Renting an apartment comes with serious sticker shock these days
If you or someone you know has looked into renting an apartment recently, you might’ve found yourself saying, “They want how much? For that? In this neighborhood?” When it comes to renting in the United States, the situation is kind of bleak.
Finding a decent place to live is just the first hurdle. You also have to make sure you can actually afford the rent. Unfortunately, rents have gone up an average of 41% (!) across the country in the past five years. And that doesn’t take into account related expenses: Groceries, utility costs and income tax deductions vary wildly depending on where you live. In some places, a $100,000 salary won’t even cover basic living expenses.
In major metropolitan areas, average rent increases (not totals) are staggering, reaching nearly $1,000. That’s right: Some renters are paying nearly $1,000 more than they were just a few years ago, and that’s on top of their already-high rental costs. LendingTree just published a study analyzing fair market rents (FMR) for one- and two-bedroom apartments in the country’s 50 largest and most popular metro areas, and it’s safe to say that rent has lost the plot completely.
The situation is dire, but we’re here to help. Are you in the market for a rental? Keep reading to learn which cities had the most significant rental-cost increases in the past five years.
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How were the most expensive cities determined?
LendingTree used FMR data from the U.S. Department of Housing and Urban Development (HUD) to determine average rent increases in the 50 largest metro areas over the past five fiscal years. It broke out the data as a percentage and a whole dollar amount, then ranked it.
The federal fiscal year (FY) runs from October through the following September, so this study covers the period from Oct. 1, 2020 (the beginning of FY 2021), when pandemic-related rent increases initially became noticeable, through FY 2026, which started on Oct. 1, 2025. The 2026 calculations are based on the most recent U.S. Census Bureau American Community Survey (ACS) data from 2019 to 2023, adjusted for projected rent growth and inflation.
One thing to keep in mind: FMRs are estimates, not actual market rents. They are based on approximately the 40th percentile of rents in each market, ensuring that the FMR reflects typical rents rather than luxury or top-end properties.
Why is rent going up in general?
Over the past five years, rent has increased for a variety of reasons—and people are feeling it. “These rent increases can cause a massive strain on consumers,” says Matt Schulz, LendingTree’s chief consumer finance analyst, in a press release. Let’s take a closer look at what’s going on and why.
Migration and demographic trends
The pandemic shook up most housing markets, which operate on supply and demand. In the early days of lockdown and the months that followed, work-from-home policies meant your home could be almost anywhere in the country. Many people fled the cities and suburbs, moving out of commuting distance.
But when corporations and government offices started requiring workers to be physically in the office, and not posted up in more affordable regions like the heartland, there was a move back to the cities, with many people renting because they bought elsewhere. Prices surged with the newfound demand.
Longstanding housing supply shortages
According to the U.S. Chamber of Commerce, the U.S. housing market is strained due to a shortage of 4.7 million homes. Yes, you read that number right. In addition, the U.S. population actually grew by 1% from 2023 to 2024, the largest increase in decades.
“This deficit [of housing], rooted in a decade of underbuilding following the Great Recession and surging demand from millennials entering prime home-buying years, has driven up prices and worsened affordability,” the Chamber of Commerce said in a September 2025 report.
Inflation
Overall inflation, combined with tariffs and increased costs for building materials, has led to a significant increase in housing costs for both renters and buyers. According to the Brookings Institution, housing inflation was stable before the pandemic, and even when inflation spiked in 2021, housing inflation fell below overall inflation—a condition we hadn’t seen in almost a decade.
“After overall inflation took off, housing inflation followed,” a Brookings post-COVID-19 housing report states. “While overall inflation peaked in mid-2022, housing inflation kept rising, peaking almost a full year later, in early 2023.” And even though overall inflation has eased, housing inflation has remained elevated at 4% through mid-2025, according to Brookings.
Where did rent go up the most?
Over the past five years, the most significant rent increases in the country have been in New York City, where rents went up by 47.4%. The average one-bedroom rent has ballooned by $854—a bit extreme, especially when most salaries haven’t kept pace. An apartment that used to cost $1,801 in the Big Apple now costs $2,655, which can be a heavy hit, especially for a single person.
New York fared about the same when it came to two-bedroom apartments. Rents for those rose by $857 (from $2,053 to $2,910), the third-highest increase for two-bedroom rents in the country after Miami, which jumped by $885, and San Diego, which increased by $877.
“If your income is rising at the same time your rent is, maybe that extra expense is no big deal,” Schulz says. “However, so many Americans’ financial wiggle room is tiny, even in the best of times, so having to carve out hundreds of extra dollars to pay rent each month can be a big deal.”
