The Top 5 U.S. Metropolitan Areas with the Highest Single-Family Rents: 3 of Them Reside in California
According to a new report, despite only slight year-over-year growth, Americans are feeling the impact of the high cost of single-family rentals.
Rental prices surged during the pandemic and are expected to remain elevated as many Americans are hesitant to buy new homes due to soaring mortgage interest rates, as revealed in the second-quarter report from national real estate brokerage HouseCanary.
The report analyzed standalone properties known as single-family detached listings. The metro areas in California dominated the highest median rent rankings, while those around the Sun Belt were more affordable.
Although annual inflation slowed to 3% in June, primary residence rent continued to put pressure on many Americans, standing at 8.3%, according to the U.S. Bureau of Labor Statistics.
Top 5 U.S. metro areas with the highest monthly rents:
- Los Angeles; Long Beach, California; Anaheim, California: $4,984
- San Diego; Carlsbad, California: $4,862
- Naples, Florida; Immokalee, Florida; Marco Island, Florida: $4,821
- Bridgeport, Connecticut; Stamford, Connecticut; Norwalk, Connecticut: $4,750
- San Jose, California; Sunnyvale, California; Santa Clara, California: $4,629
Top 5 U.S. metro areas with the lowest monthly rents:
- Little Rock, Arkansas; North Little Rock, Arkansas; Conway, Arkansas: $1,267
- Montgomery, Alabama: $1,394
- Birmingham, Alabama; Hoover, Alabama: $1,441
- Louisville, Kentucky; Jefferson County, Kentucky and Indiana: $1,492
- Cleveland, Ohio; Elyria, Ohio: $1,506
A recent survey from moving website HireAHelper found that approximately 40% of Americans are considering moving in 2023, with financial pressures being one of the top motivations.
However, financial experts advise caution regarding unexpected expenses. According to certified financial planner Michael Hansen, co-founder and managing partner of Frontier Wealth Strategies in Walnut Creek, California, one of the most underestimated hidden costs is job hunting. While moving to a cheaper state to work remotely may sound tempting, it may not be feasible for your next role. It is crucial to consider the job market and potential in-person opportunities in your new city before making the move.
“While there may be a monetary saving, it is important to consider the potential loss in terms of connection, collaboration, and community,” stated Eric Roberge, a Certified Financial Planner (CFP), who recently relocated back to Boston from a more affordable area.
Roberge, the founder of Beyond Your Hammock, a financial planning firm, emphasized the intangible value of spending time with one’s community, stating, “Even though it may not be easily measurable or trackable like a budget spreadsheet, being in the company of your peers holds significant worth.”