If you are planning to relocate to a different state, knowing the average rent price in an area can give you a better sense of where you can go and what you can expect to pay in rent.
The average rental price varies across the nation, with geography being a key contributing factor. For instance, housing in the coastal states is often three to four times the cost of properties in the Midwest, per Earnest.com.
In this guide, we've listed the five states with the most expensive average monthly rent prices.
5. Massachusetts
The housing market in Massachusetts is highly competitive. Coupled with limited inventory and high demand, these have led the average monthly rent price in the state to hit $1,811. It is also important to note that Boston has the highest rental price in the state, with an average price of $2,177.
4. New Jersey
Located in the Northeast, New Jersey has an average monthly rent of $1,850. Apart from high housing and living costs, homeowners in the state also have the highest property tax rates in the country, which landlords often pass onto tenants through the monthly rent.
3. District of Columbia
Apart from a housing market shortage, property owners in the District of Columbia are raising rent in an effort to offset income lost due to increased vacancy rates and rent increase prohibitions introduced by the government during the peak of the COVID-19 pandemic. Coupled with a high cost of living and above-average salaries, the average rental price in the nation's capital is $ 1,901 per month.
2. California
The California housing market is currently facing a shortage, especially in metros where there is a high demand for shelter. This brought up the state's average monthly rent to $1,958. Fortunately, California's housing market has seen an influx of rental supply, which is now helping lower the rent by 2.4% year-over-year.
1. Hawaii
Hawaii tops the list for states with the most expensive average rent at $2,418 per month. There are several contributing factors. First, the tropical island is experiencing a housing shortage, which brought up the median home price to over $1 million. This, in turn, led to an increase in rent rates and condominium prices.
Apart from a housing shortage, Hawaii's cost of living is also higher, especially in the mainland. Its citizens also have the second-highest income tax burden in the country.
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