Rents in the United States declined year-on-year for the first time in June 2023, after surging for two years in a row. In November 2021, rents soared by over ** percent annually — the highest increase on record, and in August 2022, the average rental price reached an all-time high of over ***** U.S. dollars. Rental growth has since mellowed, with January 2025 recording a decline of about *** percent from the same period one year ago. Despite the softening of the market, many states still experienced rising rents.

In January 2025, apartment rents recorded an annual growth in most U.S. states. Nevertheless, the national average rent declined by about *** percent. West Virginia was the state with the largest rental increase, while Colorado measured the largest decline. California, one of the most expensive states to rent an apartment, such as California, saw an increase of about *** percent from the previous year. How much should you earn to afford to rent an apartment in different states in the U.S.? Both employment opportunities and the living costs vary widely across the country. In California, which is among the most competitive housing markets in the U.S., the hourly wage needed to afford a two-bedroom apartment rental was roughly ** U.S. dollars, more than twice higher than in North Carolina, Louisiana, or Michigan in 2024. When it comes to the median household income, on the other hand, California does not even make it in the top ten states. How much should you earn to afford a home in some of U.S. largest metros? In 2022, the annual salary needed to buy a median-priced home in the U.S. was ****** U.S. dollars. However, in some of the largest metropolitan areas in the United States, where housing prices are up to two or three times higher, homebuyers would have to earn more than 100,000 U.S. dollars to afford a home. In San Jose, which was the most expensive metro, the annual salary needed for a median-priced home was approximately ******* U.S. dollars.

As of January 2025, the rent for a two-bedroom apartment in Hawaii was about *** U.S. dollars higher than in California. The states of Hawaii and California ranked as the most expensive within the United States for apartment renters. Conversely, an apartment in Arkansas was almost ***** times more affordable than one in Hawaii.In 2025, the average monthly rent in the U.S. declined slightly. Nevertheless, in rents increased in most states, with West Virginia registering the highest growth.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Rent of Primary Residence in U.S. City Average (CUUR0000SEHA) from Dec 1914 to May 2025 about primary, rent, urban, consumer, CPI, inflation, price index, indexes, price, and USA.

The average monthly rent for all apartment types in the U.S. soared in 2021 and 2022, followed by a slight decline in the next two years. In April 2025, the monthly rent for a two-bedroom apartment amounting to ***** U.S. dollars. That was an increase from ***** U.S. dollars in January 2021, but a decline from the peak value of ***** U.S. dollars in August 2022. Where are the most expensive apartments in the U.S.? Apartment rents vary widely from state to state. To afford a two-bedroom apartment in California, for example, a renter needed to earn an average hourly wage of nearly ** U.S. dollars, which was approximately double the average wage in North Carolina and three times as much as the average wage in Arkansas. In fact, rental costs were considerably higher than the hourly minimum wage in all U.S. states. How did rents change in different states in the U.S.? In 2024, some of the most expensive states to rent an apartment only saw a moderate increase in rental prices. Nevertheless, rents increased in most states as of April 2025. In West Virginia, the annual rental growth was the highest, at ***** percent.

United States US: Price to Rent Ratio: sa data was reported at 134.118 2015=100 in 2024. This records an increase from the previous number of 133.710 2015=100 for 2023. United States US: Price to Rent Ratio: sa data is updated yearly, averaging 99.069 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 137.672 2015=100 in 2022 and a record low of 89.669 2015=100 in 1997. United States US: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Rent Inflation in the United States decreased to 3.80 percent in June from 3.90 percent in May of 2025. This dataset includes a chart with historical data for the United States Rent Inflation.

Price to Rent Ratio in the United States increased to 134.20 in the fourth quarter of 2024 from 133.60 in the third quarter of 2024. This dataset includes a chart with historical data for the United States Price to Rent Ratio.

Revenue for apartment lessors has expanded through the end of 2025. Apartment lessors collect rental income from rental properties, where market forces largely determine their rates. The supply of apartment rentals has grown slower than demand, which has elevated rental rates for lessors' benefit. As the Federal Reserve hiked interest rates 11 times between March 2022 and January 2024, homeownership was pushed beyond the reach of many, resulting in a tighter supply and increased demand for rental properties. Despite three interest rate cuts in 2024, mortgage rates have remained high, further encouraging consumers to rent. Revenue has climbed at a CAGR of 2.9% over the past five years and is expected to reach $299.7 billion by the end of 2025. This includes an anticipated 3.0% gain in 2025 alone. The increasing unaffordability of housing is caused by the steady climb of mortgage rates and high prices maintained by a low supply. Supply has been held down as buyers who locked in low rates stay put, and investment groups hold a strategic number of their properties empty as investments. Industry profit has remained elevated because of solid demand for apartment rentals. Through the end of 2030, the apartment rental industry's future performance is likely to be shaped by varying factors. The apartment supply in the US, which hit a record in 2024, is expected to taper off, which will, in turn, push rental prices and occupancy rates up to the lessors' benefit. Other factors, such as further interest rate cuts, decreasing financial barriers to homeownership, and a high rate of urbanization, will also significantly impact the industry. Wth approximately 80.7% of the US population living in urban areas, demand for apartment rentals will strengthen, although rising rental prices could force potential renters to cheaper suburbs. Demand will continue to outpace supply growth, prompting a climb in revenue. Revenue is expected to swell at a CAGR of 2.8% over the next five years, reaching an estimated $344.3 billion in 2030.

