Rent Is Dropping the Fastest in These 8 States

While many states are experiencing rising rents, some are seeing more affordable rates.

With the rising cost of living, finding affordable housing can be difficult. Although many countries are seeing an increase in rents, not all. If you have flexibility, you may be able to take advantage of cheaper rental prices by moving out of state. Housing is a big expense for most people, so cheaper rent can help you reduce your expenses so you can improve your personal finances. Find out which states are seeing lower rental prices.

Eight states with fast discounts

Rent.com’s January 2023 Rent Report examined year-over-year rent price changes through December 2022. Here are the states that saw the biggest price declines: the rental price according to his research:

1. Idaho: 5.4%
2. Nevada: 2.7%
3. Arizona: 2.5%
4. Oregon: 2.4%
5. Virginia: 1.2%
6. Maryland: 1.1%
7. Pennsylvania: 0.7%
8. Georgia: 0.6%

The same report outlined median rental prices for each state. Rent.com looked at available rental listings and various bedroom types to calculate a simple median. Here are the median rental prices for those eight states in December 2022 according to their research:

1. Virginia: $1,946
2. Maryland: $1,862
3. Oregon: $1,768
4. Georgia: $1,716
5. Pennsylvania: $1,646
6. Idaho: $1,642
7. Nevada: $1,586
8. Arizona: $1,541

All of the states above have median rental prices that are cheaper than the national median, which was $1,978 in December 2022.

Don’t forget to consider other expenses before leaving the state

Can you save money by moving to a state with lower rental prices? Maybe. But before signing a new lease in another state, you should consider how your finances will change by moving elsewhere. While housing costs may be more affordable, other expenses may change when you move.

Here are some financial considerations before planning your out-of-state move:

• State Income Tax: Although not all states have an income tax, most do. When you move, your state income tax liability may change. Be sure to calculate how this affects your salary.
• Local Income Tax: You may find that your local income tax liability is different in your new area. It’s a good idea to research this before you pack up and move.
• Vehicle registration and inspection fees: If you own a car, you’ll want to research possible registration changes and vehicle inspection fees.
• Shipping costs: If you don’t drive, you’ll want to consider the cost of transportation to your new home. If transportation is limited, see if you can find a rental property in a more walkable area.
• Sales tax: Sales tax is another fee that can vary by state and city. It’s a good idea to research the sales tax rate for the place you’re planning to move to so you don’t get caught off guard.
• Warranty: Don’t forget to research the cost of insurance in your new state, such as car insurance and rental insurance.

Moving to a new state can be a win for you

If you’re struggling to pay the rising rent in your current home, moving could be the best way to reduce your expenses while saving money. Consider your budget when looking at a home so you don’t overspend. It’s also a good idea to research other possible cost variations when moving out of state.