Rent Report, December 2021: The State of the Rental Market

Rent prices continue to trend up across the U.S. as the end of the year approaches. Let's look at where rent prices stand today.

National average rent price trends

Nationwide rent prices for both one-bedroom and two-bedroom apartments have increased significantly year-over-year at 21.3 percent and 16.7 percent, respectively.

After a brief lull in two-bedroom prices month-over-month, one- and two-bedroom rents increased slightly compared to October.

1-BR: $1,680 (+0.6 percent from prior month / +21.3 percent year-over-year)
2-BR: $1,958 (+0.4 percent from prior month / +16.7 percent year-over-year)

State average rent price trends

State to state, rent prices are up compared to this time last year. All states have seen two-bedroom rents increase in that time, and one-bedroom rents have risen in every state except Nebraska, which dipped 2 percent.

1-BR: 97.8 percent of states are up and 2 percent of states are down
2-BR: 100 percent of states are up and none are down

City average rent price trends

In the country's largest cities, rents are rising more often than receding. Seventy-nine percent of one-bedroom rents and 78 percent of two-bedroom rents in the 100 most populated cities have seen rent increases year-over-year.

Here are the highs and lows from city-level rent changes.

One-bedroom city average rent price trends

The following cities have experienced the biggest increases in one-bedroom rent prices year-over-year. Six of these cities — Gilbert, AZ; Orlando, FL; Spokane, WA; Reno, NV; Port Saint Lucie, FL and Saint Petersburg, FL — have populations of 300,000 or less.

Gilbert, AZ (+89.1 percent)
Long Beach, CA (+55.4 percent)
Orlando, FL (+54.9 percent)
Anaheim, CA (+50.8 percent)
Spokane, WA (+48.6 percent)
Reno, NV (+48.3 percent)
Tucson, AZ (+36.9 percent)
Saint Petersburg, FL (+36.5 percent)
Santa Ana, CA (+34.2 percent)
Port Saint Lucie, FL (+33.6 percent)

The following cities have experienced the biggest decreases in one-bedroom rent prices year-over-year. Five of these cities —Durham, NC; Toledo, OH; Tacoma, WA; Madison, WI and Lincoln, NE — have populations of 300,000 or less.

Toledo, OH (-22.0 percent)
Miami, FL (-16.4 percent)
Kansas City, MO (-12.1 percent)
Lincoln, NE (-11.7 percent)
Indianapolis, IN (-10.3 percent)
Atlanta, GA (-10.1 percent)
Philadelphia, PA (-9.7 percent)
Tacoma, WA (-7.6 percent)
Durham, NC (-7.4 percent)
Madison, WI (-5.4 percent)

Two-bedroom city average rent price trends

The following cities have experienced the biggest increases in two-bedroom rent prices year-over-year. Three of these cities — Hialeah, FL; Birmingham, AL and Fort Wayne, IN — have populations of 300,000 or less.

Jacksonville, FL (+54.3 percent)
Tucson, AZ (+50.9 percent)
Fort Wayne, IN (+47.2 percent)
Hialeah, FL (+44.0 percent)
Anaheim, CA (+39.7 percent)
Arlington, TX (+36.7 percent)
Houston, TX (+36.3 percent)
Albuquerque, NM (+36.1 percent)
Birmingham, AL (+34.1 percent)
Santa Ana, CA (+31.9 percent)

The following cities have experienced the biggest decreases in two-bedroom rent prices year-over-year. Three of these cities — Plano, TX; Durham, NC and Scottsdale, AZ — have populations of 300,000 or less.

Wichita, KS (-22.2 percent)
Philadelphia, PA (-20.9 percent)
Plano, TX (-13.7 percent)
Baltimore, MD (-11.5 percent)
Pittsburgh, PA (-11.1 percent)
Atlanta, GA (-10.3 percent)
Durham, NC (-9.0 percent)
Kansas City, MO (-8.4 percent)
Indianapolis, IN (-7.6 percent)
Scottsdale, AZ (-7.4 percent)

Overlap cities by average rent prices

Some cities reflect increases or decreases in rent prices across all bedroom types. We call these "overlap cities."

