Renters Beware: You’ll Pay Higher Rents in These 3 Midwestern Cities Than Ever Before
In most places around the U.S., rent has become more affordable in recent months. According to Realtor.com’s April Rent Report, April marks the ninth consecutive month for year-over-year rent decline for zero- to two-bedroom rentals.
Unfortunately for those in the Midwest, there are three cities in the region that are bucking the trends. Here are the cities where renters can expect to pay record-high amounts.
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3 Midwestern Cities Where Rents Have Reached All-Time Highs
Rents in Indianapolis, Milwaukee and Minneapolis hit new record highs since March 2019, the Realtor.com report found.
In Indianapolis, the median rent is now $1,334, a 4.5% increase from April 2023 and a 38.2% increase from April 2019.
The median asking rent in Milwaukee has reached $1,671, a 3.8% increase from last year and a 31.1% increase from 2019.
In Minneapolis, the median asking rent is now $1,529, a 2.5% increase from April 2023. However, this is only an 8.2% increase from April 2019, which suggests a relatively stable rental market.
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Why Are Rents Increasing in the Midwest?
There are a number of factors leading to increased rents in these Midwestern cities.
According to the report, “The robust labor market in these metropolitan areas may serve as a significant driver of accelerated rent growth. As of March 2024, the unemployment rates in Indianapolis, Milwaukee and Minneapolis were 3.7%, 3.6% and 3.0% respectively, compared with an average unemployment rate of 3.9% in the Midwest and 3.8% across the top 50 metros.”
Another factor is the lack of available rentals.
“On the supply side, the completion of new multifamily homes has been growing at a relatively slow pace, contributing to a decrease in rental vacancy rates,” the report states. “In Indianapolis, the average rental vacancy rate decreased from 11% in 2022 to 8.7% in 2023. In Milwaukee, it dropped from 5.7% in 2022 to 4.2% in 2023. However, in Minneapolis, the average rate increased from 6.8% to 7.9% between 2022 and 2023.”
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This article originally appeared on GOBankingRates.com: Renters Beware: You’ll Pay Higher Rents in These 3 Midwestern Cities Than Ever Before
