In the U.S. overall, rent prices increased by an average of 5.5% in the last year. But in some cities, they went up far more.
In the posh Hamptons enclave of Amagansett, New York, rent surged by 63% for the 12 months ending May 2023 — the highest increase among all 1,865 cities examined by financial technology company SmartAsset.
That’s followed by cities where renters experienced price increases of 20% or more. Many of these places are also hot real estate markets where rent increases have followed rising home prices over the past few years.
Here’s a look at the top 10 cities where rent has grown the most:
With average monthly rental costs of $43,370, Amagansett has the most expensive rent prices in the U.S., according to SmartAsset data. This largely reflects the exclusive nature of the small East Hampton town, where beachside mansions routinely sell for tens of millions of dollars.
It’s home to many celebrities, including Alec Baldwin and Sarah Jessica Parker. A home owned by Parker was recently listed as a summer-long rental for $95,000.
Second in the rankings is Oxford, a college town in Mississippi, where average rent prices have climbed by 37%. Oxford isn’t a celebrity hotspot like Amagansett, however; it has a relatively low average rent of $1,660, as of May 2023. Its recent surge in rent prices follows steadily rising home prices, which have increased by nearly a third in the last three years.
In third place is Orinda, California, a wealthy suburb near San Francisco, which already has one of the most expensive rental markets in the country.
The list also includes cities in Florida, which saw an influx of Americans when the pandemic spread in 2020. As a result, there are fewer homes available than there were in 2019, which has led to higher home prices in many Florida cities. In turn, rent prices have steadily increased during that time as well.
SmartAsset’s study compared data from May 2022 with data from May 2023 using the Zillow Observed Rent Index for all types of homes that included up to five rooms.
DON’T MISS: Want to be smarter and more successful with your money, work & life? Sign up for our new newsletter!
Get CNBC’s free Warren Buffett Guide to Investing, which distills the billionaire’s No. 1 best piece of advice for regular investors, do’s and don’ts, and three key investing principles into a clear and simple guidebook.
