This is where rents in the United States are rising — and falling — the fastest

Many major U.S. cities saw apartment prices soar last year, even as the average American saw a significant slowdown in pandemic-era rent inflation.

For example, renters in Syracuse, New York, have seen monthly rents for one- and two-bedroom apartments on the market rise more than in other major cities: by 29% and 25%, respectively, since June 2023, according to data in Zumper's National Rent Report .

Zumper analyzed average asking rents for apartment listings in the 100 most populous U.S. cities.

Rents also rose at least 10% for both one- and two-bedroom apartments in other major metro areas: Lincoln, Nebraska; chicago; Buffalo, New York; Madison, Wisconsin; Rochester, New York; And New York City, according to Zumper.

Conversely, renters in other cities are relieved.

Demand for one-bedroom apartment rentals decreased by at least 5% in Oakland, CA; Memphis and Chattanooga, Tennessee; Cincinnati, Ohio; Colorado Springs, Colorado; Irving, Texas; Jacksonville, Florida; and Raleigh, Greensboro and Durham, North Carolina, according to the analysis.

By comparison, overall national prices for one- and two-bedroom apartments have risen 1.5% and 2.1%, respectively, since June 2023, Zumper found.

New York is the most expensive metro for renters: The typical renter was found to pay $4,300 per month for a one-bedroom apartment.

By comparison, in Akron, Ohio, and Wichita, Kansas — which tied for the lowest rents among major cities — renters pay $730 a month for a one-bedroom apartment.

At a high level, rent inflation is guided by supply and demand dynamics, said Crystal Chen, the analyst who authored Zumper's analysis.

Essentially, areas with fast-growing rents are seeing demand outpace the supply of available apartments, while areas with lower rents are seeing their apartment inventory grow.

For example, New York City's apartment vacancy rate recently dropped to 1.4%, a historic low dating back to the 1960s, according to the New York City Department of Housing Preservation and Development. The agency said the vacancy rate has “declined” from 4.5% just two years ago.

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“The data is clear: the demand for housing in our city far outstrips our ability to build housing,” New York City Mayor Eric Adams said in a statement about the vacancy rate.

Rent inflation can pose financial challenges for families.

In May, the typical renter would have spent nearly 30% of their income on a new rent, according to Zillow.

While it's down from a recent peak of near 31% in June 2022, it exceeds the roughly 28% that was common before the pandemic, according to Zillow data.

About 86% of New York City residents with low incomes (less than $25,000 per year) experience severe rent burdens, according to the New York City Department of Housing Preservation and Development. She said increased financial pressures had caused a “worrying increase in rent payments and arrears” compared to 2021.

Rising rents can have other ripple effects.

For example, it could limit potential homebuyers' ability to save for a down payment, “keeping them on the sidelines of the housing market,” Fitch said in its Global Housing Outlook, for example.

Rent inflation fell in the early days of the Covid-19 pandemic.

Chen said that “almost everyone” has been sheltering in place during the health crisis, and that digital nomads who no longer have to work in a physical office have left cities in favor of suburbs and outdoor spaces.

However, Chen said rents rose during 2022 and into 2023 amid return-to-office policies and as people return to major cities.

Annual rent inflation largely hovered between 3% and 4% in the years before the pandemic, peaking at about 9% in early 2023, according to the Consumer Price Index. It has gradually declined since then, to about 5% in May, according to Consumer Price Index data.