Moving Companies experts MovingFeedback analyzed data from Zillow.com to reveal the US states whose major metropolitan statistical areas (MSA) have seen the highest increase in average rent prices over the past three years. Idaho is the fourth most expensive state for renters, where renters have experienced an average 41% increase in prices.
Colorado has been named the most expensive US state for renters in its major metropolitan areas. The state has seen the biggest increase in rent prices over the past three years of 54%. In the first three months of 2020, the average rent price in MSAs in the state was $2,439.56, compared to an average of $3,757.93 across January, February and March in 2023. This is a 4.5 times larger increase than the state with the smallest increase, West Virginia.
Coming in second is Florida with a 46.7% increase in rent prices in just three years. Renters in MSAs were paying on average $1,448.43 between January and March 2020 and are now paying $2,126.06; a $677.63 increase. In comparison, the state’s average annual salary rise from the previous year is only 7.6%.
Montana ranks as the state whose major MSAs had the third highest increase in average prices for renters. In the first three months of 2020, rent prices were $906.45. The state has seen a $396.17 increase in price, to an average of $1,302.62 between January and March 2023.
In fourth position is Idaho, where an increase of $474.46 can be seen in this state over the past three years.
“We are seeing moderation in construction costs and land costs, therefore there should be a corresponding rent stabilization in the near future,” Jeff Hess, development partner at Hawkins Homes and Communities, said. “However, some new multi-family projects are lock into old land and construction contracts, so the leveling off will still take some time. There is a slight uptick in inventory, but still in short supply for the near future.”
Following Idaho is Arizona has the fifth largest increase in rent, going from $1,313.44 in early 2020, to $1,821.46 in 2023; a 38.67% increase over the three-year period.
A spokesperson for MovingFeedback commented on the findings: “Rent demand is strong in the US with rising homeownership costs. It is estimated that there is a shortage of 7.3 million affordable rental homes for those with low incomes. This paired with rising inflation means that rent prices have continued to soar.
“This data reveals huge disparities in pricing across the US with cities in Colorada and Florida seeing rent increase by around 50%, compared to states like West Virginia and Iowa, which have seen average increases below 15% over the past three years. The Enterprise group has found that nearly 11 million households spend more than 50% of their income on rent.”