Rents climbed at their fastest pace in a year in February, capping off a year of almost monthly increases. The price of rent rose an average of 2.25% last month compared with a year earlier and is now $1,981, according to a new analysis from Rent.com.

What You Need To Know

  • Rents climbed at their fastest pace in a year in February

  • The price of rent rose an average of 2.25% last month

  • Median monthly rent in the U.S. is $1,981

  • The Northeast saw the largest year-over-year-rent gains, while rents in the Southwest and Mountain West fell slightly

Rents have gained about $17 per month over the past year as home prices increased and interest rates remained elevated. The Rent.com analysis expects rents will remain high until the Federal Reserve begins lowering interest rates, when more renters are expected to become homebuyers and reduce demand for rentals.

Rents in February were 21% more than they were in March 2019 but were lower than their pandemic peak of $2,053 in the summer of 2022.

The Northeast saw the largest year-over-year rent gains in February, increasing 5.3% from $2,357 per month to $2,481. The Northeast is the most expensive region for renters nationally. Rents increased the most in New York (+12.7%), followed by New Hampshire (+8.43%).

The Midwest also saw strong gains, increasing 4.9% to $1,441 per month. Midwestern rents increased the most in Kansas (+7.13%), followed by Indiana (+7.13%). Still, the Midwest overall offers the most affordable rent in the country. It’s $1,440 less expensive than a comparable rental in the Northeast and $907 less expensive than the West.

Rents in the Southwest and Mountain West fell slightly. They were down 0.01% to a median of $2,349. Florida led the southern states with the largest declines in rent. They were down 6.57% compared with a year earlier, followed by Tennessee (-4.65%).

Oregon saw the largest rent declines of the Western states. Rents fell 5.48% over the past year, followed by Nevada (-4.245) and Idaho (-3.79%).