Spring 2025 edition
Buckle Up, Wallet Warriors!
Ladies and gentlemen, welcome to the most thrilling economic ride since the invention of avocado toast and side hustles! Imagine an economic thriller where cities compete in the most unexpected marathon of all time: the Great Rent Growth Olympics. We’re about to dive into a data-driven drama that would make Wall Street traders look like they’re playing Monopoly with Monopoly money.
Picture this: metropolitan areas duking it out for the title of “Most Likely to Make Your Bank Account Cry,” where rent increases are more unpredictable than a cat’s mood and more dramatic than a reality TV show finale. We’ve got small towns punching above their weight, massive metros playing economic Jenga, and income levels doing a weird dance that would make economists scratch their heads.
Grab your financial seatbelt, bring a sense of humor, and maybe a strong drink – we’re about to take a wild ride through the most fascinating rental market analysis that’ll make you laugh, cry, and rethink how you think about housing.
How rents, income have changed in large MSAs over the past 5 years
| MSA | State | 2024 Population | 5-Year Rent Change | 1-Year Rent Change | 5-Year Median Income Change |
|---|---|---|---|---|---|
| New York-Newark-Jersey City | NY/NJ/PA | 19,261,570 | 22.1% | 2.6% | 17.5% |
| Los Angeles-Long Beach-Anaheim | CA | 13,200,000 | 14.7% | 0.2% | 15.6% |
| Chicago-Naperville-Elgin | IL/IN/WI | 9,618,502 | 24.1% | 5.1% | 14.9% |
| Washington-Arlington-Alexandria | DC/VA/MD/WV | 6,280,487 | 17.8% | 3% | 17.8% |
| Atlanta-Sandy Springs-Alpharetta | GA | 6,144,050 | 17.5% | 0% | 16.7% |
| Philadelphia-Camden-Wilmington | PA/NJ/DE/MD | 6,096,120 | 15.4% | 0.9% | 16.2% |
| Miami-Fort Lauderdale-Pompano Beach | FL | 6,091,747 | 33.8% | 1.4% | 16.5% |
| Boston-Cambridge-Newton | MA/NH | 4,941,632 | 22% | 3.2% | 18.3% |
| Riverside-San Bernardino-Ontario | CA | 4,649,316 | 32% | 1.8% | 16.9% |
| Detroit-Warren-Dearborn | MI | 4,320,452 | 17.7% | 2.6% | 14.5% |
| San Diego-Chula Vista-Carlsbad | CA | 3,338,330 | 25.7% | 0.1% | 16.8% |
| Tampa-St. Petersburg-Clearwater | FL | 3,175,275 | 36.8% | 2.4% | 18.7% |
| Charlotte-Concord-Gastonia | NC/SC | 2,660,329 | 23.5% | 1% | 17.2% |
| Portland-Vancouver-Hillsboro | OR/WA | 2,492,412 | 14% | 1.4% | 19.1% |
| Sacramento-Roseville-Folsom | CA | 2,411,891 | 22.4% | 2.1% | 17.3% |
| Kansas City | MO/KS | 2,171,974 | 20.2% | 2.4% | 16.4% |
| Indianapolis-Carmel-Anderson | IN | 2,111,813 | 23.4% | 3.4% | 15.5% |
| Columbus | OH | 905,748 | 19.9% | 2.7% | 15.7% |
| Visalia | CA | 139,000 | 46.5% | 2.9% | 15.2% |
Key Insights
Midwest and Southeast stand out, secondary cities saw stronger rent growth
Highlights from rent changes
- Highest 5-Year Rent Growth:
- Visalia, CA (46.5%)
- Tampa-St. Petersburg-Clearwater, FL (36.8%)
- Miami-Fort Lauderdale-Pompano Beach, FL (33.8%)
Median Income Growth Standouts
- Highest 5-Year Income Growth:
- Portland-Vancouver-Hillsboro (19.1%)
- Tampa-St. Petersburg-Clearwater (18.7%)
- Boston-Cambridge-Newton (18.3%)
Correlation and Observations
- Most markets show median income growth between 14.5% and 19.1%
- There isn’t any direct correlation between income changes and rent, but a function of supply, regulation on zoning and migration patterns post COVID-19
Notable Market Characteristics
- New York remains resilient on income growth and rent growth as well
- 22.1% rent growth
- 17.5% median income growth
- Visalia
- Highest rent growth (46.5%)
- Relatively modest income growth (15.2%)
PS: In case you were wondering where Visalia, CA is (like us) see below
Conclusion: The Crystal Ball of Chaos
So, what have we learned from this economic rollercoaster? If real estate was a dating app, these metropolitan areas would be swiping right on growth and left on stagnation. Your takeaway? Never trust a rental market to be predictable – it’s more temperamental than a toddler on a sugar rush.
Remember, these numbers aren’t just statistics – they’re the financial equivalent of a stand-up comedy routine. One moment you’re laughing, the next you’re checking your bank balance and considering a career as a professional house sitter.
Pro tip: If you’re planning to move, maybe consult this chart instead of your horoscope. At least these numbers have some basis in reality – unlike Mercury being in retrograde or your aunt’s investment advice.
Final words of wisdom: In the grand casino of real estate, the house always wins. But hey, at least now you can bore your friends with incredibly specific rent growth trivia at your next dinner party. You’re welcome.
Disclaimer: This analysis is brought to you by numbers, a dash of sarcasm, and the collective sighs of renters everywhere!
This analysis provides historical insights based on estimated data and should not be interpreted as future market prediction or investment advice. Data sourced from estimated ACS and Census Bureau information.
