Rent Prices are Up in Every State Except for These Two

The cost of rent is rising across the nation, according to our Apartment Guide Annual Rent Report, which tracked the average rent by state. Nationally, the average price of a one-bedroom apartment increased by 19.8 percent between September 2020 and September 2021.

Rent prices went up in every region of the country. We studied data from 44 states and Washington D.C. and learned that the vast majority (96 percent) showed a year-to-year rent increase. (There wasn't sufficient data to survey the remaining five states.)

But rent prices didn't just go up year-over-year. The average rent by state increased month-over-month, too. Tenants in 35 of the 45 zones we studied also saw their rents go up between August and September 2021. That's an increase of 7.7 percent over the previous month.

Average rent prices are dropping in South Dakota and Nebraska

Nebraska and South Dakota are the only places where the average rent for a one-bedroom apartment decreased between September 2020 and September 2021. In Nebraska, a one-bedroom apartment costs an average of $976 a month. That's down 2.3 percent over last year.

The average price for a one-bedroom apartment in South Dakota is $775. This decrease of 19.7 percent is the largest in our survey. South Dakota was also the only state where the price went down for two-bedroom units, as well.

So, what makes these Midwestern neighbors so different from the rest of the country? Housing experts say a combination of factors contributed to lower rent prices in Nebraska and South Dakota.

Rent prices in Nebraska

The federal eviction moratorium, which ended in August 2021, temporarily stopped the eviction of renters for non-payment of rent during the pandemic. But it didn't necessarily stop evictions in Nebraska, explains Joe Garcia, Fair Housing Center of Nebraska and Iowa program director.

“The federal moratorium that was in place was tough on landlords," says Garcia. “Landlords were finding other ways to go around evicting clients, outside of non-payment."

Evictions may have eased the tight rental market in the state slightly. Omaha apartment prices actually increased 8.9 percent last year. But rent prices in the suburbs around Nebraska's largest city decreased. Elkhorn, Papillion and La Vista dropped 8.8 percent, 5.4 percent and 3.4 percent, respectively.

Renters looking for apartments in Lincoln also saved money on rent. The cost of a one-bedroom apartment fell to $1,032 in the capital city. That's a drop of 6.8 percent.

Rent prices in South Dakota

Steady apartment construction, rental vacancies and evictions helped South Dakota. The average rent for a one-bedroom apartment in Sioux Falls, the state's largest city, is $719 per month. That's down 0.7 percent year-over-year.

The same apartment in Rapid City would rent for an average of $1,020. Rapid City is the largest town in the scenic Black Hills and draws both tourists and future long- and short-term residents from out of state. The average rent here is higher, but it's still down 34.2 percent from last year.

“We do a vacancy survey in the Rapid City market and in the Sioux Falls market twice a year," says Denise Hanzlik, executive director of the South Dakota Multi-Housing Association. “It showed that (vacancy) went up from January to July, but it was minimal compared to the horror stories that were out there for other areas."

Some vacancies are due to evictions. Hanzlik says the eviction process continued in Rapid City, even when the federal eviction protections were in effect.

“Those judges never stopped evictions," Hanzlik explains. “They were still letting evictions go through the court systems, whereas in Sioux falls, I know they were stopped for non-payment."

New construction stayed steady in both cities during the pandemic. Sioux Falls developers obtained building permits for more than 1,595 housing units so far in 2021, more than 500 over last year. That may ease competition for available units in 2022.

States with the largest rent price increases

The cost of living is high in many Mid-Atlantic and West Coast cities. So it's tempting to assume that states like California, New York and Massachusetts would have some of the steepest average rent by state increases.

But there's not a single Mid-Atlantic state in the Top 10. And only one west coast state — Oregon — made the list (it's No. 9). Renters there saw a 32.4 percent increase in rent prices since September 2020. The places where the average rent increased the most include states in the South, Midwest, Mountain West and New England.

The price of rent increased the most in Rhode Island. The annual price jump of 111.7 percent is the largest in our survey. Rhode Island renters paid an average of $2,204 for a one-bedroom apartment in September 2022. Only tenants in California, New York, New Hampshire and Massachusetts paid more.

Kansas came in at No. 2, with an average annual rent increase of 44.4 percent. Third-ranked Ohio's rent hike was 41.7 percent. The last Midwestern state on this list, Michigan (No. 10), saw an increase of 29.9 percent.

Two states in Mountain West also saw significant annual rent increases in 2021. The cost of a one-bedroom apartment in Utah ( No. 4) went up 39.8 percent. Tenants in Idaho (No. 7) saw an increase of 34.2 percent.

Three southern states round out the Top 10. Florida rent jumped up 39.3 percent to earn the fifth spot on the list. Georgia comes in just behind, with an average rent increase of 39 percent. Tenants in South Carolina (No. 8) saw their rent bills go up 34.1 percent since last year.

Methodology

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com's multifamily rental property inventory as of October 2021. Our team uses a weighted average formula that more accurately represents price availability for each unit type and reduces the influence of seasonality on rent prices in specific markets.

States with insufficient or abnormal inventory shifts were excluded from this report.

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.