10 States With The Highest Rent Increases

Rising home values coupled with increased interest rates are causing many people to rethink whether now is the right time to buy a house, and that’s pushed lease rates higher than they’ve been in years.

Florida and Colorado have seen rent prices increase by more than 45% since 2020, according to an analysis of Zillow data from luxury real estate experts at RubyHome in California.

Florida’s average rent increased to $2,128 in 2023 — an increase of 45.77% over 2020. Because Florida doesn’t have retirement taxes, it attracts a high percentage of retirees. The Sunshine State also is a popular vacation destination, which affects rental prices.

Colorado had the second-highest increase, with rent averaging $2,767 — up 35.77% over the 2020 price. People are attracted to Colorado’s thriving job market and beautiful scenery.

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Top 10 States With Highest Rent Increases

Six of the 10 states showing the greatest rent increases are in the West, a region that’s become attractive to renters. Montana has a low population density, and Idaho has lower tax rates than many states and lots of opportunities for remote workers.

But Tennessee also has good tax rates, along with plenty of space for people to relocate to. The state is generally more affordable than others when looking at overall living expenses.

For most people, the goal should be to have a rent-to-income ratio of around 30%, but many renters are seeing ratios of up to 57%, indicating that rent prices are too high.

The average rent nationally reached $2,018 in March, up 26.47% from 2020. For this to be affordable, at the 30% ratio, a renter would need to earn about $6,700 per month or $80,720 annually.

But the average renter in the U.S. is in their late 30s, has a college education and earns less than the national average of $67,500, according to the RubyHome analysis.

“It will be interesting to see if municipal councils enact rent-control measures to bring down the cost of living and make renting more affordable for those who need it,” a spokesperson for RubyHome said.

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