In the U.S. total, rent costs increased by a median of 5.5% in the last 12 months. But in some cities, they went up much more.
In the posh Hamptons enclave of Amagansett, New York, rent surged by 63% for the 12 months ending May 2023 — the highest enhance amongst all 1,865 cities examined by financial technology company SmartAsset.
That’s adopted by cities where renters skilled value will increase of 20% or extra. Many of those locations are additionally sizzling actual property markets where rent will increase have adopted rising residence costs over the previous few years.
Here’s a take a look at the prime 10 cities where rent has grown the most:
With common month-to-month rental prices of $43,370, Amagansett has the most costly rent costs in the U.S., in line with SensibleAsset knowledge. This largely displays the unique nature of the small East Hampton city, where beachside mansions routinely promote for tens of thousands and thousands of {dollars}.
It’s residence to many celebrities, together with Alec Baldwin and Sarah Jessica Parker. A house owned by Parker was just lately listed as a summer-long rental for $95,000.
Second in the rankings is Oxford, a university city in Mississippi, where common rent costs have climbed by 37%. Oxford isn’t a celeb hotspot like Amagansett, nonetheless; it has a comparatively low common rent of $1,660, as of May 2023. Its latest surge in rent costs follows steadily rising residence costs, which have increased by nearly a third in the last three years.
In third place is Orinda, California, a rich suburb close to San Francisco, which already has considered one of the most costly rental markets in the nation.
The checklist additionally consists of cities in Florida, which noticed an inflow of Americans when the pandemic unfold in 2020. As a end result, there are fewer homes available than there have been in 2019, which has led to larger residence costs in many Florida cities. In flip, rent costs have steadily increased throughout that point as effectively.
SensibleAsset’s research in contrast knowledge from May 2022 with knowledge from May 2023 utilizing the Zillow Observed Rent Index for all sorts of properties that included as much as 5 rooms.
DON’T MISS: Want to be smarter and extra profitable along with your cash, work & life? Sign up for our new newsletter!
Get CNBC’s free Warren Buffett Guide to Investing, which distills the billionaire’s No. 1 finest piece of recommendation for normal buyers, do’s and don’ts, and three key investing rules into a transparent and easy guidebook.