Renters across the United States are facing an increasingly familiar challenge: higher monthly housing costs. While rent increases have become common in many parts of the country, some cities are experiencing particularly sharp spikes. A recent analysis by SmartAsset, as reported in the Idaho Statesman, highlights which U.S. cities saw the largest year-over-year rent increases from February 2024 to February 2025.
This data gives a clearer picture of where affordability is slipping away most quickly and what renters, policymakers, and landlords need to know about the evolving market.
Source: Idaho Statesman
Top Cities With the Biggest Rent Increases
1. Newark, New Jersey
Newark leads the list, recording an 8.1% increase in average rent over the past year. As one of New York City’s closest neighbors, Newark is seeing the spillover effects of NYC’s already sky-high rental market. Many commuters who can’t afford Manhattan or Brooklyn rents are looking to Newark for more affordable housing options. That extra demand, combined with limited rental stock, has created rapid upward pressure on prices.
2. Cleveland, Ohio
Cleveland also experienced one of the fastest rent hikes in the country, signaling that the Midwest is no longer immune to the affordability crunch. At nearly 7% growth, Cleveland’s rent surge reflects both an inflow of new residents and an aging housing stock that limits supply.
3. Columbia, South Carolina
Columbia has been gaining attention as a growing hub for young professionals and families seeking lower costs of living. But demand has caught up fast, and with rents up over 6%, the city now faces challenges balancing its reputation for affordability with actual market trends.
4–10. Other Cities Feeling the Squeeze
The analysis also highlighted Fort Wayne, Milwaukee, St. Petersburg, Toledo, Detroit, Lexington, and Rochester, all of which saw rent increases ranging from 5% to nearly 7%. Many of these markets were historically considered “budget-friendly,” but the new numbers suggest that even secondary and smaller cities are no longer safe havens from rising rent.
The Bigger Picture: Expensive Cities Still at the Top
While percentage growth tells one story, the absolute cost of renting tells another. Cities like Boston, New York, and San Francisco continue to dominate the list of the nation’s most expensive rental markets.
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Boston: Average monthly rent reached around $3,495, following a 4.1% increase year-over-year.
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New York City: Already home to some of the world’s priciest apartments, NYC rents climbed further, maintaining its reputation as one of the hardest places to find affordable housing.
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San Francisco: Despite high vacancies during the pandemic, San Francisco rents continue to rebound, keeping the city in the top tier for housing costs.
This means renters in these metros face a double challenge: not only are rents high, but they’re also continuing to rise.
Cities Where Rent Decreased
Interestingly, the report wasn’t all bad news. A handful of cities saw declines in average rent.
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Austin, Texas, long known as one of the country’s hottest housing markets, experienced a small but notable decrease. After years of skyrocketing costs, Austin may be hitting a point of market correction.
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Aurora, Colorado also saw a modest decline, showing that not every metro is caught in an upward spiral.
For renters, these decreases are a reminder that local dynamics matter and that affordability can shift depending on new construction, migration trends, and job growth.
Why Are Rents Rising So Quickly?
Several factors help explain the rapid increases in these cities:
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Supply & Demand Imbalance
Many metros simply don’t have enough rental housing to keep up with population growth. When more people compete for fewer units, rents rise. -
Inflationary Pressures
Landlords are dealing with higher costs across the board: insurance premiums, property taxes, utility bills, and maintenance expenses. These increases are often passed on to tenants in the form of higher rents. -
Post-Pandemic Migration Trends
Cities that were once overlooked are now attractive to remote workers, young families, or those priced out of major markets. As people relocate, demand rises in these “second-tier” cities, pushing rents up faster than expected. -
Economic Recovery & Job Markets
A stronger job market and higher wages (at least in some industries) can embolden landlords to raise rents, knowing there’s a pool of renters who can still afford them.
What Renters Should Do
If you’re a renter in one of these fast-rising markets, here are a few strategies to consider:
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Negotiate Lease Renewals: Even in competitive markets, some landlords may be willing to negotiate smaller increases to retain good tenants.
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Consider Longer Leases: Locking in today’s rent for 18–24 months could save money if you expect further increases.
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Explore Surrounding Areas: Commuter towns or neighborhoods slightly farther from city centers may still offer more reasonable prices.
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Budget Proactively: As rents rise faster than wages in many markets, renters should track housing costs carefully to avoid financial strain.
Policy Implications
These trends don’t just affect individuals they carry broader social and economic consequences. Rapid rent increases can:
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Drive residents out of cities, leading to labor shortages.
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Increase homelessness and housing insecurity.
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Put pressure on local governments to consider rent stabilization or housing development incentives.
In many ways, the current rent landscape reflects a long-term structural issue in U.S. housing: demand is outpacing supply. Without significant investment in new housing stock, renters will continue to face tough choices.
Final Thoughts
The latest analysis shows that rent hikes are no longer just a “big city” problem. From Newark to Cleveland to Columbia, even traditionally affordable cities are becoming less accessible to average renters. While a few metros show signs of relief, the majority of U.S. cities are moving in the opposite direction.
For renters, the takeaway is clear: stay informed, plan ahead, and be ready to adapt. For policymakers, the challenge is even bigger finding ways to ensure that housing remains both available and affordable in a changing market.
Source: “Where rent increased most,” Idaho Statesman Read the full article here