Graph and download economic data for Rental Vacancy Rate in the United States (RRVRUSQ156N) from Q1 1956 to Q2 2025 about vacancy, rent, rate, and USA.

In 2021, the University of California - Riverside, CA had the highest rental increase for student housing in the United States, measuring an average of ** percent. All other universities saw a more moderate growth, with a few experiencing decrease in rents. In Illinois State University, IL, rents fell by approximately *** percent.

VITAL SIGNS INDICATOR
Rent Payments (EC8)

FULL MEASURE NAME
Median rent payment

LAST UPDATED
January 2023

DESCRIPTION
Rent payments refer to the cost of leasing an apartment or home and serves as a measure of housing costs for individuals who do not own a home. The data reflect the median monthly rent paid by Bay Area households across apartments and homes of various sizes and various levels of quality. This differs from advertised rents for available apartments, which usually are higher. Note that rent can be presented using nominal or real (inflation-adjusted) dollar values; data are presented inflation-adjusted to reflect changes in household purchasing power over time.

DATA SOURCE
U.S. Census Bureau: Decennial Census - https://nhgis.org
Count 2 (1970)
Form STF1 (1980-1990)
Form SF3a (2000)

U.S. Census Bureau: American Community Survey - https://data.census.gov/
Form B25058 (2005-2021; median contract rent)

Bureau of Labor Statistics: Consumer Price Index - https://www.bls.gov/data/
1970-2021

CONTACT INFORMATION
vitalsigns.info@mtc.ca.gov

METHODOLOGY NOTES (across all datasets for this indicator)
Rent data reflects median rent payments rather than list rents (refer to measure definition above). American Community Survey 1-year data is used for larger geographies – Bay counties and most metropolitan area counties – while smaller geographies rely upon 5-year rolling average data due to their smaller sample sizes. Note that 2020 data uses the 5-year estimates because the ACS did not collect 1-year data for 2020.

1970 Census data for median rent payments has been imputed from quintiles using methodology from California Department of Finance as the source data only provided the mean, rather than the median, monthly rent. Metro area boundaries reflects today’s metro area definitions by county for consistency, rather than historical metro area boundaries.

Inflation-adjusted data are presented to illustrate how rent payments have grown relative to overall price increases; that said, the use of the Consumer Price Index (CPI) does create some challenges given the fact that housing represents a major chunk of consumer goods bundle used to calculate CPI. This reflects a methodological tradeoff between precision and accuracy and is a common concern when working with any commodity that is a major component of CPI itself.

The online apartment rental services industry is experiencing significant growth because of the booming apartment supply, with over half a million new rental units completed in 2024. Major cities like New York, Dallas and Austin are leading the way in this surge, causing an influx of new, predominantly high-end rental units. As a result, there is increased competition among property managers and a need for more effective digital marketing strategies to reach potential renters. This accelerated growth is predominantly benefiting online rental services, which have seen a climb in listings that, in turn, drive more traffic as renters seek opportunities and deals in markets with slowing rent growth. Overall, industry-wide revenue has climbed at a CAGR of 7.7% to $928.1 million through the end of 2025, including an 8.6% gain in 2025 alone, when profit is expected to reach 23.8%. Leading organizations, such as Zillow and Redfin, are taking advantage of this trend by forming partnerships to expand their listing networks and reach. The consolidation of these digital platforms means renters can access a broader range of apartment listings, streamlining their search process and increasing market transparency. Meanwhile, property marketers are presented with simplified operations and increased marketing leads because of enhanced exposure across major rental platforms. However, smaller markets and affordable housing are not receiving the same benefits, signaling a need for more targeted digital marketing and search tools. The online apartment rental services industry is set to face a shift from oversupply to scarcity by the end of 2030. As apartment construction slows because of high borrowing costs, tighter lending standards and rising project costs, there will be a greater demand for platforms that can help landlords maximize occupancy and optimize rents in a tightening market. To meet this demand, innovations in technology, such as predictive analytics, dynamic pricing and personalized renter experiences, will become a necessity. Amid these changes, the industry is also likely to see a gain in demand for single-family rentals, creating new opportunities for digital platforms to expand their offerings and capture a larger market share. Industry revenue will strengthen at a CAGR of 9.0% to $1.4 billion in 2030.