Three cities in the top 10 have experienced year-over-year price increases in both one-bedroom and two-bedroom apartments:

Five cities in the top 10 have experienced year-over-year price decreases in both one-bedroom and two-bedroom apartments:

Rental industry trends

In addition to our pricing trends, here are a few key industry developments:

1. Home supply dropped to its lowest level ever

A year-end report from Redfin shows just how unprecedented the housing market was in 2021. Among the highlights was an all-time high $386,000 median home sale price, up 24.4 percent year-over-year. Driving the price hike is a sub-3 percent mortgage rate, an active investment sector and a record low housing supply. A meager 1.38 million homes went up for sale in 2021, down 23 percent from 2020. Of those homes, nearly 1 in 5 were purchased by investors.

These new records are one element putting upward pressure on the rental market as renters who would have transitioned to their dream homes are priced out of the home buying market.

2. Inflation will slow but higher prices will stay in 2022

From chicken wings and wrapping paper to rents, overall consumer prices went up 6.8 percent for the 12 months ending in November, a 39-year high. Economists predict the steep rise will continue, peaking above 7 percent in early 2022 before falling to 3 percent by year's end on the back of supply chain improvements, reduced energy costs, and Fed plans to slow bond purchases and raise interest rates. Still, don't expect prices, including rents, to return to pre-pandemic levels.

"Just because inflation will eventually moderate doesn't mean prices are going down," Nela Richardson, chief economist at ADP, said. "They're up. We're just lowering the rate of change, not the level of prices."

About this report

Our December 2021 Rent Report highlights year-over-year rent trends and price fluctuations that renters may experience in various parts of the United States. We compare rent prices for one-bedroom and two-bedroom apartments to determine which unit types and which of the country's most populated cities are becoming more affordable or more expensive for renters. States and cities with insufficient inventory are excluded from this report.

