Top 8 cities people are moving to for cheaper than average rent

• Rents have skyrocketed since the pandemic and show no signs of slowing down.
• Now, consumers are either moving to different states or downgrading their apartments to save money.
• Bank of America shares the top eight cities people are moving to for cheaper rent.

It’s one of your biggest monthly expenses, and it only grows every year.

A recent Redfin report found that the average rent in the US is now $1,634 – up 20% from pre-pandemic levels. Rents have risen significantly over the past year as well. According to consumer price index data, you pay almost 5% more to rent the same apartment compared to a year ago.

Rising rents are causing people to move to cheaper areas, according to Bank of America. In a client note dated October 30, the bank found that based on its deposit data, the average consumer rent payment rose 3.7% year-on-year in September 2024. This discrepancy between the Bank of America and the official rate of rent inflation indicate that people are moving to find more affordable rent rather than staying put, the bank said.

Consumers are either moving away from high cost of living areas or downgrading to the same city to save money. Renters make up about 34% of all US households and are disproportionately younger and lower-income consumers, meaning they are more price-sensitive.

This isn’t a new trend—the pandemic has caused many people to move to places with cheaper rent as remote work has become normalized. Now, persistent rent increases are pushing consumers to keep moving in search of lower housing costs.

Bank of America analyzed the number of address changes in its customer base to track migration trends. The bank found that areas in the west and north-east were experiencing a particularly large exodus of consumers, with rent inflation in the north-east rising the fastest. New York, Boston, San Francisco, San Jose and Los Angeles are seeing the largest net inflows of residents as many consumers are priced out.

By contrast, people who moved to southern states saw only a 2 percent increase in new rents, below the rate of inflation. The Midwest has also been a popular destination for consumers moving across state lines because rents there are relatively low compared to the rest of the country.

Bank of America identified eight cities where people are moving for cheaper rent below the national average, indicated by a positive net population flow in Q3 2024. Also included is median asking rent for September 2024, provided by Redfin.