Rent Is Dropping the Fastest in These 8 States
While many states are experiencing an increase in rental costs, some are seeing more affordable rates.
- Most people's rent or mortgage payments are the most costly expenses that they pay.
- Rent.com examined year-over-year median rental costs in December 2022 to see which states are seeing an increase in prices and which are seeing a decrease.
- Based on its findings, Idaho, Nevada, Virginia, and Pennsylvania are a few states that saw a decrease in median rental prices.
With increasing living costs, it can be challenging to find affordable housing. While many states are seeing a rise in rent costs, not all are. If you have the flexibility, you may be able to take advantage of more affordable rent costs by moving out of state. Housing is a significant expense for most people, so cheaper rent may help you reduce your expenses so you can improve your personal finance situation. Find out which states are seeing a decrease in rental costs.
Eight states with rapid rental decreases
Rent.com's January 2023 Rent Report examined year-over-year rental pricing changes in December 2022. Here are the states that saw the most significant decrease in rental costs based on its findings:
- Idaho: 5.4%
- Nevada: 2.7%
- Arizona: 2.5%
- Oregon: 2.4%
- Virginia: 1.2%
- Maryland: 1.1%
- Pennsylvania: 0.7%
- Georgia: 0.6%
Median rental price by state
The same report outlined median rental prices for each state. Rent.com looked at available rental inventory and various bedroom types to calculate a simple median. These were the median rental prices in those eight states in December 2022 based on its research:
- Virginia: $1,946
- Maryland: $1,862
- Oregon: $1,768
- Georgia: $1,716
- Pennsylvania: $1,646
- Idaho: $1,642
- Nevada: $1,586
- Arizona: $1,541
All the states above have median rental prices that are more affordable than the national median, which was $1,978 in December 2022.
Don't forget to consider other costs before moving out of state
Can you save money by moving to a state with lower rental prices? Maybe. But before signing a new lease in a different state, you should consider how your finances will change by moving elsewhere. While housing costs may be cheaper, other expenses may change when you move.
Here are some financial considerations to make before planning an out-of-state move:
- State income tax: While not all states have income tax, most do. When you move, your state income tax responsibility may change. Be sure to calculate how that will impact your paycheck.
- Local income tax: You may find that your local income tax responsibilities will differ in a new area. It's best to research this before you pack up and move.
- Vehicle registration and inspection costs: If you own a vehicle, you'll want to research how your vehicle registration and inspection costs might change.
- Transit costs: If you don't drive, you'll want to examine transit costs in your new home. If transit is limited, check to see if you can find a rental in a more walkable area.
- Sales tax: Sales tax is another cost that can differ by state and city. It's a good idea to research the sales tax rate where you plan to move so you're not surprised.
- Insurance: Don't forget to research the price of insurance costs in your new state, like car insurance and rental insurance.
Moving to a new state could be a win for you wallet
If you're struggling to afford rising rental costs where you live now, moving elsewhere could be an excellent way to reduce your expenses to save money. Consider your budget when looking at properties so you don't overcommit beyond your financial means. It's also best to research how other costs may differ when moving out of state.
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