NYC Sees Another Rent Hike — Are Other Cities Raising Rents Too?
Written by
Laura Gariepy
Edited by
Ashley Almario
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Around 1 million New York City residents will soon be at risk of rent increases for their rent-stabilized apartments. The New York City Rent Guidelines Board determined landlords can raise their rates by 3% on one-year leases, with an effective date of Oct. 1.
On two-year leases, the increase will happen in phases. The first year, residents will experience a 2.75% hike. The second year, the rent will go up by 3.2%.
While the price climb seems nominal, many impacted renters worry about their budgets. When you’re living paycheck to paycheck, any additional cost can be tough to absorb.
Still, it could be worse. Occupants of rent-stabilized apartments pay significantly less than the typical NYC renter. The average NYC rent is nearly $3,800 per month, up more than $250 from last year.
So, how is the rest of the nation faring? Let’s find out.
National Rent Price Trends
According to a recent survey by Avail (part of Realtor.com), 65% of landlords plan to raise the price of their rentals in 2023. The prospect of nearly two-thirds of property owners boosting their rates is enough to make any renter anxious. However, there is some good news. Overall, rate hikes are slowing down nationally.
Major Metro Rent Price Trends
Rental price trends vary from city to city. Here’s what’s happening in seven major metros:
Atlanta
Currently, the average rent is about $2,200 per month, down around $50 from last year. “Rental rates are cooling a bit from the highs of the pandemic, but affordability in Atlanta has been majorly impacted by the growth many cities in the South have seen since 2020. More people move here every year,” said Lauren Bowling, licensed real estate agent and blogger behind Financial Best Life.
Chicago
Chicago’s rent price is trending upwards. In the last year, the average rate increased by more than $150, bringing it up to $1,900 per month.
Houston
Houston’s average monthly rent comes in at $1,800. The city’s rental cost is holding steady, with the median price increasing by just $5 since last year.
Miami
Miami’s average monthly rent rivals NYC’s, coming in at $3,500. However, the expense declined by around $500 within the last 12 months.
Phoenix
Phoenix’s average monthly rental fee is trending downwards, too. The price has dropped roughly $90 to approximately $2,000.
San Diego
Currently, San Diego’s median monthly rent is $3,400. Since last year, the cost has decreased by about $110.
Seattle
Seattle’s average monthly rent has dropped by roughly $170 since last year. Currently, the median rate is around $2,300. However, former property management firm owner and certified financial planner of Embolden Financial Planning LLC Tim Melia said, “In Seattle, it appears rents, after nominal changes over the last several months, may be trending up.”
Protect Your Finances
The housing market is volatile for both homebuyers and renters, so it’s wise to know how to prepare for a rent hike. Here are some steps you can take if your landlord surprises you with a rate increase:
- Breathe, and don’t panic. You can figure this out.
- Review your lease. Does it stipulate when or how much your landlord can increase your rent?
- Do some homework. What are similar apartments renting for in your area?
- Check your budget. Can you afford the new price easily, or will you struggle to make ends meet?
- Consider the cost of moving. It can cost thousands to relocate. How does that expense compare with the rent increase?
- Try to negotiate with your landlord. If they’re charging more than the market rate, point that out to them.
“Obviously, landlords are keen to get higher rents for their units, hoping current tenants will stay and pay. If a tenant is going to leave, turnover and vacancy are usually unwelcome expenses. A landlord may be inclined to be flexible in some sort of compromise to prevent vacancy, which will benefit the tenant if their intent is to stay,” Melia said.
Pro Tip: Ask your landlord for a longer lease at a lower rate. You’ll save money each month, and your landlord won’t have to worry about filling a vacancy for an extended period. Both parties win!
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