The Top Ten Cities With The Highest Rent Increase In The Last Year

Over the past year, the U.S. has seen a significant rise in rent prices with an average increase of 5.5%. However, some cities have experienced far more substantial hikes, particularly in premium real estate markets where rising home prices have also driven rent increases. 

Among the 1,865 cities analyzed by financial technology company SmartAsset, the Hamptons enclave of Amagansett, New York, saw the steepest rise. Rent prices in this posh locality surged by an astonishing 63% in the 12 months ending May 2023.

Amagansett: A Celebrity Hotspot with the Highest Rent Increase

Amagansett, known for its exclusivity and beachside mansions, leads with the most expensive rent prices in the U.S., boasting an average monthly rental cost of $43,370. It's no wonder that this small town in East Hampton is home to many celebrities, including Alec Baldwin and Sarah Jessica Parker. In fact, a property owned by Parker was recently listed as a summer-long rental for a staggering $95,000.

Surging Rents Beyond the Luxury Market

But soaring rents aren't confined to luxury markets. In Oxford, Mississippi, the average rent prices have increased by 37%, earning it the second spot in the rankings. As a college town, Oxford doesn't have the celebrity appeal of Amagansett, and its average rent, as of May 2023, was a more modest $1,660. Nevertheless, it has seen a steady rise in home prices over the past three years, which has contributed to the recent surge in rents.

Next in line is Orinda, California. This wealthy San Francisco suburb, already known for one of the priciest rental markets in the country, has also experienced significant rent hikes.

The Pandemic Effect on Florida's Rent Market

Florida cities too have seen substantial increases in rent prices. Following the outbreak of the pandemic in 2020, Florida witnessed a wave of migration, which resulted in a significant decrease in available homes compared to 2019. This scarcity has triggered an increase in home prices across many Florida cities, in turn, causing rent prices to steadily climb.

2. Oxford, Mississippi: This college town follows with a 37% rise in rents. Despite the surge, Oxford maintains a relatively modest average rent of $1,660.

3. Orinda, California: Close to San Francisco, Orinda has seen rents rise by 36%, pushing the average rent to a hefty $5,411 per month.

4. Saint Pete Beach, Florida: One of several Florida cities on this list, Saint Pete Beach experienced a 30% rent hike, with the average rent now at $2,820.

5. Auburn Hills, Michigan: Matching Saint Pete Beach's 30% rent increase, Auburn Hills has an average rent of $1,351.

6. Rocky Mount, North Carolina: With a 25% rent increase over the past year, Rocky Mount comes in at sixth place, where the average rent stands at $1,095.

7. Haddonfield, New Jersey: Rents in Haddonfield have risen by 24%, leading to an average rent price of $1,736.

8. Roseville, Michigan: Sharing the same state as Auburn Hills, Roseville also saw rents rise significantly, with a 23% increase leading to an average rent of $1,294.

9. Englewood, Florida: The second Florida city in the top 10, Englewood, experienced a 23% rise in rents, pushing the average to $2,042.

10. Liverpool, New York: Joining Amagansett in representing New York state, Liverpool saw rents rise by 22%, with an average rent of $2,148.

As we can see, rent prices have risen substantially in these cities, driven by a variety of factors such as location, demand, and even the after-effects of the pandemic. Renters should prepare for potential increases as these trends continue to evolve.

SmartAsset's study utilized the Zillow Observed Rent Index for their data comparison, examining all types of homes with up to five rooms. This comprehensive analysis of the U.S. rent market from May 2022 to May 2023 reveals a clear trend: rent prices are on the rise, with some markets feeling the pinch more than others. 

Whether this trend will continue remains to be seen, but the data suggests that for the foreseeable future, renters — particularly in these hot markets — should brace for higher costs.

John Paulus is a licensed Real Estate Broker in Georgia.