Rank by Population	City, State	Population	1-BR Avg Rent, November 2021	1-BR YoY Change
19	Boston, MA	692,600	$3,688	11.33%
14	San Francisco, CA	881,549	$3,661	13.66%
64	Irvine, CA	287,401	$3,268	30.60%
42	Oakland, CA	433,031	$3,163	18.46%
69	Jersey City, NJ	262,075	$3,144	22.60%
94	Glendale, CA	199,303	$3,143	12.38%
51	Anaheim, CA	350,365	$3,106	50.75%
1	Los Angeles, CA	3,979,576	$2,996	13.53%
40	Long Beach, CA	462,628	$2,986	55.43%
9	San Jose, CA	1,021,795	$2,922	12.91%
52	Santa Ana, CA	332,318	$2,903	34.20%
7	San Diego, CA	1,423,851	$2,814	18.11%
78	Fremont, CA	241,110	$2,685	27.01%
93	Yonkers, NY	200,370	$2,601	9.68%
95	Huntington Beach, CA	199,223	$2,594	16.94%
16	Seattle, WA	753,675	$2,502	25.93%
18	Washington, DC	705,749	$2,441	8.56%
66	Chula Vista, CA	274,492	$2,281	11.33%
73	Scottsdale, AZ	258,069	$2,223	17.48%
17	Denver, CO	727,211	$2,222	11.92%
33	Sacramento, CA	513,624	$2,187	-1.22%
63	Orlando, FL	287,442	$2,148	54.89%
2	Chicago, IL	2,693,976	$2,136	2.97%
39	Miami, FL	467,963	$2,114	-16.38%
24	Portland, OR	654,741	$2,061	14.76%
68	Saint Petersburg, FL	265,351	$1,973	36.52%
62	Plano, TX	287,677	$1,972	9.51%
74	Reno, NV	255,601	$1,967	48.27%
21	Nashville, TN	670,820	$1,967	16.73%
5	Philadelphia, PA	1,584,064	$1,958	-9.71%
47	New Orleans, LA	390,144	$1,954	14.46%
92	Frisco, TX	200,490	$1,945	17.11%
75	Gilbert, AZ	254,114	$1,885	89.06%
88	Port Saint Lucie, FL	201,846	$1,882	33.57%
50	Aurora, CO	379,289	$1,862	29.36%
58	Saint Louis, MO	300,576	$1,853	-1.39%
84	Tacoma, WA	217,827	$1,832	-7.57%
28	Baltimore, MD	593,490	$1,808	6.66%
81	Boise, ID	228,959	$1,782	30.88%
8	Dallas, TX	1,343,573	$1,757	18.20%
10	Austin, TX	978,908	$1,747	29.23%
25	Las Vegas, NV	651,319	$1,726	21.56%
79	Irving, TX	239,798	$1,701	13.87%
55	Henderson, NV	320,189	$1,691	20.21%
59	Pittsburgh, PA	300,286	$1,633	1.49%
22	Detroit, MI	670,031	$1,625	25.80%
3	Houston, TX	2,320,268	$1,590	28.82%
34	Atlanta, GA	506,811	$1,544	-10.10%
77	Norfolk, VA	242,742	$1,518	10.96%
56	Saint Paul, MN	308,096	$1,517	-1.13%
45	Tampa, FL	399,700	$1,501	15.19%
12	Columbus, OH	898,553	$1,499	21.95%
70	Chandler, AZ	261,165	$1,474	-2.39%
13	Charlotte, NC	885,708	$1,457	14.34%
38	Raleigh, NC	474,069	$1,452	17.13%
43	Minneapolis, MN	429,606	$1,451	2.45%
82	Spokane, WA	222,081	$1,432	48.59%
96	McKinney, TX	199,177	$1,427	16.00%
41	Virginia Beach, VA	449,974	$1,426	-2.27%
91	Salt Lake City, UT	200,567	$1,417	19.76%
32	Mesa, AZ	518,012	$1,396	32.97%
36	Colorado Springs, CO	478,221	$1,371	-3.05%
57	Cincinnati, OH	303,940	$1,371	24.98%
87	Rochester, NY	205,695	$1,362	-3.30%
29	Milwaukee, WI	590,157	$1,361	0.86%
4	Phoenix, AZ	1,680,992	$1,340	0.54%
30	Albuquerque, NM	560,513	$1,339	30.67%
98	Aurora, IL	197,757	$1,329	8.25%
80	Richmond, VA	230,436	$1,314	8.76%
65	Durham, NC	278,993	$1,291	-7.39%
49	Cleveland, OH	381,009	$1,276	-3.18%
89	Grand Rapids, MI	201,013	$1,257	1.16%
11	Fort Worth, TX	909,585	$1,238	4.71%
35	Kansas City, MO	495,327	$1,223	-12.10%
85	Des Moines, IA	214,237	$1,206	3.11%
71	Madison, WI	259,680	$1,203	-5.41%
27	Louisville, KY	617,638	$1,162	8.07%
97	Augusta, GA	197,888	$1,158	14.82%
31	Tucson, AZ	548,073	$1,147	36.93%
46	Arlington, TX	398,854	$1,131	12.66%
54	Lexington, KY	323,152	$1,098	31.86%
76	Winston-Salem, NC	247,945	$1,087	13.49%
6	San Antonio, TX	1,547,253	$1,070	1.85%
15	Indianapolis, IN	876,384	$1,069	-10.28%
26	Memphis, TN	651,073	$1,028	-2.16%
86	Fayetteville, NC	211,657	$1,026	21.10%
83	Baton Rouge, LA	220,236	$1,021	0.69%
53	Corpus Christi, TX	326,586	$1,001	17.12%
37	Omaha, NE	478,192	$990	2.81%
61	Lincoln, NE	289,102	$971	-11.71%
100	Little Rock, AR	197,312	$962	16.18%
90	Huntsville, AL	200,574	$959	-4.58%
20	El Paso, TX	681,728	$912	3.84%
23	Oklahoma City, OK	655,057	$835	20.57%
60	Greensboro, NC	296,710	$832	2.04%
48	Wichita, KS	389,938	$813	12.95%
99	Akron, OH	197,597	$774	0.76%
72	Lubbock, TX	258,862	$730	5.02%
44	Tulsa, OK	401,190	$716	-0.52%
67	Toledo, OH	272,779	$651	-21.97%

