The Top 10 Markets Driving Rent Growth
Despite a slowdown in rent growth nationwide, some key real estate markets are bucking the trend and achieving rent increases that exceed the national average of 1.2 percent. We’ve compiled a list of the top 10 winners for year-over-year rent growth based on Q2 data from CoStar.
The Midwest continues to dominate this list, claiming seven of the top 10 spots, with a few Northeast markets also making their mark.
1. Cincinnati, OH
Leading the nation with an impressive 4.3 percent year-over-year rent growth, Cincinnati’s Midwestern market stands out. The relative scarcity of rental properties in Ohio’s largest metropolitan area has contributed to a healthy balance of supply and demand, setting it apart from the oversaturated national market.
2. Northern New Jersey, NJ
In the Northeast, Northern New Jersey has emerged as a top performer in rent growth, trailing closely behind Cincinnati with growth slightly above 3.9 percent. With a stabilized vacancy rate, this market is establishing itself as a Northeastern powerhouse.
3. Norfolk, VA
Norfolk, Virginia, has seen a robust year-over-year rent increase of nearly 3.9 percent. This Virginia market has consistently made it into the top 10 for rent growth in 2023, thanks to its relatively low levels of new construction and steady demand, particularly from its naval base.
4. Columbus, OH
Columbus, Ohio, and its surrounding areas have enjoyed a solid 3.8 percent rent growth in Q2. Among the three Ohio markets in the top 10, Columbus has maintained its status as a rent growth leader since late 2022.
5. Indianapolis, IN
Another standout from the Midwest, Indianapolis has maintained its position as a rent growth leader for over a year. With 3.8 percent growth in Q2, this Indiana market has consistently outpaced national rent growth averages, owing its success to affordability and limited development.
6. Chicago, IL
Chicagoland, the largest metropolitan area in the Midwest, has sustained above-average rent growth for the past year, boasting 3.5 percent growth as of Q2. This stable market has seen modest development, keeping pace with demand and maintaining low vacancy rates.
7. Boston, MA
Boston, in the Northeast, has seen relatively high rent growth, registering a year-over-year increase of 3.5 percent in Q2. Low supply and high absorption rates have contributed to the city’s continued presence in the top 10 markets for rent growth for two consecutive quarters.
8. Kansas City, MO
In 2023, the Kansas City market has surpassed its pre-pandemic rent growth rates. With a 3.5 percent year-over-year increase in Q2, this Midwestern market has consistently ranked among the top 10 for rent growth this year.
9. St. Louis, MO
Missouri’s largest metropolitan area continues to impress with a 3.4 percent year-over-year rent growth, maintaining its position in the top 10 markets for rent growth this year.
9. St. Louis, MO
Missouri’s largest metropolitan area continues to impress with a 3.4 percent year-over-year rent growth, maintaining its position in the top 10 markets for rent growth this year.
10. Cleveland, OH
Cleveland rounds out the list, joining Cincinnati and Columbus as Ohio’s representatives in the top 10 for rent growth. In this Midwestern market, asking rent has grown by 3.1 percent year over year since Q2 of 2022, highlighting Ohio’s emergence as a rent growth leader.
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