Home prices in America rose about 20% nationwide last year, compared to 2020. In some cities, the pace was double that. The increase was driven by low mortgage rates and a desire of people to leave large cities with expensive home prices to others where the median price of a home is lower. The migration also has been made possible by the fact that millions of Americans now work from home because of the COVID-19 pandemic.
Rents rose rapidly last year too. The median asking price for apartments with zero to two bedrooms averaged an increase of 10.1%. The December figure reported by Realtor.com was much greater at 19.3% in the same month of 2020. This pushed the monthly median rental figure across America’s 50 largest cities to $1,781.
The rental figure varied based on the size of the apartment. For December, the report showed: “Studio: $1,462, up 18.6% ($230) year-over-year; 1-bed: $1,651, up 19.3% ($267); 2-bed: $2,003, up 19.1% ($320).”
In three markets, rents rose over 30% in December from the same month in 2020. These were Miami at 49.8% to $2,850, Tampa at 35.0% to $2,038 and Orlando at 34.1% to $1,807.
The study also showed the median rent by city for December and covered all 50 cities. The lowest figure was Oklahoma City at $949, which was up 15.7%. No other city had a monthly rent figure of less than $1,000.
These are the 20 cities with the lowest rents:
| City | Rent | Change |
|---|---|---|
| Oklahoma City, Okla. | $949 | 15.7% |
| Louisville, Ky. | $1,181 | 16.2% |
| Kansas City, Mo. | $1,225 | 11.2% |
| Indianapolis, Ind. | $1,226 | 12.0% |
| Columbus, Ohio | $1,247 | 14.1% |
| Birmingham, Ala. | $1,249 | 22.2% |
| St. Louis, Mo. | $1,262 | 9.7% |
| San Antonio, Texas | $1,306 | 19.4% |
| Memphis, Tenn. | $1,324 | 29.4% |
| Rochester, N.Y. | $1,333 | 11.1% |
| Cleveland, Ohio | $1,352 | 16.9% |
| Houston, Texas | $1,389 | 15.9% |
| Cincinnati, Ohio | $1,400 | 15.9% |
| Detroit, Mich. | $1,400 | 12.1% |
| Richmond, Va. | $1,419 | 18.2% |
| Buffalo, N.Y. | $1,435 | 20.1% |
| Pittsburgh, Pa. | $1,500 | 18.5% |
| Virginia Beach, Va. | $1,503 | 18.1% |
| Milwaukee, Wis. | $1,527 | 11.0% |
| Raleigh, N.C. | $1,532 | 23.6% |
Click here to see the cities where buying a home is most expensive.
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