The Complete 2023 Guide to Rent Prices in the US

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Charting Success: 2023 Wraps Up with Optimism and Growth

2023 was an odd year for rents. In a typical year, rental prices follow a well-trod pattern. Seasonal declines earlier in the year then lead to seasonal increases through the summer and fall, before the numbers fall off as the winter progresses.

Not this year.

From January to December, rents exhibited unusual stability across all property types and bedroom counts, a departure from the usual upward trajectory.

Here’s the headline rent price data through December 2023:

• $1,855/mo: 3 Bedroom SFR median asking rent

• Up $135 or 7.8% vs. $1,720 in December 2022

• Up $5 or 0.3% vs. $1,850 in November 2023

• $1,295/mo: 1 Bedroom Apartment median asking rent

• Down $15 or 1.1% vs. $1,310 in December 2022

• Up $10 or 0.8% vs. $1,285 in November 2023

• $1,450/mo: 2 Bedroom Apartment median asking rent

• Up $13 or 0.9% vs. $1,437 in December 2022

• Up $5 or 0.3% vs. $1,445 in November 2023

For more on Dwellsy’s rent reporting methodology, please check out our article on the topic.

Median Asking Rent, December 2022 to December 2023

A look at the data over the past three years puts the most recent December rent changes in context. While we have seen an overall significant move up in 3-bedroom single-family home rental prices since January of 2021 (a 22.3% increase), rent for 1-bedroom apartments has actually declined by 1.5% during this time.

Why the Difference In Rent Change Between SFR and Apartments?

Over the past few years, there has been a significant transformation in consumer housing preferences. The most prominent shift has been towards a greater appreciation for larger homes, driven by the increasing number of people working remotely and spending more time in their residences. In many instances, this change has prompted renters to allocate more of their budget towards securing additional space, possibly utilizing savings previously spent on commuting expenses.

Furthermore, many individuals and families have taken advantage of the newfound freedom to reside in more budget-friendly locations, no longer tethered to proximity to their workplaces. Consequently, they have been able to upgrade to larger homes while maintaining or even reducing their housing expenses. To illustrate, a monthly budget of $2,030 can secure a three-bedroom home in Nashville, Tennessee, whereas $2,017 would only cover a one-bedroom apartment in Washington, D.C.

As a result of these developments, there has been a notable difference in demand between smaller rentals, particularly those at average or median price levels, and larger homes, including single-family properties. A look at the data in the chart below highlights the striking disparity between smaller apartments and more spacious rentals. Rent growth has been most pronounced for three-bedroom single-family homes (SFR), followed by four-bedroom homes, two-bedroom homes, and three-bedroom apartments. Meanwhile, both studio and one-bedroom apartments have experienced actual decreases in rent since January of '21.

Why are 2-Bedroom Apartment Rents Growing Faster than 1-Bedroom Apartments?

When examining national rent levels for 2-bedroom apartments compared to 1-bedroom apartments, an interesting pattern emerges. In most cases, there tends to be a premium associated with 2-bedroom units, yet the national data reveals only a marginal difference.

This phenomenon can be attributed to densely populated urban areas, where rentals in general are more expensive, and there is a higher prevalence of smaller apartments. Conversely, in more spacious settings like suburbs, small cities, and rural regions, 1-bedroom apartments are less common, with a greater abundance of 2-bedroom options. Consequently, on a median national scale, these two types of apartments tend to have similar pricing.

However, since the start of 2021, we have witnessed a divergence: 2-bedroom apartments have become more expensive relative to their 1-bedroom counterparts. This shift aligns with an overall trend favoring larger living spaces. With more people working from home and requiring additional room within their residences, there is increased demand for larger homes and apartments, resulting in higher rent increases for these larger properties.

A key driving factor in this dynamic has been the substantial increase in the supply of new apartment units, leading to greater availability of rentals at a time when demand is not exceptionally high.

Nevertheless, it's important to note that there is a disparity in the data between premium apartments and more typical, middle-class rentals. Premium apartments have continued to experience higher rent growth, and certain cities with dense apartment offerings, such as New York City, have also witnessed significant rent hikes.

‍Most Expensive Large Cities for 3-Bedroom Single-Family Home Rents

Month after month, California cities top the charts for the most expensive single-family home rental markets in the country, with Los Angeles, San Jose, San Francisco, and San Diego taking the top four spots yet again in December. The Riverside-San Bernadino-Ontario MSA is also on the list (9th), so California cities claim fully half of the most expensive rental cities in the country for single-family home rentals.

It is interesting to note that in most of these markets, rent increases have fallen off considerably. In the case of the Los Angeles and New York MSAs, the higher percentage increases this month stems are more about a dip in prices last December (available asking rents in both markets were ~$250 less than in the months before and after).