Graph and download economic data for Median Sales Price of Houses Sold for the United States (MSPUS) from Q1 1963 to Q2 2025 about sales, median, housing, and USA.

United States US: Rent Price Index: sa data was reported at 146.796 2015=100 in 2024. This records an increase from the previous number of 139.720 2015=100 for 2023. United States US: Rent Price Index: sa data is updated yearly, averaging 52.865 2015=100 from Dec 1960 (Median) to 2024, with 65 observations. The data reached an all-time high of 146.796 2015=100 in 2024 and a record low of 8.683 2015=100 in 1960. United States US: Rent Price Index: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual.

Commercial rents services price index (CRSPI) by North American Industry Classification System (NAICS). Monthly data are available from January 2006 for the total index and from January 2019 for all other indexes. The table presents data for the most recent reference period and the last five periods. The base period for the index is (2019=100).

PPI: Svcs: RE: RP: Nonresidential: Primary Services data was reported at 117.881 Dec2003=100 in Apr 2025. This records an increase from the previous number of 115.427 Dec2003=100 for Mar 2025. PPI: Svcs: RE: RP: Nonresidential: Primary Services data is updated monthly, averaging 100.700 Dec2003=100 from Dec 2003 (Median) to Apr 2025, with 257 observations. The data reached an all-time high of 119.347 Dec2003=100 in Jun 2024 and a record low of 93.100 Dec2003=100 in Jul 2020. PPI: Svcs: RE: RP: Nonresidential: Primary Services data remains active status in CEIC and is reported by U.S. Bureau of Labor Statistics. The data is categorized under Global Database’s United States – Table US.I: Producer Price Index: by Industry: Services: Real Estate and Rental Leasing.

In 2024, the average rent for rental apartments increased in ** of the ** U.S. metropolitan areas with the largest populations. Providence-Warwick, RI-MA was the metro with the highest rental growth, an annual increase of **** percent as of April that year. Conversely, Austin-Round Rock-Georgetown, TX experienced the highest decline in rents, at **** percent.

Party Supply Rental providers rent tables, chairs, audio equipment, tents and other related supplies to host events. Through the end of 2025, rising disposable income and growth in downstream markets have spurred demand for events that require party supplies, fueling strong revenue gains. The large rate of growth is enhanced by the low level of profit to begin the period in 2020, as the pandemic hurt sales and large gatherings were prohibited to prevent the virus spread. A mixture of robust growth in marriage rates, coupled with pent-up consumer demand following the pandemic, enabled a rapid recovery for rental providers. Revenue is expected to swell at a CAGR of 8.3% to $8.5 billion through the end of 2025, including a forecast hike of 0.4% in 2025 alone. Party rental providers endured a challenge with price-conscious consumers turning to the Internet to compare prices. Most of the largest providers now have comprehensive solutions to event planning, such as detailed diagrams of equipment layouts and event consultations. Many smaller providers have partnered with catering and planning companies to deliver a range of services to their clients, enabling them to avoid price-based competition. These value-added offerings helped boost revenue in recent years. Party supply rental providers have become more competitive as low barriers to entry and high profit caused many businesses to enter the marketplace. These trends caused intense price-based competition among suppliers, forcing companies to offer promotions and discounts on their products and services to stay competitive, which constrained profit. Moving forward, demand for party supplies will continue to expand as economic growth encourages consumers and businesses to host events. However, the US economy remains susceptible to significant volatility because of global trade tensions and a possible war in the Middle East, potentially dampening growth prospects. Differentiating from competitors with innovative party supplies will bolster prices as companies can charge more for their services. Companies are also leveraging technologies to ensure the timely and cost-effective use of labor. Technology also improves consumer insights and helps rental providers make adjustments to improve sales in the future. Although a recovery in consumer demand will stabilize profitability, heightened inflationary pressures may dampen growth opportunities. Revenue is expected to expand at a CAGR of 1.2% to $9.0 billion through the end of 2030.

The LTR Genie Score of High Point, NC is 77, indicating a moderate level of attractiveness for long-term rental investment. This score is based on factors such as LTR rentability, LTR net ROI, and LTR rent growth rate. On the other hand, the STR Genie Score is 51, suggesting a lower level of attractiveness for short-term rental investment. This score takes into account factors such as STR net ROI, STR occupancy, and STR revenue. High Point, NC is a city located in the Piedmont Triad region of North Carolina known for its furniture industry and annual furniture market. The city has a growing population and a strong economy, making it an attractive location for real estate investment. Based on the metrics provided, High Point, NC seems to be more suitable for long-term rental investment rather than short-term rental investment. The LTR Genie Score is higher than the STR Genie Score, indicating that long-term rentals may offer better returns and stability in this market. Investors looking for steady cash flow and long-term appreciation potential may find High Point, NC to be a promising market for real estate investment.