Why did rent in New York City increase so much?
New York is a notoriously costly place to rent or buy property, but the metro’s “unique housing dynamics” have led to the extreme rent increases, according to the LendingTree report. Let’s look at those NYC-specific issues, which are interrelated.
Demand
New York is a city of renters, with 69% of households renting—roughly twice the national average of 34.8%. When you have lots of people looking for housing, prices go up if the supply isn’t there. Which brings us to the next reason …
Limited supply of units
Housing production hasn’t kept pace with household growth, according to an analysis by New York City’s Department of Housing Preservation & Development. Even though home production has ticked up slightly, the city says this has not been enough to offset the demand.
Low vacancy
Vacancy rates for rent-stabilized and market-rate rental units have been very low for decades. According to city data, the vacancy rate has reached a historic low of 1.4%, the lowest since 1968. And for units priced on the low end of the scale (less than $1,100), the vacancy rate is just 0.39%.
What other cities are in the top 10?
When it comes to rent increases, New York might be leading the pack, but the Big Apple is hardly alone. In the country’s 50 largest metro areas, the average percentage increase was 40.7%, or about $457.
Here’s the list of top 10 metros, ranked by the five-year overall FMR dollar increase for a one-bedroom apartment.
- New York City
Dollar increase: $854
Percentage increase: 47.4% - San Diego
Dollar increase: $817
Percentage increase: 49.8% - Miami
Dollar increase: $764
Percentage increase: 62.1% - Riverside, California
Dollar increase: $671
Percentage increase: 60.7% - Tampa, Florida
Dollar increase: $656
Percentage increase: 63.1% - Sacramento, California
Dollar increase: $644
Percentage increase: 54.2% - Atlanta
Dollar increase: $620
Percentage increase: 59.6% - Orlando, Florida
Dollar increase: $591
Percentage increase: 51.8% - Boston
Dollar increase: $552
Percentage increase: 28.7% - Phoenix
Dollar increase: $551
Percentage increase: 53.4%
What can renters do to try to keep costs down?
Are you ready for the good news? For renters looking to keep costs down—or at least manageable—there are a few things they can do.
Don’t be afraid to negotiate
Even in highly competitive cities, your landlord may be willing to work with you rather than go through the trouble of finding a new tenant and risking it not working out. Do you have a skill or extra time? See if you can get a deal for providing a service, like lawn maintenance.
On top of that, markets change. San Francisco has been a notoriously costly place to live, but the population has been declining—the city is still 3.6% below Jan. 2020 levels—and rents have barely budged over the past few years. (In a wild rental-market plot twist, San Francisco had the lowest average rent increase of all 50 metro areas surveyed.) Don’t be afraid to use information about your market’s situational realities to your advantage.
Consider a longer lease
Every time a landlord turns over a property, they expend time and money filling the unit. If you’re in an area where rents are expected to go up—and you have the flexibility and willingness to stay 18 or 24 months—you may be able to work out a deal with your landlord to stabilize your rent despite market increases.
Look to the outskirts
Living in the heart of the action is appealing—especially to renters in their 20s and 30s who might want more nightlife than older folks—but you usually pay a premium to live downtown. Depending on whether you have more time or more money, a slightly longer commute (even from the suburbs) might be worth it to save on rent.
Strengthen your renter profile
If you’re looking for a leverage point with a potential landlord, a strong credit score and solid rental history can give you an edge when securing a lease and negotiating terms. Suppose you have strong landlord references and a history of paying bills on time. In that case, you can assure the landlord that you’ll never be any trouble and that your rent will always be on time or early.
Research housing programs
If you have a low to moderate income, you may qualify for rental assistance, housing vouchers or tax credits. You never know until you look into it, and a good place to start is with your city’s housing authority website or HUD’s rental assistance directory.
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Sources:
- Matt Schulz, LendingTree chief consumer finance analyst and author of Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life
- LendingTree: “Fair Market Rents Have Risen Dramatically Since 2021”
- HUD: “Affordable Places to Live”
- U.S. Census Bureau: “Net International Migration Drives Highest U.S. Population Growth in Decades”
- U.S. Chamber of Commerce: “The State of Housing in America”
- Brookings: “Quantitative easing and housing inflation post-COVID”
- NYC Housing Preservation & Development: “New York City’s Vacancy Rate Reaches Historic Low of 1.4 Percent, Demanding Urgent Action & New Affordable Housing”