Rank by Population	City, State	Population	2-BR Avg Rent, November 2021	2-BR YoY Change
19	Boston, MA	692,600	$4,910	12.52%
1	Los Angeles, CA	3,979,576	$4,696	8.88%
66	Jersey City, NJ	262,075	$4,543	27.08%
15	San Francisco, CA	881,549	$4,396	3.35%
90	Glendale, CA	199,303	$4,207	27.20%
42	Oakland, CA	433,031	$4,176	18.58%
52	Santa Ana, CA	332,318	$3,707	31.95%
7	San Diego, CA	1,423,851	$3,657	12.58%
91	Huntington Beach, CA	199,223	$3,564	20.18%
89	Yonkers, NY	200,370	$3,520	13.01%
2	Chicago, IL	2,693,976	$3,363	13.00%
17	Denver, CO	727,211	$3,333	18.82%
9	San Jose, CA	1,021,795	$3,312	6.82%
40	Miami, FL	467,963	$3,285	-1.57%
75	Fremont, CA	241,110	$3,251	20.80%
51	Anaheim, CA	350,365	$3,233	39.72%
18	Washington, DC	705,749	$3,182	9.15%
34	Sacramento, CA	513,624	$2,925	12.55%
24	Portland, OR	654,741	$2,840	17.95%
77	Hialeah, FL	233,339	$2,798	44.04%
47	New Orleans, LA	390,144	$2,790	19.49%
70	Scottsdale, AZ	258,069	$2,556	-7.44%
8	Dallas, TX	1,343,573	$2,544	17.61%
5	Philadelphia, PA	1,584,064	$2,436	-20.89%
88	Frisco, TX	200,490	$2,373	0.35%
22	Detroit, MI	670,031	$2,369	15.90%
3	Houston, TX	2,320,268	$2,265	36.27%
21	Nashville, TN	670,820	$2,247	-0.75%
80	Tacoma, WA	217,827	$2,219	-1.93%
58	Saint Louis, MO	300,576	$2,218	-1.93%
50	Aurora, CO	379,289	$2,105	23.88%
62	Plano, TX	287,677	$2,100	-13.65%
29	Milwaukee, WI	590,157	$2,048	21.72%
71	Buffalo, NY	255,284	$2,046	21.51%
35	Atlanta, GA	506,811	$2,039	-10.31%
25	Las Vegas, NV	651,319	$2,016	27.23%
76	Irving, TX	239,798	$2,014	7.70%
43	Minneapolis, MN	429,606	$2,003	-6.14%
55	Henderson, NV	320,189	$1,951	25.22%
95	Aurora, IL	197,757	$1,936	25.55%
56	Saint Paul, MN	308,096	$1,934	0.46%
49	Cleveland, OH	381,009	$1,930	13.40%
45	Tampa, FL	399,700	$1,929	17.96%
11	Jacksonville, FL	911,507	$1,926	54.31%
67	Chandler, AZ	261,165	$1,882	-4.05%
13	Columbus, OH	898,553	$1,841	21.22%
68	Madison, WI	259,680	$1,831	4.01%
57	Cincinnati, OH	303,940	$1,822	19.33%
92	McKinney, TX	199,177	$1,819	8.78%
100	Grand Prairie, TX	194,543	$1,794	23.66%
14	Charlotte, NC	885,708	$1,787	11.81%
41	Virginia Beach, VA	449,974	$1,756	1.95%
33	Mesa, AZ	518,012	$1,755	27.40%
39	Raleigh, NC	474,069	$1,732	27.73%
97	Tempe, AZ	195,805	$1,723	12.25%
99	Overland Park, KS	195,494	$1,715	24.18%
28	Baltimore, MD	593,490	$1,709	-11.49%
10	Austin, TX	978,908	$1,693	6.23%
72	North Las Vegas, NV	251,974	$1,690	13.43%
87	Salt Lake City, UT	200,567	$1,666	7.54%
74	Norfolk, VA	242,742	$1,663	7.52%
59	Pittsburgh, PA	300,286	$1,657	-11.08%
31	Tucson, AZ	548,073	$1,654	50.94%
85	Grand Rapids, MI	201,013	$1,647	7.45%
37	Colorado Springs, CO	478,221	$1,618	3.96%