Most Expensive Large Cities for 1 Bedroom Apartment Rentals

Apartment rents are certainly no picnic for renters, but it’s been remarkable to see the rent rollercoaster happening in the persistently most expensive city in the country - New York.

Across the NYC metro area, median rents have now declined by more than 7% from their peak - they’re down from $3,241 in May to $3,010 in December. A few months ago, we were looking at 10%+ year-over-year price increases in NYC, but now the year-over-year rent increase is less than 1%. That said, in the past few months we have seen stablility in NYC apartment rents, so perhaps the slide has ended for now.

Renters in the other top 10 most expensive markets have not been as lucky, but at least the rent has been relatively stable, even down in some markets, like Boston, MA, Washington, DC and Miami, FL.

Most Expensive Small Cities for 3 Bedroom Single-Family Home Rents

Over the course of the past two years, many renters found their way to smaller cities with great amenities or attractions (California/Florida/Arizona sunshine, ski access in the mountains!), and those on this list saw the highest rent as a result.

Once again the same three cities are in the top spots on the list, though they do keep switching places from month to month. In December, Naples-Marco Island, FL, beat out Oxnard-Thousand Oaks-Ventura, CA, and Salinas, CA (home to Carmel-By-The-Sea).

Of note, Naples-Marco Island, FL had uncharacteristically high rents in December 2022, which makes the year-over-year rent change number surprising. If we are to compare to January of 2023 for Naples/Marco Island, we would see a much more modest rent drop of about 7%.

Most Expensive Small Cities for 1 Bedroom Apartment Rentals

Smaller cities are often some of the most challenging places to find great apartment rentals and the top 10 on this list are no exception. We’re not at NYC levels on the rent here, but rent for a 1 bedroom in each of these markets exceeds $1,675 per month and goes as high as $2,150/mo in Santa Barbara, CA - if you can find one.

A couple of cities - Oxnard-Thousand Oaks in California and North Port-Bradenton-Sarasota in Florida - have experienced particularly dramatic growth in rent over the past year, leaping onto this list for the first time with 18%-21% year-over-year growth in rent.

Cities With The Fastest Growing 3-Bedroom Home Rent in 2023

Nationwide, single-family rentals have grown in price at a higher rate than apartments over the past year, and in these 10 markets, that price increase is felt most dramatically.

This month, Mobile, AL shows as the city with the most dramatic increase in median rent for available units topping 32% growth in monthly rent.

Albany-Schenectady-Troy, NY, and Rocky Mount, NC round out the top three with 29% year-over-year rent increases.

Cities With The Fastest Growing 1-Bedroom Apartment Rent in 2023

In contrast to the national picture where overall, rents for 1-bedroom apartments have been flat to down over the past year (or past three years!), there are markets that have seen significant increases in rent levels for these types of properties.

Grand Junction, CO takes the top spot this month, reflecting a large influx of higher priced units in that market in the final quarter of the year.

Corpus Christi, TX, Ellensburg, WA, St. Cloud, MN, and Eau Claire, WI round out the top five, each increasing rents for 1-bedroom apartments by 33% or more in the past year.

Apartment markets in smaller cities, like those in this list, can be highly volatile, influenced by the delivery of just a few new buildings in a particular market, so please keep that in mind with this particular cohort.

How Does Rent Compare in Different Regions of the Country?

We recently took a look at how the rent compares across different U.S. regions and we were quite surprised to see the results.

For 3-bedroom house rentals, the Western states like California, Washington, and Oregon are dramatically more expensive than other parts of the country. The Southwest, Southeast and Northeast are hand in hand for second place and the Midwest comes in with the lowest costs.

Interestingly, the median asking rent for these homes in the Western states is nearly a full $1,000 more expensive than those in the Midwest - Ouch.

With 1 bedroom apartments, the Western and Northeastern states are the most expensive, followed by the Southeast, Southwest and Midwest. Midwestern apartments are just more than half the cost of those in the West and Northeast.

It’s notable that the West is not all by itself at the top of the expense pile here the way it is for 3-bedroom homes.

In the past year, 1-bedroom apartment rent costs in the Southwest have trended up slightly, while all other regions of the country are flat to down.

For 3-bedroom rental houses, the continued uptick in the Northeast and Midwest is notable, particularly since those are two of the less expensive areas of the country for these types of rentals.

Average Rent vs. Median Rent

While average rent is the more widely used term, here at Dwellsy, we use the median of the data set for each property type because of the fact that rent prices can be priced up to $20,000 and beyond, but cannot go below $0.

This asymmetrical data creates a situation in which the average and the median are substantially different and the average is always higher than the median.

Dwellsy believes the median is the most representative for this analysis since it more accurately represents what renters are actually seeing and paying when it comes to rentals.

For more on our methodology and approach, please visit our detailed methodology description.