Rent Changes in the 50 Largest U.S. Cities – 2023 Study

By Patrick Villanova | SEPT 11, 2023

The average rent in the 50 largest cities in the U.S. increased 2.5% between July 2022 and July 2023, but some cities still saw multiples of that. Renting in many cities is still significantly more expensive than it was a few years ago – even when the price of buying a home in many of those places has fallen. 

To see where rent has increased most, SmartAsset examined the most recent available data and compared it with the same data from a year ago. 

Key Findings

• Boston had the highest rent increase. Rents in Beantown went up more than any of the 49 other cities in the study. Bostonians saw the average price of rent rise 7.89% between 2022 and 2023. Fresno, California, and Omaha, Nebraska, had the second- and third-largest rent hikes in 2023 – 7.11% and 7.04%, respectively. 
• Midwestern cities saw some of the highest rent increases. Six of the 10 cities where rent rose the most are located in the Midwest. Louisville, Kentucky, which sits on the banks of the Ohio River across from Indiana, is also among the 10 cities with the largest rent increases. 
• Rents in these cities average more than $3,000 per month. Renting in New York, San Francisco, San Jose, San Diego, Boston and Miami means shelling out over $3,100 per month. Unsurprisingly, New York has the highest average rents of any city at $3,693 per month.
• Rents in Austin and other cities actually decreased year over year. Between July 2022 and July 2023, rents fell the most in Austin (-2.78%), Las Vegas (-2.65%), Mesa, AZ (-0.96%), Dallas (-0.48%), Atlanta (-0.10%) and Phoenix (-0.07%). Those reductions ranged from $54.63 per month in Austin to just $1.29 per month in Phoenix. 
• Rent prices increased while home prices decreased in San Francisco and Los Angeles: In San Francisco, home prices dropped a whopping 11.50%, while rents increased just 0.17%. Home values in Los Angeles fell 3.77%, while rents increased 1.34%. In fact, rents rose and home values fell in 28 of the 50 cities in the study, including Washington D.C., Houston, Pittsburgh and Sacramento, CA. 

Top 10 Annual Increases in Rent

1. Boston, MA

No city saw a larger increase in average rent than Boston, where rents rose 7.89% between 2022 and 2023. Average rents have reached $3,182 per month, meaning that renters in Beantown are paying $233 more per month than they were in 2022. However, the increase came as home values fell 1.50%, bringing the price of a typical home to $719,352. 

2. Fresno, CA

The average rent in Fresno reached $1,766 per month after increasing 7.11% between 2022 and 2023. For the average renter, they’re paying $117 more per month than they were a year ago. Like Boston, home values in Fresno have fallen, while rents have risen. The average home in Fresno is now worth almost $366,000 – 1.40% less than a year ago.

3. Omaha, NE

Omaha is the only other city that recorded a 7% increase in average rent over the last year. On average, the cost of renting a home in Nebraska’s largest city rose nearly $88 per month and reached $1,337. This came as home values increased 2.90% and reached $274,816. 

4. Cincinnati, OH

Average rent in Cincinnati went from $1,240 per month in 2022 to $1,324 in 2023 – an increase of 6.74%. At the same time, homebuyers also saw prices rise 3.36% from a year earlier, as the average home now costs $239,461. 

5. Kansas City, MO

On average, renters in Kansas City are paying approximately $82 more per month than they were in 2022. The average rent in Missouri’s largest city rose 6.50% in that time, reaching $1,347 per month. Meanwhile, buying a home in Kansas City now costs 3.73% more than it did a year ago. 

6. Milwaukee, WI

In Milwaukee, rents climbed 6.13% in 2023 – an increase of almost $74 per month. The average rent went from about $1,201 per month in 2022 to $1,274 per month in 2023. Home prices in Milwaukee also increased in that time, albeit at a slower pace (3.29%). 

7. Chicago, IL

The nation’s third-largest city recorded a 5.88% increase in average rent for 2023. Renters in Chicago saw monthly average prices go from $1,989 to $2,106 – an increase of $117. Home prices, on the other hand, remained relatively steady, falling just 0.05%. 

8. Buffalo, NY

On average, renting in Buffalo is now almost $67 more expensive per month than it was in 2022. Average rents in the city climbed 5.21% in 2023, reaching $1,348 per month. Meanwhile, home prices rose significantly slower than rents, increasing just 1.51%. The typical home in Buffalo is now valued at $216,469.

9. Louisville, KY

Rents in Louisville jumped 5.03% between 2022 and 2023, resulting in almost a $65 monthly increase for the average renter. While rent averaged $1,284 per month in 2022, that number has since climbed to $1,348. Purchasing a home in Louisville also got pricier: the price of a typical home rose 3.35% to $235,741.

10. Indianapolis, IN

Renting in Indiana’s capital city got 4.32% more expensive in 2023. On average, rents climbed $57 per month and reached $1,386. Rents rose more than twice as fast as home values, which increased just 1.79% between 2022 and 2023.

Data and Methodology

Rental data comes from Zillow’s Zillow Observed Rent Index (ZORI). We compared data from July 2022 and July 2023 for all homes plus multifamilies for the 50 largest cities by population.

Financial Tips for Housing

• Run the numbers. There are advantages and disadvantages to renting. While you won’t build equity, renting doesn’t require a down payment and can allow for greater flexibility. SmartAsset’s rent vs. buy calculator can help you decide which option is best for your situation.
• Get creative. If you’re looking to buy a home but are having trouble qualifying, there are options. A wraparound mortgage, for instance, is an alternative form of financing in which you assume the existing mortgage of the seller. You’ll make payments directly to the seller, who will in turn continue to pay their mortgage and pocket the extra cash each month.

Work with a professional. A financial planner can help you manage your housing costs and integrate those expenses into a comprehensive financial plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool 

matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.