The fastest-rising and -falling U.S. rents are revealed.

• Since June 2023, rents for one- and two-bedroom apartments have increased by more than 10% in some large U.S. cities, as reported by Zumper.
• The cities mentioned are Syracuse, New York; Lincoln, Nebraska; Chicago; Buffalo, New York; Madison, Wisconsin; Rochester, New York; and New York City.
• Meanwhile, prices fell by at least 5% in other major cities.
• Rent inflation is guided by apartment supply and renter demand.

Despite pandemic-era rent inflation cooling substantially, apartment prices in many major U.S. cities have surged in the past year.

Since June 2023, the monthly rents for one- and two-bedroom apartments in Syracuse, New York, have increased by 29% and 25%, respectively, compared to other big cities, according to Zumper's National Rent Report.

Apartment listings in the largest 100 U.S. cities by population were analyzed for median asking rents by Zumper.

In addition to New York City, rents for one- and two-bedroom apartments have increased by at least 10% in major metros such as Lincoln, Nebraska; Chicago; Buffalo, New York; Madison, Wisconsin; Rochester, New York; and New York City, according to Zumper.

Conversely, renters in other cities are seeing relief.

The analysis shows that rents for one-bedroom apartments have decreased by at least 5% in Oakland, Memphis, Chattanooga, Cincinnati, Colorado Springs, Irving, Jacksonville, Raleigh, Greensboro, and Durham.

Since June 2023, Zumper found that national prices for one- and two-bedroom apartments have increased by 1.5% and 2.1%, respectively.

A one-bedroom apartment in New York costs the typical renter $4,300 per month, according to a recent study.

In Akron, Ohio, and Wichita, Kansas, the lowest big-city rents are $730 per month for a one-bedroom apartment.

What causes rent inflation

Rent inflation is determined by supply and demand, according to Crystal Chen, an analyst who wrote the Zumper report.

Fast-growing rent areas are experiencing high demand, while falling rent areas have an oversupply of apartments.

The vacancy rate in New York City recently dropped to 1.4%, a historic low dating back to the 1960s, according to the New York City Department of Housing Preservation and Development. The vacancy rate "plummeted" from 4.5% just two years ago, the agency said.

In the U.S., the typical new home is becoming smaller. Inflation continues to disrupt retirement plans. The least challenging areas in the U.S. to purchase a home are currently available.

New York City Mayor Eric Adams stated that the demand to reside in our city is exceeding our capacity to construct housing, as evidenced by the data.

Swelling rents can present financial challenges for households.

In May, a typical renter would have spent nearly one-third of their income on a new rental, according to Zillow.

Despite dropping from a recent high of 31% in June 2022, the current home value growth rate of 28% is still higher than the pre-pandemic average of 28%, according to Zillow data.

According to the New York City Department of Housing Preservation and Development, approximately 86% of the city's lowest-income residents (those earning less than $25,000 annually) are severely rent burdened. This has led to an increase in financial strain, resulting in an "alarming increase in missed rent payments and arrears" compared to 2021, the department stated.

High rents can have other cascading impacts.

Fitch stated in a global housing outlook that prospective homebuyers may face limitations in their ability to save for a down payment, which could prevent them from participating in the housing market.

Rent inflation has fallen substantially

Rent inflation plummeted in the early days of the Covid-19 pandemic.

During the health crisis, most individuals stayed indoors, while digital nomads who no longer needed to work in an office left cities for the suburbs and outdoor areas, according to Chen.

Through 2022 and into 2023, rents increased due to return-to-office policies and the movement of people back to larger cities, according to Chen.

The consumer price index shows that annual rent inflation fluctuated between 3% and 4% in the years leading up to the pandemic, peaked at 9% in early 2023, and has since gradually decreased to about 5% in May.