Expert says that people are moving to 8 U.S. cities where living is affordable rather than paying higher rents.

An October report from the Bank of America Institute states that the increasing cost of rent is prompting individuals nationwide to search for more affordable locations.

According to the institute's report, the top eight cities where people are relocating for lower rent were determined based on a sample of Bank of America customers who had open consumer checking, savings, credit, and/or other investment accounts during every quarter from Q4 2020 to Q3 2024.

According to the report, the fixed sample size of 45 million customers was used to establish the moving pattern based on their home addresses.

Since the start of the pandemic, renters have been relocating from expensive cities and towns in the West and Northeast to more affordable options in the South and Midwest.

Some of the largest net outflows of residents have occurred in major metropolises such as New York, Boston, San Francisco, San Jose, and Los Angeles.

"According to Joe Wadford, an economist at the Bank of America Institute, consumers prefer to relocate to cheaper cities or downgrade within their current city rather than pay a higher rent."

Wadford says that the report found it to be especially true among higher-income households.

""As opposed to a small growth, there has been a significant increase in new rents for high-income households relocating within the same city," he remarks. "These households may have overspent during the pandemic by renting out a larger unit than they actually needed, so they are now downsizing within the city," he adds."

In September 2024, the average consumer's rent payment increased by 3.7% year-over-year, according to data from the Bank of America Institute.

Top 8 U.S. cities where people are moving for cheaper rent

• Cleveland, Ohio
• Indianapolis, Ind.
• Las Vegas, Nev.
• Columbus, Ohio
• Jacksonville, Fla.
• Austin, Texas
• Phoenix, Ariz.
• Nashville, Tenn.

Two Ohio cities ranked among the top 8 on the Bank of America Institute list, while the median rent price in Ohio is $1,300, $750 below the national median of $2,050, according to Zillow.

Since last summer, Cleveland experienced a significant increase in rent prices, with a 7.2% hike.

Cleveland is known for hosting major sports teams such as the Cleveland Cavaliers, Cleveland Guardians, and Cleveland Browns. Additionally, it houses the Rock & Roll Hall of Fame and the Cleveland Museum of Art, which offers free admission to the public.

According to Zillow, Columbus had the highest average rent among Ohio's largest cities, with a 4.7% increase from last year and a 7.7% difference from Cleveland.

Between 2014 and 2023, the size of apartments in the city increased, which is equivalent to the space of a bedroom closet.

The Ohio State University and Ohio Stadium are located in Columbus, the state capital, which is also known as the birthplace of the Wendy's restaurant chain.

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