The U.S. rental market has been on a rollercoaster ride over the last few years. After pandemic-related slowdowns and temporary rent freezes, prices have rebounded in some places, at staggering rates. A new analysis by Rentec, as featured in the New York Post, highlights the states where renters are feeling the sharpest pinch. From coastal hubs to mountain states, these shifts reveal both regional pressures and nationwide affordability challenges.
The Leaders: Hawaii and California
At the top of the list are Hawaii and California, long considered two of the most expensive states to live in and now even more so.
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Hawaii: The median rent sits at $2,132, making it the highest in the nation. Limited land availability, coupled with the state’s reliance on imports for most goods, creates a cost-of-living spiral that keeps pushing housing costs higher. Tourism also fuels demand, as short-term rentals compete with long-term housing availability.
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California: Not far behind, California’s median rent is $2,101. Here, the story is tied to chronic housing shortages. Strict zoning laws, environmental hurdles, and local resistance to new developments have slowed construction for decades. The result? Demand keeps outpacing supply, driving rents steadily upward in major cities like Los Angeles, San Francisco, and San Diego.
The Rising Stars: Montana and Idaho
While Hawaii and California dominate in sheer price, the fastest growth rates are found in states many wouldn’t immediately associate with high housing costs.
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Montana has seen a projected 20.7% increase in rent prices a staggering jump compared to the national average. Once considered a haven for affordability, the state’s surge in popularity among remote workers and lifestyle seekers has put immense pressure on housing stock.
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Idaho follows closely, with rent prices projected to grow by 20.3%. Boise, in particular, has transformed from a mid-sized, affordable city into one of the hottest housing markets in the U.S., attracting out-of-state movers in search of lower costs ironically contributing to the very rent hikes they sought to avoid.
Beyond the Obvious: Other States on the Move
While Hawaii, California, Montana, and Idaho dominate the conversation, other states are also experiencing notable increases.
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Arizona, Utah, and Colorado continue to see steady upward movement as population inflows outpace housing development. These states have become attractive relocation destinations due to job opportunities, lower taxes compared to California, and lifestyle amenities.
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Florida is another strong contender, with rents spiking in metro areas like Miami, Orlando, and Tampa. The state’s growing population, combined with hurricane recovery costs and insurance rate hikes, puts extra pressure on affordability.
Not All States Are Seeing Growth
Interestingly, the data also shows that not every state is experiencing rent inflation. States like Rhode Island, Wyoming, and South Dakota are seeing rent declines. This suggests that while many markets are overheated, others are cooling down as supply stabilizes or as demand shifts elsewhere. For renters willing to move, these states may offer a financial reprieve.
What’s Driving These Trends?
Several forces are converging to shape today’s rent spikes:
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Migration Patterns
The rise of remote work has allowed more people to move away from coastal hubs to states like Idaho, Montana, and Utah. While attractive at first, these moves have inflated demand in previously stable markets. -
Limited Supply
Across the U.S., housing construction hasn’t kept pace with population growth. In states like California, regulatory bottlenecks make new housing development especially difficult. -
Tourism and Short-Term Rentals
In Hawaii and Florida, tourism adds extra pressure as short-term rentals reduce availability for long-term tenants. -
Inflation and Rising Costs
Higher interest rates and inflation have made homeownership less attainable, funneling more people into the rental market and further driving up competition.
The Human Impact
For renters, these price hikes translate into difficult decisions. Many households are forced to spend a disproportionate share of their income on housing, leaving less for savings, healthcare, or education. In high-growth areas, long-time residents often find themselves priced out of their own communities.
In Hawaii, for example, locals increasingly compete with investors and vacation rental operators, pushing many to consider leaving the islands altogether. In Montana and Idaho, new arrivals from high-cost states have unintentionally pushed rents to levels that strain long-time residents.
What Renters Can Do
While broad market forces are hard to control, renters do have strategies to navigate these challenging conditions:
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Explore Less Popular Areas: In fast-growing states, smaller towns outside major metro hubs often remain more affordable.
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Negotiate Lease Renewals: Landlords may be more flexible on rent increases than expected, especially if offered a longer lease term.
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Consider Roommates or Shared Housing: Splitting costs is becoming an increasingly common solution in high-rent states.
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Stay Informed on Tenant Protections: Some states and cities offer rent control measures or legal protections that can help renters manage costs.
Conclusion
The rental market in the U.S. is evolving rapidly, with Hawaii and California leading the nation in highest rents and Montana and Idaho setting the pace in fastest growth. Meanwhile, a handful of states are experiencing relief, highlighting the uneven nature of housing pressures across the country.
For renters, the key takeaway is clear: geography matters more than ever. Whether you’re considering a move, renewing a lease, or just trying to stay ahead of trends, understanding where rents are rising fastest and why can help you make smarter housing decisions.
Source
Original article: “These states are where rent has spiked the most”, New York Post (May 4, 2025) – Read here