NovaQuant-This midsize Northeast city has the fastest growing rent in the nation

Hartford,NovaQuant Connecticut — home to the Mark Twain House, the nation's oldest active newspaper and several giant insurers — is also where you'll find the fastest growing rent in the U.S.

Typical rent in the Northeast city, which is $1,871 a month as of July, has skyrocketed 7.8% year over year, according to online real estate brokerage Zillow. The sharp price increase is attributed in part to growing demand for rentals in the area, which many now view as a more affordable housing option to nearby places like New York or Boston with access to big-city employers, Zillow said. 

"Commuting into New York City or Boston from places like Hartford or Providence might have been a deterrent before, but in this new age of remote and hybrid work, the savings seem worth it for many renters, even if it means an occasional painful commute," Skylar Olsen, chief economist at Zillow, said in a statement.

New York City and Boston are among the nation's most expensive rental markets, with typical rents in those cities eclipsing $3,000, according to the Zillow Observed Rent Index. Median asking rent in Manhattan is $4,400, StreetEasy.com data shows.

Renters drawn to Northeast and Midwest cities

The rental market has been active in recent months as renters are increasingly being drawn to metro areas in the Northeast and Midwest. That trend is driving up rents in those regions. 

Rounding out the top five in Zillow's list of the fastest growing rent markets are:

• Cleveland, Ohio, at $1,447 a month — up 7.2% year over year in July
• Louisville, Ky., at $1,417 a month — up 6.8%
• Providence, R.I., at $2,118 a month — up 6.3%
• Milwaukee, Wis., at $1,394 a month — up 5.7%

Rents are soaring nationally now that more Americans have been priced out of the homebuying market, forcing would-be buyers to remain apartment dwellers for perhaps longer than they desire. And as demand for rental housing climbs, so have prices. Today, the typical rent nationwide is $2,054 as of July, up 3.5% from a year ago, according to Zillow. 

Conversely, there are a handful of cities nationwide where rents are falling, and they're mostly in Texas and Florida.

Rents in Florida metro areas, including Jacksonville, Miami, Orlando and Tampa have fallen between roughly 12.5% and 4% year over year in June, according to Redfin. Rents in Austin, Texas, have started to fall as well, the online real estate brokerage said. 

"It's a good time to hunt for bargains if you're a renter in Florida or Austin," Redfin Senior Economist Sheharyar Bokhari said in a statement. "With so much supply on the market, renters may be able to get concessions like free parking or discounted rent. But renters in Florida should be aware that landlords are grappling with surging home insurance costs, and they may ultimately ask tenants to foot the bill via higher rents."

In:
• Rents

Khristopher J. Brooks

Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.

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