Which States Pay the Highest Rent in the U.S?

With average rent prices exceeding $2,000, renters in New York, Washington and California pay the most for rent. Renting can often be a solution when you’re not quite sure where you want to settle down or your only option for finding a place to live, as purchasing a home can be unaffordable or impractical in some circumstances. However, not all states are equal in their costs, with some states having an average difference of thousands of dollars compared to those with the highest rent in the U.S.

Keep reading to learn more about the national average cost of rent and the factors that contribute to those costs.

On This Page

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  What Is the Average Rent Price in the U.S?

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  What States Are the Most Expensive for Renters?

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  In What State Do Most People Rent?

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  Why Do Some States Pay More for Rent Than Others?

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  FAQs

What Is the Average Rent Price in the U.S?

In 2024, people across the U.S. pay $1,533 on average for rent (includes utility and fuel costs), which is a 0.7% increase over the previous year.^[1] Keep in mind that average rent prices can fluctuate based on the size of the rental, with smaller apartments generally costing less. However, studio apartments can sometimes cost more than a one-bedroom apartment due to their frequent proximity to major metropolitan areas and job centers in cities, which can increase their price despite having a smaller square footage than the average one-bedroom unit.^[2]

Here’s a breakdown of the cost of typical styles and sizes of apartments in the U.S:^[1]

What States Are the Most Expensive for Renters?

Here are the top 10 states, including Washington, D.C., with the highest average rent per month:^[1]

1. New York: $2,560
2. Massachusetts: $2,479
3. District of Columbia: $2,263
4. California: $2,116
5. New Jersey: $1,977
6. Washington: $1,782
7. Hawaii: $1,777
8. Connecticut: $1,762
9. Vermont: $1,760
10. New Hampshire: $1,744

Keep in mind that while some of these states offer some of the highest average rents in the country, that may not include all areas of the state. Areas closer to major cities often feature rent costs higher than the national median price due to the higher density of people and greater demand for housing. For example, Bainbridge, a small town in New York, has an average monthly rent of $283, making it one of the cheapest areas to rent in the country, while the average monthly rent in New York, NY is $3,801, making it one of the most expensive despite being in the same state.^[1]

What States Are the Least Expensive for Renters?

Here are the top 10 least expensive states to rent in per month:^[1]

1. West Virginia: $859
2. Oklahoma: $861
3. Arkansas: $886
4. North Dakota: $895
5. Iowa: $927
6. Mississippi: $943
7. South Dakota: $949
8. Kansas: $1,011
9. Louisiana: $1,016
10. Ohio: $1,017

In What State Do Most People Rent?

New York is the state most populated by renters, with nearly 45.9% of its residents renting their household. While technically not a state, those living in Washington D.C. are the most likely to rent, as this district hosts the highest rental percentage in the country, at 59%.^[3] California follows closely behind New York with 44%.

Why Do Some States Pay More for Rent Than Others?

Several factors come into play when it comes to the cost of rent in certain states, including supply and demand, how much people make and the overall housing market.

Supply and Demand

One of the primary drivers of rent costs in the U.S. is supply and demand. If there is a surplus in rental units but the demand is low, then rent prices generally go down. However, if there are many renters and not enough rental units, then rent prices generally go up. This is because there is more competition between renters for ideal units and as a result, landlords have more flexibility in increasing their prices.

However, factors such as the average income and the availability of homeownership can also inflate rental prices.

Higher Incomes

Because rent costs are typically determined based on a supply-and-demand model, the more money a renter has available to spend on rent, the higher the rates that landlords can charge. The areas of the country with the most expensive rent prices tend to be in the Northeast and the West Coast, as these areas often feature major cities that host industries with the highest incomes, such as tech, entertainment, banking and ports for international trade.

That said, in states or cities with lower rent costs on average (partly due to fewer competitively paying industries or lower entry-level wages), the cost of rent can consume a considerable percentage of a person’s income. For example, despite having one of the lowest average rent costs, the median renter in South Dakota spent nearly 25% of their income covering rental costs.^[4]

Lack of Affordable or Available Housing

The lack of available households around some significant population centers can lead to increased rental costs in those areas. Housing in major cities like Los Angeles or San Francisco, for instance, can be unaffordable and can increase the percentage of renters in those areas. As more higher-income earners continue to rent when they’d typically purchase a home, this can hurt lower-income earners in the area as it often results in rent increases beyond their means.^[5]

In some areas of the country, speculation on the increase of home values or the desire for a second home has led to a shrinking availability of houses, which can also affect the price for those looking to purchase their first home.