Midwest Rents Surge Amid Housing Shortage

In contrast to a nationwide trend of declining rents, the Midwest has experienced a spike in rental costs. This region has witnessed a robust economy and an influx of residents seeking affordability, exacerbating a housing shortage that is lagging behind other areas.

Major Midwestern cities including Cincinnati, St. Louis, and Kansas City, Missouri, have seen some of the country's fastest rent increases. According to CBRE, a lack of supply and the tendency of renters to delay homebuying due to high prices have kept rents elevated.

Despite falling rents in Chicago and Detroit, eight of the ten largest Midwestern markets experienced rent growth since the previous year. Nationally, rents have decreased by about $8 or half a percent during this period.

Cincinnati's Rent Shock

Cincinnati has witnessed a particularly sharp rise in rents. The median rent reached $1,365 in November, a 2.6% increase from the previous year. Maggie Shreve, a Cincinnati resident, has experienced a 20% rent increase on her two-bedroom, one-bathroom apartment. This increase has put a strain on her fixed income.

"Cincinnati was advertised as 20% below the cost of living in Chicago, but that hasn't been the case," Shreve said.

Neighborhood's Response

Some tenants in Cincinnati have been forced to relocate due to rising rents. Residents have formed a union and requested that future rent increases be capped at 3%.

Emily Damelio, who moved to Cincinnati a decade ago, has noticed the affordability gap despite her increased income.

"I realized that I would never be able to move out of a studio apartment," Damelio said.

Regional Affordability

Despite the recent increases, the Midwest remains more affordable than other regions. In St. Louis, Kansas City, Cleveland, Chicago, and Columbus, couples earning local minimum wage can afford to split minimum rent while working just over 40 hours per week.

While minimum wage hikes have improved affordability in some areas, Danielle Hale of Realtor.com emphasizes that affordability challenges persist for many households across the region.