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Where you choose to call home often comes down to the price of rent. If you’re planning to relocate to a different state—or are just curious about what your neighbors on the other side of the border are paying—looking at the average rent price can give you a better sense of what you can expect to pay.
Using rental market data from Apartment List, we’ve mapped out the most expensive and affordable states to rent in the U.S.
Average Rent by State
The average national rent price in the United States is $1,372, according to August 2023 rental market data from Apartment List.
State and Average Monthly Rent
States With the Most Expensive Rent
States with temperate climates, dense populations and competitive housing markets tend to have higher rent prices. The most expensive states in the nation are all located in coastal regions.
1. Hawaii
This tropical paradise has the most expensive average rent at $2,418 per month for several reasons. First, the median price for a single-family home is now over $1 million thanks in part to a housing shortage across the islands and a thriving tourism-based economy. In turn, rent rates and condominium prices have been driven up too.
Additionally, the cost of living is higher than on the mainland as most necessities need to be shipped in. Further, the State of Hawaii Department of Taxation reports that its citizens have the second-highest income tax burden in the nation. These factors cause landlords and property managers to charge more to offset business expenses and tax liability.
2. California
There are many desirable coastal and inland cities that spark strong demand and higher living costs in the Golden State. The California housing market is also costly partially due to a housing shortage in high-demand metros. These are reasons why the state has the highest average rent in the contiguous United States at $1,958 per month.
The good news is that housing supply has been steadily improving. Statewide multifamily building permits totaled 106,00 from 2021 to 2022, which is higher than the two-year average of 71,000 over the past 30 years. An influx of rental supply plus reduced demand is helping lower rent in most California markets as the average monthly rent in the state fell $49—or 2.4%—year-over-year.
3. District of Columbia
The nation’s capital is a historically expensive place to pay rent for a variety of reasons including a high cost of living and above-average salaries. The Washington, D.C. housing market is also very competitive because of short supply.
Another recent factor is that property owners are raising rent to offset lost income from increased vacancy rates and rent increase prohibitions during the pandemic. While the District is one of the most expensive cities to rent in, it’s approximately 5% cheaper than many surrounding communities in Virginia and Maryland, Apartment List reports.
4. New Jersey
New Jersey renters feel the squeeze from several corners as the Northeast tends to have higher housing and general living costs than the rest of the country. Sharing a border with New York City and Philadelphia, two expensive metropolitan areas, contributes to the problem.
Further, the Garden State has the country’s highest property tax rates, reports ATTOM in its 2022 Property Tax Analysis. The effective tax rate in New Jersey is 1.79% compared to the national average of 0.83%, which landlords often pass onto tenants through monthly rent.
5. Massachusetts
In addition to New England’s above-average living costs, Massachusetts has a competitive housing market with limited inventory, high demand and many residents with disposable income.
The Boston rental market is notably pricier than the rest of the state, with an average price of $2,177 versus the statewide average of $1,811. High rent costs are leading to the potential passage of a rent control ballot measure on the November 2024 ballot. If passed, cities and towns in Massachusetts can limit rent and fee increases for the first time since 1994.
States With the Cheapest Rent
The most affordable states are more likely to have rural populations and colder winters. These factors help keep rent costs low and cost of living down.
If you have a flexible budget and don’t mind snow or gray skies, living in one of these states could prove to be a huge bargain.
1. North Dakota
North Dakota has the most affordable rent in the nation, with an average price of $880 per month. In addition to cheap rent, the Peace Garden State has some of the country’s lowest utility prices thanks to a thriving energy industry. Its state and local taxes are reasonable as well.
This state is family-friendly and provides plenty of opportunities to explore the Great Plains. Bismarck, Grand Forks and Fargo are popular cities to live in as they offer residents plenty of amenities to enjoy throughout the year.
2. Iowa
This midwestern state is home to two of the best places for young professionals. The Des Moines-West Des Moines, IA and Omaha-Council Bluffs, NE-IA metro areas can be a great place to begin your career or start a family as you can stretch your income further.
The average rent in Iowa is $974, lower than neighboring states like Illinois ($1,303), Minnesota ($1,114) and Missouri ($1,050). This is thanks in part to the state’s smaller population and affordable housing.
3. South Dakota
South Dakota is an excellent option if you want to live somewhere without a state income tax and affordable living costs. The average monthly rent comes in at $977.
Rapid City provides easy access to the picturesque Black Hills and Mount Rushmore. It was one of the nation’s fastest-growing cities from 2021 to 2022, too.
Sioux Falls, the state’s largest city, also has competitive rent prices that remain below the national average. In fact, approximately 40% of the city’s population are renters but availability can be limited.
4. West Virginia
West Virginia is an ideal destination to enjoy the Appalachian Mountains with some of the country’s lowest housing costs. The average rent in the state runs $992 plus reasonable state and local taxes.
The state is also an appealing retirement destination primarily due to its affordability. However, residents of any age may find healthcare access difficult as quality is beneath the national average and medical insurance premiums are relatively high.
Related: Which States Don’t Tax Retirement Income?
5. Kentucky
Kentucky is one of the most affordable states in the southeastern United States as the average monthly rent is only $999. Louisville and Lexington tend to be the most appealing cities for renters as they have the largest populations, most amenities and vibrant economies.
The Cincinnati, OH-KY-IN metro area is also an excellent place for young professionals as Northern Kentucky can be more affordable to live in than across the river in Ohio. However, Cincinnati and Louisville each have seen a 2% year-over-year rent increase, which is one of the fastest rates for cities with a population below 1 million residents.
Are Rental Prices Increasing in the U.S.?
Future rent trends depend on the local market and region of the country. While rent rates remain near historic highs, prices are starting to come down in cities across the United States. That said, renting instead of buying still remains the more affordable option for many.
“A steady stream of demand should keep rental housing fundamentals [strong] for the remainder of the year,” said the National Apartment Association in a recent report. “Apartments remain a more affordable option in many markets across the country because of elevated mortgage rates (which recently hit a 20-plus-year high) and a persistently low supply of existing for-sale homes.”
New apartments are also being constructed at the highest levels since the 1970s. Approximately 1.1 million units are under construction with most units becoming available in major metro areas.
Where Is Rent Decreasing?
After rents increased sharply in most markets in 2021 and 2022 due to low vacancy rates, Apartment List found that August 2023 was the first month of negative rent growth since 2020. Specifically, the average national rent price declined by 1.2% year-over-year with 72 out of 100 metro areas seeing cheaper costs.
For example, major cities across California and Texas along with Sun Belt towns like Las Vegas, Nashville and Atlanta are experiencing the most substantial declines this year.
Reasons for cheaper rent vary by market but a common theme is that rents increased rapidly due to an influx of remote workers seeking temperate climates and cheaper living costs. Rent increases and demand are returning to pre-pandemic levels and markets are adjusting. An increase in newly-built apartments is easing inventory shortages in select markets as well.
Where Is Rent Increasing?
Rent is getting more expensive in the Midwest and New England, including some of the states mentioned on our list with the most affordable rental prices. Contributing factors include population growth, high core inflation and low housing inventory.
For example, North Dakota’s average rent is up 10.9% year-over-year while Iowa’s overall average increased 2.6% from August 2022 to August 2023.
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