Rental costs have increased significantly throughout much of the United States since 2017, with many cities and states seeing the biggest uptick from 2021 to 2022.
Credit Karma studied data from the online rental marketplace and research hub Apartment List to identify changes in rent at the national, state and city levels from 2017 to 2022. Then we ranked the cities and states based on two factors:
- The change in rent from 2021 to 2022
- The average year-over-year rent increase from 2017 to 2022
You can check out our full methodology here.
Based on our review, the five states with the highest average increase from 2021 to 2022 are:
- Florida
- Tennessee
- South Dakota
- New York
- North Carolina
On the flip side, the five states with the lowest average increase in rent from 2021 to 2022 are:
- Minnesota
- Idaho
- North Dakota
- Hawaii
- Iowa
Looking at individual cities, Naples, Florida topped the list with the biggest increase. Meanwhile Lake Charles, Louisiana landed at the bottom of the list, with a decrease in rent from 2021 to 2022.
Keep reading to learn more about where rents are rising the most (and least), plus how the type of accommodations you choose can affect how much you pay.
Credit Karma Stat Snapshot
Average nationwide year-over-year rent increase from 2017 to 2022:
5.77%
State with the highest rent increase from 2021 to 2022:
Florida
State with the lowest rent increase from 2021 to 2022:
Minnesota
City with the highest rent increase from 2021 to 2022:
Naples, Florida
City with the lowest rent increase from 2021 to 2022:
Lake Charles, Louisiana
Average rent increase from 2021 to 2022 for one- and two- bedroom apartments:
24.2%
Key findings on rent increase
Check out the table below to see our ranking of rent increases by state from 2021 to 2022 (the state with highest increase is ranked No. 1). Note: Data weren’t available for Montana, Vermont or West Virginia, so we left them off the list.
| Rank | State | 2021–2022 Rent change |
|---|---|---|
| 1 | Florida | 22.59% |
| 2 | Tennessee | 18.61% |
| 3 | South Dakota | 18.41% |
| 4 | New York | 18.23% |
| 5 | North Carolina | 18.00% |
| 6 | Rhode Island | 17.69% |
| 7 | New Jersey | 17.32% |
| 8 | South Carolina | 16.87% |
| 9 | Alaska | 16.41% |
| 10 | Utah | 16.32% |
| 11 | Arizona | 15.83% |
| 12 | Delaware | 15.73% |
| 13 | New Mexico | 15.25% |
| 14 | Wyoming | 15.07% |
| 15 | Georgia | 14.98% |
| 16 | New Hampshire | 14.30% |
| 17 | Massachusetts | 14.15% |
| 18 | Texas | 14.04% |
| 19 | Washington | 13.83% |
| 20 | Indiana | 13.78% |
| 21 | Oklahoma | 13.73% |
| 22 | Nevada | 13.69% |
| 23 | Kentucky | 13.58% |
| 24 | California | 13.52% |
| 25 | Maine | 13.23% |
| 26 | Ohio | 12.66% |
| 27 | Arkansas | 12.51% |
| 28 | Colorado | 12.39% |
| 29 | Kansas | 12.38% |
| 30 | Virginia | 11.95% |
| 31 | Alabama | 11.81% |
| 32 | Connecticut | 11.72% |
| 33 | Oregon | 11.09% |
| 34 | Michigan | 11.09% |
| 35 | Pennsylvania | 10.74% |
| 36 | Nebraska | 10.69% |
| 37 | Illinois | 10.62% |
| 38 | Mississippi | 10.33% |
| 39 | Wisconsin | 10.26% |
| 40 | Maryland | 9.36% |
| 41 | District of Columbia | 8.99% |
| 42 | Louisiana | 8.82% |
| 43 | Missouri | 8.45% |
| 44 | Iowa | 7.53% |
| 45 | Hawaii | 6.90% |
| 46 | North Dakota | 6.34% |
| 47 | Idaho | 6.22% |
| 48 | Minnesota | 5.93% |
Florida saw the biggest increase in rent from 2021 to 2022 likely due to a combination of factors. Rental inventory in the state reached its lowest level in at least 16 years in the fourth quarter of 2021. Plus, there was an influx of new residents throughout 2021 and the first half of 2022, driving up demand for housing in the state.
At the bottom of the list was Minnesota, with an increase of just 5.93%, despite having relatively low vacancy rates.
It’s also worth noting that the increase in rent from 2021 to 2022 was identical for one- and two-bedroom apartments at 24.2%. The average monthly cost of a one-bedroom apartment increased from $941 to $1,169 from January 2021 to June 2022, while the cost of a two-bedroom apartment increased from $1,093 to $1,339.
Average rent increase over the years
From 2017 to 2022, the average year-over-year increase in rent was 5.77% nationwide, with the biggest increase occurring from 2021 to 2022 at 14.07%. Although rents have risen in nearly every part of the country, some states were hit harder than others.
| Highest average annual rent change (%), 2017–2022 | Lowest average annual rent change (%) 2017–2022 |
|---|---|
| Idaho | District of Columbia |
| Maine | North Dakota |
| Arizona | Louisiana |
| Nevada | Iowa |
| New Mexico | Minnesota |
Nineteen states had increases above the average, with Idaho and Maine experiencing average annual double-digit increases of more than 10% since 2017. The District of Columbia on the other hand had an average annual increase of only 0.69% — and North Dakota and Louisiana had increases of 1.17% and 1.79%, respectively.