4	Phoenix, AZ	1,680,992	$1,608	-2.70%
12	Fort Worth, TX	909,585	$1,585	18.38%
46	Arlington, TX	398,854	$1,578	36.71%
78	Richmond, VA	230,436	$1,576	10.21%
84	Rochester, NY	205,695	$1,553	-7.00%
30	Albuquerque, NM	560,513	$1,546	36.12%
63	Durham, NC	278,993	$1,546	-9.02%
36	Kansas City, MO	495,327	$1,517	-8.42%
65	Fort Wayne, IN	270,402	$1,503	47.17%
83	Birmingham, AL	209,403	$1,456	34.14%
81	Des Moines, IA	214,237	$1,434	23.44%
86	Huntsville, AL	200,574	$1,379	18.04%
94	Augusta, GA	197,888	$1,347	17.43%
6	San Antonio, TX	1,547,253	$1,337	9.29%
38	Omaha, NE	478,192	$1,316	8.14%
16	Indianapolis, IN	876,384	$1,299	-7.63%
27	Louisville, KY	617,638	$1,268	9.07%
73	Winston-Salem, NC	247,945	$1,256	18.23%
53	Corpus Christi, TX	326,586	$1,225	13.17%
54	Lexington, KY	323,152	$1,222	15.10%
20	El Paso, TX	681,728	$1,202	3.53%
61	Lincoln, NE	289,102	$1,190	-7.02%
98	Columbus, GA	195,769	$1,176	10.18%
82	Fayetteville, NC	211,657	$1,170	21.47%
96	Little Rock, AR	197,312	$1,158	21.59%
32	Fresno, CA	531,576	$1,129	21.72%
79	Baton Rouge, LA	220,236	$1,128	-3.31%
26	Memphis, TN	651,073	$1,090	18.63%
60	Greensboro, NC	296,710	$1,068	11.14%
64	Toledo, OH	272,779	$1,003	1.91%
93	Montgomery, AL	198,525	$994	12.64%
23	Oklahoma City, OK	655,057	$952	7.63%
44	Tulsa, OK	401,190	$855	-0.39%
69	Lubbock, TX	258,862	$831	-3.99%
48	Wichita, KS	389,938	$596	-22.20%

Methodology

To determine average rent prices, we started with October 2021 data from Apartment Guide and Rent.com's multifamily rental property inventory. From there, we evaluated changes seen since October 2020. Monthly prices are based on the average price for that respective month as a whole.

We used a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets. From there, we looked at historical standard deviations of our weighted rent prices to remove outlier markets and minimize potential volatility caused by lower inventory. Rent price increases and decreases per time period are based on the percentage change of apartment rental prices from October 2020.

The U.S. Census divides the country into four geographic regions: Northeast (Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont); Midwest (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin); South (Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, District of Columbia and West Virginia) and West (Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Hawaii, Utah, Washington and Wyoming). The top 100 cities in our analysis were determined by 2019 U.S. Census Bureau population estimates.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.