Rents are skyrocketing in these 5 subways. What you need to know before moving

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As rising interest rates and rising real estate values ​​prevent more families from buying a home, the demand for rental properties has skyrocketed, with the highest rents in the sunniest states.

Rents for single-family homes rose in the first half of 2022, reaching a national average of $2,495 per month — a 13.4% increase compared to the same period in 2021, according to a new report from national real estate agency HouseCanary.

While cities in warmer climes like California and Florida dominated the list with the highest median rents, Midwestern states like Ohio earned the top spots for the most affordable rent, the report found.

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The findings come as more Americans, including some six-figure earners, live paycheck to paycheck amid rising costs.

Annual inflation rose 9.1% in June, growing at the fastest pace since late 1981, according to the U.S. Department of Labor.

5 U.S. Subways With The Most Expensive Monthly Rentals

These U.S. metropolitan real estate markets had the highest average monthly rent for single-family homes in the first half of 2022:

  1. Los Angeles; Long Beach, California; Anaheim, California: $4,664
  2. San Diego; Carlsbad, California: $4,617
  3. Bridgeport, Connecticut; Stamford, Connecticut; Norwalk, Connecticut: $4,352
  4. San Jose, California; Sunnyvale, California; Santa Clara, California: $4,294
  5. Oxnard, California; Thousand Oaks, California; Ventura, California: $4,259

5 U.S. Subways with the Cheapest Monthly Rentals

These U.S. metropolitan real estate markets had the cheapest average monthly rent for single-family homes in the first half of 2022.

  1. Mobile, Alabama: $1,419
  2. Dayton, Ohio; Kettering, Ohio: $1,412
  3. Wichita, Kansas: $1,397
  4. Akron, Ohio: $1,361
  5. Canton, Ohio; Massillon, Ohio: $1,314

Remote working can hinder wage growth

The pandemic accelerated the trend to move away from expensive coastal cities for more affordable areas as more Americans transitioned to remote work.

And a record number of home buyers in the US are still looking for cheaper options from cities like San Francisco, Los Angeles and New York, according to a July report from Redfin. However, remote working may have hidden costs.

While many have enjoyed the benefits of remote work, research shows it can stunt wage growth over time, according to a working paper published by the National Bureau of Economic Research.

There may be other ‘hidden’ moving costs

While moving to a cheaper area can lower your rent or mortgage, other unexpected costs can hurt your budget, experts say.

“Losing your network or your village is a big hidden cost,” said financial planner Bill Parrott, president and CEO of Parrott Wealth Management in Austin, Texas.

Losing your network or your village is a big hidden cost.

Bill Parrott

President and CEO of Parrott Wealth Management

Without access to friends and family, costs such as childcare, pet sitting and more can add up quickly, he said.

And traveling from a smaller city can be more expensive, depending on your airport or transportation options, said Caleb Pepperday, a Pittsburgh-based CFP and wealth advisor at JFS Wealth Advisors.

“It’s best to research some of these costs before moving to a new city to help make your decision,” he said.

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