Rental prices have risen in these five central districts. What to know before moving

Los Angeles

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As higher interest rates and rising property values ​​prevent more families from buying a home, the demand for rents has soared, with rental prices soaring in the sunniest states.

Rents for single-family homes ballooned during the first half of 2022, reaching a national average of $2,495 a month — a 13.4% increase over the same period in 2021, according to a new report from national real estate brokerage HouseCanary.

The report found that while cities in warmer climates such as California and Florida dominated the list of the highest average rental rates, Midwestern states such as Ohio took the top spots for affordable rent.

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The results come as more Americans, including some income earners, are living from paycheck to paycheck amid rising costs.

Annual inflation jumped 9.1% in June, growing at the fastest pace since late 1981, according to the US Department of Labor.

5 US metros with the most expensive monthly rents

Urban real estate markets in the United States experienced the highest average monthly rents for a single family during the first half of 2022:

  1. Los Angeles; Long Beach, California; Anaheim, California: $4,664
  2. San Diego; Carlsbad, CA: $4,617
  3. Bridgeport, Connecticut; Stamford, Connecticut; Norwalk, Connecticut: $4,352
  4. San Jose, California; Sunnyvale, California; Santa Clara, California: $4,294
  5. Oxnard, CA; Thousand Oaks, CA; Ventura, CA: $4,259

5 US metros at the lowest cost monthly rentals

Urban real estate markets in the United States had the lowest average monthly rents for a single family during the first half of 2022.

  1. Mobile, Alabama: $1,419
  2. Dayton, Ohio; Kettering, Ohio: $1,412
  3. Wichita, KS: $1,397
  4. Akron, Ohio: $1,361
  5. Canton, Ohio; Massillon, Ohio: $1,314

Remote work could hamper wage growth

The pandemic has accelerated the trend of leaving expensive coastal cities for more affordable areas as more Americans switch to remote work.

And a record number of U.S. homebuyers are still eyeing cheaper options from cities like San Francisco, Los Angeles and New York, according to a report from Redfin in July. However, remote work may come at a hidden cost.

While many have enjoyed the perks of working remotely, research shows that it may hinder wage growth over time, according to a working paper published by the National Bureau of Economic Research.

There may be other “hidden” relocation expenses

While moving to a cheaper area may lower your rent or mortgage, other unexpected costs can hurt your budget, experts say.

“Losing your network or village is a big hidden expense,” said certified financial planner Bill Parrott, president and CEO of Parrott Wealth Management in Austin, Texas.

Losing your network or village is a huge hidden cost.

Bill Parrott

President and CEO of Parrott Wealth Management

Without access to friends and family, he said, costs such as childcare, pet care, and more can add up quickly.

Traveling may be more expensive than in a smaller city, depending on the airport or transportation options, said Caleb Pepperday, a Pittsburgh-based CFP and wealth advisor at JFS Wealth Advisors.

“It’s best to research some of these costs before moving to a new city to help make your decision,” he said.

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