For the first time in U.S. history, the median rent cost nationwide surpassed $2,000 per month in May, according to a report done by Redfin.

The news: CNN reports that rent is climbing fastest in Sun Belt cities.

  • In Austin, Seattle and Cincinnati, rent has grown by over 30% in the last year, per NPR. In Austin, Texas, asking rent surged by 48%, the largest increase in a metro area that Redfin has on record.
  • Even in cities that were formerly known as “affordable,” average rent prices are over $2,000. For example, Nashville’s median rent cost is at $2,140, which is 32% more expensive than last year, NPR stated.
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Why is rent so expensive? Daryl Fairweather, chief economist for Redfin, told NPR demand is what is driving rent costs.

  • After the last housing crash, Fairweather says that not enough homes were built for a decade. “That lack of supply is the biggest force pushing up home prices,” and making it harder for people to afford to buy and rent homes and apartments, according to NPR.
  • CNN states that demand, mostly from young renters, is another factor driving rent prices. Rising home prices are influencing more young people to rent houses and apartments.

Where is rent the most expensive? According to Redfin, these are the places that have the highest median asking prices.

  1. Nassau County, New York: $4,008.
  2. New Brunswick, New Jersey: $4,008.
  3. New York, New York: $4,008.
  4. Newark, New Jersey: $4,008.
  5. Boston, Massachusetts: $3,970.
  6. Oakland, California: $3,752.
  7. San Francisco, California: $3,752.
  8. San Jose, California: $3,621.
  9. San Diego, California: $3,432.
  10. Anaheim, California: $3,400.
  11. Los Angeles, California: $3,400.
  12. Fort Lauderdale, Florida: $3,157.
  13. Miami, Florida: $3,157.
  14. West Palm Beach, Florida: $3,157.
  15. Seattle, Washington: $3,097.
  16. Sacramento, California: $2,764.
  17. Austin, Texas: $2,707.
  18. Denver, Colorado: $2,681.
  19. Riverside, California: $2,681.
  20. Washington, D.C.: $2,681.