New York City is expected to be the most expensive U.S. rental market in 2023 — and it would take something "seismic" for that to change, according to online realtor Zumper.
There are five cities where rent prices are predicted to cost the most next year, based on existing rent prices and projected demand, per an analysis provided by Zumper. While New York is "definitely" No. 1, the other four spots were not ranked since they're too close to call.
Here's a look at the cities where rent is expected to be most expensive for a one-bedroom home, as well as price trends in each.
- Median rent in December 2022: $3,738
- Median rent in December 2020: $2,399
- Percent change: 56%
Prior to the pandemic, median rent for a one-bedroom home in the Big Apple was closer to $3,000. But prices surged throughout 2021 and have increased steadily for most of 2022.
The reason: A lack of available housing. "New York is woefully undersupplied and unable to absorb all the people who want to live there, creating fierce competition for available rentals," said Crystal Chen, a Zumper spokesperson.
And demand is not expected to subside. "More people have moved to the New York area in 2022 than was typical pre-pandemic," said Chen.
- Median rent in December 2022: $3,102
- Median rent in December 2020: $1,825
- Percent change: 70%
As a "spillover city," Jersey City is absorbing demand from people who are priced out of nearby New York, says Chen.
Similar to New York, demand isn't expected to go down anytime soon. "We've seen record numbers of applications for apartments" in areas around New York City, Chen says.
- Median rent in December 2022: $3,009
- Median rent in December 2020: $2,143
- Percent change: 40%
"Like most large cities in the country, Boston's housing market is undersupplied," said Chen. However, it's especially bad in Boston due to "prohibitive zoning laws that favor single-family homes."
Additionally, "new inventory coming online is skewed toward the luxury market, which is pushing median asking prices even higher," she said.
- Median rent in December 2022: $2,975
- Median rent in December 2020: $2,668
- Percent change: 12%
While New York was the most expensive rental market in the U.S. in 2022, San Francisco had held the title for the six years prior, according to Zumper's data. It's still an expensive place to live at nearly $3,000 for a one-bedroom.
Luckily, rent prices have not climbed back up to the city's pre-pandemic peak of $3,700 in 2019. Even so, "it would take a large market shift for San Francisco to fall out of the top five," said Chen.
- Median rent in December 2022: $2,705
- Median rent in December 2020: $1,647
- Percent change: 64%
As with many markets in Florida, Miami has seen an influx of new residents in the past couple of years.
"In February 2021, Miami ranked as the 14th-most expensive rental market," said Chen. "By March 2022, it became the fourth-most expensive market in the country. It's held on to the No. 4 spot" since then, she says.