Along with housing prices, rental prices have risen dramatically in the last decade.
According to data from the Department of Housing and Urban Development (HUD), the average rental price for an apartment is about $1,400 per month in 2020, an increase of 32 percent in nominal dollars from 2010.
Some cities have experienced much larger increases in rent, but income has not kept pace.
Economic data from the Bureau of Labor Statistics, which compares the relative change in prices paid by consumers for goods, services, and housing, shows that rent and housing prices are increasing at a faster rate than other items.
Home sale prices have more than rebounded from the crash in 2008, while rent prices have risen steadily, showing only a slight dip during the last recession. When compared to other goods and services—including food, clothing, and transportation—both rented and owned housing are becoming relatively more expensive.
While average rent in the U.S. has increased by more than 30 percent over the last decade, some cities and states have experienced much larger increases.
At the state level, the biggest increase in rental prices occurred in the Pacific Northwest. Washington and Oregon recorded increases of nearly 74 and 67 percent, respectively.
Conversely, rents increased more modestly in many Southern and Northeast states, such as Mississippi, Louisiana, Rhode Island, Connecticut, and Delaware. Out of all states, Nevada experienced the smallest increase in average rent since 2010, at only 4.5 percent.
To find the metropolitan areas with the largest increase in rental prices over the past decade, researchers at Self Financial analyzed the latest data from HUD and the Census Bureau.
Researchers ranked metro areas according to the average 10-year change in rent across five different rental sizes. They also calculated the 10-year change in household income, the median rent for a studio, 1-bedroom, 2-bedroom, 3-bedroom, and 4-bedroom apartment, and the percentage change in rent for each type.
To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis.
Additionally, metro areas were grouped into size cohorts based on population size. In the report, small metros have between 100,000 and 349,999 residents; midsize residents have between 350,000 and 999,999 residents, and large metros have at least 1,000,000 residents.
The analysis found that in the Oklahoma City metropolitan area, rental prices have increased by 32.5% over the past decade. Here is a summary of the data for the Oklahoma City, OK metro area:
- Average 10-year change in rent (all sizes): +32.5%
- 10-year change in median household income: +34.4%
- Median studio rent: $729 (+31.6%)
- Median 1-br rent: $772 (+28.7%)
- Median 2-br rent: $965 (+31.8%)
- Median 3-br rent: $1,311 (+30.2%)
- Median 4-br rent: $1,604 (+40.5%)
For reference, here are the statistics for the entire United States:
- Average 10-year change in rent (all sizes): +32.1%
- 10-year change in median household income: +30.8%
- Median studio rent: $937 (+29.5%)
- Median 1-br rent: $1,053 (+29.1%)
- Median 2-br rent: $1,293 (+32.8%)
- Median 3-br rent: $1,723 (+33.7%)
- Median 4-br rent: $2,005 (+33.5%)