever wondered why your rent is the price that it is? Let’s explore how rent is calculated, how you can find the average rent in any city, why your rent can increase, and how to negotiate your rent with your landlord.
How Rent Is Determined
A wide variety of factors go into setting a rental rate. Location, availability, demand, and landlord expenses are just some of reasons rent can fluctuate from city to city. Your landlord has certain costs to cover, such as the property’s mortgage payment, taxes, and insurance. Other costs could include utilities, maintenance, and larger repairs.
Location is a major factor when determining rent. If you’re considering apartments in the city, you can expect to pay more because there is higher demand for homes in that area. If you look in more suburban neighborhoods, you’ll likely see lower rent prices because apartments aren’t snapped up as quickly. Demand is influenced by location and availability. If there are fewer apartments to choose from in an area, demand is higher, and rent may be higher as a result.
If you’re looking to move and want to do some local rental research before you begin your apartment search, you can find the average rent in any city on Apartments.com.
How to Find a City's Average Rent
You can find the average rent for any city on Apartments.com’s Rent Trends page. Our Rent Trends page outlines the average monthly rent by floor plan and details the average rent in the United States and all 50 states. Navigate to our Rent Trends page, search for the city you’re interested in, and dive into the data from there. Our Rent Trends page also shows the most affordable, available, and expensive neighborhoods in different cities, making it easier to search for apartments based on what’s important to you.
If you’re moving from one city to another, you can use our Cost of Living Calculator to compare the cost of living across cities in the United States. Our Cost of Living Calculator can help you prepare financially for a city-to-city move and determine your budget.
Why Rent Prices Fluctuate
Demand for apartments isn’t always steady, and neither are rent prices. For example, summer is peak moving season because school is out, the weather is nice, and most leases end in the summer. Higher demand for apartments during the summer will drive up rent prices. Conversely, the winter months have lower demand as fewer people move due to weather and the holiday season. As a result, rent prices may drop in winter.
When demand for apartments is lower, some apartment communities will offer rent concessions to attract new renters. If you have your eye on your dream apartment but it’s slightly out of your budget, wait until February or March to see if the price drops. If you’re looking for a time of year that’s just right to rent, fall can be one of the best times to rent an apartment.
Why Your Rent Increases
If you’ve lived in your apartment longer than a year, then you’ve probably renewed your lease at least once. When you were invited to renew your lease, you may have noticed that your renewal included a rent increase. It’s common for apartment communities and landlords to raise the rent at the start of a new lease for several reasons.
If rents are trending up in your area, your landlord or property manager will want to stay competitive and adjust by raising the rent. Typically, landlords can only raise rent when the current lease term ends. If rent prices increased during the year you were living there, you may see a rent increase at the beginning of your new lease term.
Another factor to consider is property taxes. Your landlord has no control over this amount, which is set by the local government. If property taxes increased over the last year, your landlord may raise the rent to cover higher costs. Property renovations can also lead to higher rent prices. If your rental needs a new roof or your apartment building recently remodeled the lobby, rent increases can help cover these costs.
If the rent in your apartment is increasing at renewal, you can visit our Rental Affordability Calculator to determine whether you can afford the new monthly rent based on your income. It’s important to think about your budget when deciding whether to move or renew your lease.
What Is a Rent-Controlled Apartment?
A few states have laws in place concerning how much and when rents can increase. In a state with these laws, there’s a limit to the amount the landlord can charge for rent. These laws also limit the frequency and timing of those rent increases. The purpose of rent control laws is to keep apartments affordable in areas where rent prices tend to be unaffordable due to supply and demand.
These nine states have rent control laws:
Rent control is different from affordable housing. Most states do offer affordable housing programs, but you must qualify for affordable housing to participate in certain programs. Affordable housing is determined by your income and the Area Median Income of where you live. If your income is below the median income, you might qualify for affordable housing.
There are several different affordable housing programs, including the Housing Choice Voucher Program, subsidized housing, and public housing. In addition to federal programs, your state or local government may offer additional assistance finding affordable housing.
Rent Increases and When to Negotiate
You now know some of the factors that influence your monthly rent and why your rent might increase at renewal. You can compare the new rental rate with similar apartment communities in your neighborhood and determine if it makes more sense to move or renew.
If you want to renew your lease but the increase is too high for your budget, you could try negotiating with your landlord. If they are receptive to negotiating, be willing to compromise. Perhaps consider a longer lease term in exchange for a smaller rent increase. If you are unable to negotiate and need to move, knowing how to find the average rent in your new city or neighborhood, along with how rental rates can change throughout the year, can help you find a great apartment within your budget.
This article was originally published on May 13, 2020 by Alecia Pirulis and has been updated.
Find a Rental Within Your Budget on Apartments.com
If you are looking for a new apartment and have a set budget, start your search on Apartments.com. On Apartments.com, you can search for available apartments by your desired minimum and maximum monthly rent, making it easy to find an apartment that works for you and your budget. Search smarter and with confidence using Apartments.com.
FAQs
Is location a major factor in how much an apartment costs?
Yes, location is a major factor than can affect apartment rent. An apartment located in downtown or the city center is going to be more expensive than a unit located in the suburbs because of renter demand, availability, and access to amenities and transportation.
How can I find the average apartment rent in a city?
You can find the average apartment rent in a city by visiting the Apartments.com Rent Trends page. In addition to monthly rent, you can browse cost of living data and neighborhood information for that city.
Is living in a rent-controlled apartment better than not?
Rent control is attractive to many renters because it helps keep rent affordable in cities and areas that are usually more expensive, like Washington D.C. or New York. Before you decide if a rent-controlled apartment is right for you, it's important to do your own rental research and assess your budget, income, and housing needs.
