These 5 US cities will have the highest rent prices in 2023

There are many reasons why people choose renting over owning. This year, the rising mortgage rates pushed many would-be buyers to go back to renting. Although homeownership remains an essential part of the American Dream, more Americans find renting to be a better fit for their current lifestyle. 

Renting gives people more flexibility when it comes to choosing where and how to live. However, as the demand for rental units increases, the prices go up. The annual report from Zumper named the five most expensive US cities to rent in 2023. New York City climbed to the top of the list, while the other four spots were claimed by Jersey City, Boston, San Francisco, and Miami in no particular order. 

New York City ranked no. 1 among the priciest rental markets in the country after taking this spot away from San Francisco for the first time since 2014. The city went through a slowdown in the early months of the pandemic but quickly regained its title as one of the most desirable places to live. In 2022, more people moved to the New York area than before the pandemic. 

“New York is woefully undersupplied and unable to absorb all the people who want to live there, creating fierce competition for available rentals,” the report says. 

The influx of new residents and the limited supply of available housing units pushed rents to skyrocket. The median rent for a one-bedroom apartment in this city reached $3,740 per month. In addition, more than 44 percent of NYC-based renters who participated in Zumper’s annual survey said they had to submit five or more applications before signing a lease. 

San Francisco held the title of the most expensive city to rent for the past six years. Now, it shares second place with Boston. The median one-bedroom apartment in both of these cities has an asking price of about $3,000 per month. 

Although New York City tops the list of the most expensive rental markets in the country, nearby cities, such as Jersey City, Union City, and West New York, are also seeing an increase in demand from renters. These cities appeal to remote workers who no longer have to commute to New York by offering more affordable options. 

Another popular destination among renters who decided to move during the pandemic is Miami. Many of those who migrated to Florida two years ago chose to stay. In 2022, this city became the fourth priciest rental market in the country, with a 19 percent annual increase in its median rent. 

Resources:

“Annual Rent Report 2022,” (Zumper, 2022)

“The 5 U.S. cities expected to have the highest rent prices in 2023,” by Mike Winters (CNBC, 2022)