The COVID-19 pandemic pushed rental prices up across the country, and in two states, renters are paying more than $2,000 a month.
Hawaii and California topped the list of the states with the most expensive median rents, at $2,132 and $2,101, respectively, according to a new report from Rentec Direct, a property management software company.
Washington is the third-priciest state, at $1,785 a month, followed by New Jersey ($1,758) and Florida ($1,752).
Where rents have climbed the most
Rentec analyzed rent data over the past five years and found that rents increased an average of 31% from 2019 to 2024.
New Mexico, Tennessee, Georgia, and Maryland all saw rent increases of between 61% and 67% during that time, but Arizona topped the list as the state with the largest rent jump.
Prices there increased by an astronomical 84%. That resulted in a median increase of $532 per year, to $1,641.
Other states that saw the highest-dollar rent increases included Delaware ($447), Washington ($436), New Jersey ($422), and Maryland ($383), all of which have seen population growth.
“Arizona, New Mexico, and Tennessee have all seen population spikes driven by factors like retirement migration, strong job markets, low taxes, and a lower cost of living,” Kaycee Miller, real estate investor, landlord, and co-owner of Rentec Direct, tells Realtor.com®. “This influx is putting pressure on already strained housing supply, intensifying competition and pushing up rental prices.”
Arizona’s population grew by around 270,000 people from 2019 to 2024, and Tennessee’s population grew by around 300,000 in the same period.
While other states like South Carolina, Alaska, Idaho, Montana, and Wyoming might not have high median rents—Wyoming’s monthly median rent, for instance, is $1,102—they did see some of the most significant percentage increases across the board, of between 53% and 56%.
Miller says it’s because landlords in these states are able to price purely on demand.
“States experiencing rapid population growth, limited housing supply, and no rent-control laws are seeing the steepest rent increases,” says Miller. “Of the 10 states where rents rose by 50% or more over the past five years, none have rent-control policies at the state level. Without rent control, it’s not surprising to see more pronounced rent increases as housing providers adjust prices to keep pace with market value and remain competitive.”
A few bright spots in the rental market
While the majority of states saw rental increases, there were some surprising decreases around the country.
In New York, the monthly median rent remains on the high side, at $1,394. However, research showed that the state experienced an increase of only about $160 from 2019 to 2024.
In Louisiana, median rent prices decreased from $846 in 2019 to $825 in 2024, after peaking at $935 in 2023.
These shifts could signal that rental markets are finally beginning to stabilize in these areas.
Minnesota, meanwhile, saw an impressive 34% decrease in rent over the past five years.
In 2019, median rent peaked at $1,285. By 2024, it had decreased to $849. Much of that is due to a concerted effort by the state, under its Minneapolis 2040 plan, to reduce single-family housing in favor of higher-density housing.
According to Rentec’s report, the most affordable rent in the country can be found in West Virginia ($693), Louisiana ($825), Minnesota ($840), Nebraska ($850), and South Dakota ($901).
The future of renting
Rentec’s experts predict that inflation and high interest rates could cause rent price growth to slow. On the other hand, supply chain disruptions and tariffs could affect the availability and cost of new construction, which could put a premium on rental units in limited markets.
“Rent control and stabilization policies aim to improve housing affordability, reduce displacement, and promote economic diversity—especially in large cities,” says Miller.
“But they can also reduce availability, discourage investment and development, and increase market rents in areas without regulations. The challenge is finding balance in supply and demand for both landlords and tenants—small, consistent rent increases help landlords keep pace with costs and market rates, while offering tenants more stable and predictable housing expenses.”