Rent 2023: These Cities Will Have The Most Expensive Apartments Next Year
The housing market has not been kind in 2022, due to inflation, soaring mortgage and interest rates. And the rental market has been quite difficult as well. Now, with fears of a recession looming combined with a lack of supply, 2023 is shaping up to be a pricey one as well.
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Indeed, in its 2023 forecast, Realtor.com said that at a national level, it expects rent growth of 6.3% in the next 12 months.
“Specifically, rental demand may be stronger in urban areas within big metros, a departure from both recent trends and what is expected in the for-sale market. Unlike the recent trend of renting in the suburbs to take advantage of remote work to lower housing costs, the premium on urban rentals has shrunk sufficiently to draw people back to big cities to enjoy their diverse social and cultural offerings,” Danielle Hale, Realtor.com chief economist, said in the projections.
And in its own projections, Zumper said that while the economic landscape remains unclear, “one thing we can predict with confidence: New York City will end 2023 as the reigning most expensive metro for renters in the country. It’s so far ahead of the next most expensive cities of Boston and San Francisco that something seismic would have to happen to unseat New York.”
Here what Zumper’s predictions for 2023 most expensive rents are:
New York City
While a lot of people left the city during the pandemic, the trend has reversed quite quickly.
The median one-bedroom rent in New York City is currently a whopping $3,740 per month, largely due to the city being undersupplied.
In comparison, CNBC reports that the median rent in December 2020 was $2,399- a 56% change.
Jersey City
Jersey City saw its median one-bedroom rent jump by 48.7% year-over-year, according to Zumper. The “spillover city” is helping absorb demand from New York City, pushing rents to rise.
CNBC reports that the median rent in December 2022 is $3,102, compared to $1,825 in December 2020 — an eye-popping 70% change.
Boston
Boston had a median rent of $3,009 in December 2022, compared to $2,143 in December 2020 — a 40% change.
San Francisco
Zumper notes that the city lost its title of the most expensive city in the nation -a title it had previously held for six consecutive years.
According to CNBC, median rent in December 2022 stood at $2,975, compared to $2,668 in December 2020 — a 12% price change.
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Miami
The median rent in December 2022 was $2,705, a 64% increase from $1,647 in December 2020, according to CNBC. Miami continues to be attractive and skyrocketed on Zumper’s list of the most expensive cities for renters.
Indeed, in February 2021, Miami was the 14th most expensive rental market and by March 2022, it became the fourth most expensive market in the country, Zumper noted.
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This article originally appeared on GOBankingRates.com: Rent 2023: These Cities Will Have The Most Expensive Apartments Next Year
