Renters Beware: You’ll Pay Higher Rents in These 3 Midwestern Cities Than Ever Before
Written by
Gabrielle Olya
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
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.
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.
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.”
More From GOBankingRates
