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- Post-pandemic rent prices have surged dramatically, showing no signs of stabilization.
- Many individuals are relocating to different states or opting for smaller apartments to manage expenses.
- Bank of America highlights the top eight cities where residents are moving for more affordable rental options.
Rent is one of the largest monthly expenditures for many households, and it continues to rise annually.
A recent report from Redfin indicates that the median rent across the United States has reached $1,634—an increase of 20% compared to pre-pandemic levels. Additionally, rents have escalated significantly over the past year; data from the Consumer Price Index reveals that renters are now paying nearly 5% more than they did a year ago for similar accommodations.
The ongoing surge in rental costs is prompting many consumers to seek out less expensive living arrangements. According to a client note from Bank of America dated October 30, their deposit data shows that average rent payments rose by 3.7% year-over-year as of September 2024. This discrepancy between Bank of America’s findings and official inflation rates suggests a trend where individuals are relocating in search of lower rents rather than remaining in their current residences.
Consumers are either leaving high-cost urban areas or downsizing within their cities as a strategy to cut costs. Renters constitute approximately 34% of all households in the U.S., with this demographic being predominantly younger and lower-income individuals who tend to be more sensitive to price fluctuations.
This trend isn’t entirely new; during the pandemic, many people began moving towards regions with lower rental prices as remote work became commonplace. Now, persistent increases in rent continue driving consumers toward locations with reduced housing expenses.
Bank of America has been tracking migration patterns by analyzing address changes among its customers. Their research indicates significant outflows from certain areas in both the West and Northeast regions, particularly noting rapid rental inflation occurring in Northeastern states. Cities like New York City, Boston, San Francisco, San Jose, and Los Angeles have experienced substantial net losses as residents find themselves priced out due to soaring costs.
Conversely, Southern states have only seen a modest increase—around 2%—in new rents which falls below national inflation rates. The Midwest also remains an attractive option for those relocating across state lines due to its comparatively low rental prices relative to other parts of the country.
Cities Offering Affordable Rental Options
Bank of America has identified eight cities where residents can find rentals below national averages based on positive population inflows recorded during Q3 2024 along with median asking rents reported by Redfin:
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