But while the District of Columbia had the lowest average annual rent increase, it remains one of the priciest places to live in the country. The average rent is $1,830 — the third highest in the nation behind Hawaii and California.
And while Idaho had the biggest jump from 2017 to 2022, Idaho rents are in the middle of the pack compared to other states, coming in at $1,280.
Top 5 states with the highest rent increase
Credit Karma used rental data from Apartment List to identify the states and cities with the highest and lowest rent increases from 2021 to 2022.
| State | 2021–2022 Rent change (%) |
|---|---|
| Florida | 22.59% |
| Tennessee | 18.61% |
| South Dakota | 18.41% |
| New York | 18.23% |
| North Carolina | 18.00% |
Three of the states with the largest increases in rent are in the South, with one in the Northeast and one in the Midwest. Although geographically diverse in location, all of these states experienced declines in rental inventory throughout 2021 and early 2022, with vacancies remaining low today.
Top 5 states with the lowest rent increase
| State | 2021–2022 Rent change (%) |
|---|---|
| Minnesota | 5.93% |
| Idaho | 6.22% |
| North Dakota | 6.34% |
| Hawaii | 6.90% |
| Iowa | 7.53% |
All the states on this list except Hawaii are in the Midwest or West. North Dakota has one of the highest vacancy rates in the United States, which may explain why it experienced one of the lowest rent increases in the country. Surprisingly, the remaining states on this list have relatively low levels of rentals available.
Top 5 cities with the highest rent increase
| Cities | 2021–2022 Rent change (%) |
|---|---|
| Naples, Florida | 33.89% |
| West New York, New Jersey | 32.20% |
| Ocoee, Florida | 32.05% |
| Coral Gables, Florida | 31.63% |
| Knoxville, Tennessee | 29.93% |
With Florida and Tennessee topping the list of states with the biggest rent increase from 2021 to 2022, it’s unsurprising that four of the five cities with the largest change in rent are in these two states.
The fifth — West New York — is in New Jersey, a state with a high cost of living, where the average rent is $1,788 — the fourth highest in the country. While New Jersey didn’t make our top five list of states for the highest rent increases, it did come in at number seven.
Top 5 cities with the lowest rent increase
| Cities | 2021–2022 Rent change (%) |
|---|---|
| Lake Charles, Louisiana | -16.10% |
| Lexington Park, Maryland | -0.64% |
| Sparks, Nevada | 0.43% |
| Rocklin, California | 0.69% |
| Spokane, Washington | 0.77% |
The cities with the lowest increases aren’t located in states that experienced the smallest rent increases, although Louisiana and Maryland are in the bottom 10.
Three of the cities on the list are in the West, while one is in the Mid-Atlantic region and the other is in the South.
Rent increase by apartment type: 1 bedroom vs. 2 bedroom
Unsurprisingly, a two-bedroom apartment will cost you more than a one-bedroom apartment nationwide. But interestingly, the increase in rent for one- and two-bedroom apartments was identical at 24.2%.
The average rent of a one-bedroom apartment rose from $941 in January 2021 to $1,169 in June of 2022, and the average rent of a two-bedroom apartment rose from $1,078 to $1,339.
Conclusion
Rental rates aren’t the only expense that’s increased in the last year. Prices for consumer goods and services rose across the board as inflation reached its highest level in 40 years in June 2022.
There’s no way to know for sure when or if rents will decrease. And since rates can vary significantly based on location, different areas may experience different pricing trends. But there are two key factors that are likely to affect how much renters will continue to pay.
- Supply and demand. In general, rents tend to be higher in areas where demand is high and lower in places where demand is low.
- Mortgage rates. Rising mortgage rates may price would-be homebuyers out of the market, creating even more demand for rentals. If that happens, rental rates may continue to increase.
Tips and resources for finding a good deal on rent
As the cost of rent spikes throughout much of the country, it may seem impossible to find a good deal on a rental. But there are a few ways to save. Here are some tips to help you slash the amount you pay.
- Get a roommate (or two). Splitting the cost of your rental will allow you to keep more of your hard-earned money.
- Improve your credit. Lenders aren’t the only businesses that check your credit. Landlords do, too, and having poor credit may limit your rental options.
- Sign a long-term lease. Typically, when your lease is up, your landlord has the right to raise your rent. Locking in a lengthier lease could help prevent frequent price increases.
- Stick to the essentials. An on-site gym, pool and clubhouse may be nice, but they can drive rents up.
Rent vs. buy calculator
Find out if it makes more financial sense for you to buy a home or rent one with our rent vs. buy calculator.
Methodology
To identify average rent increases nationwide and in states and cities, we reviewed Apartment List rental data from 2017 to 2022. Then we ranked cities and states by both rent growth from 2021 to 2022 and average year-over-year growth from 2017 to 2022.