- Rents have soared in some major cities as return-to-office mandates go into effect.
- However, buying isn’t an option for many young people since mortgage rates are high.
- Here are 11 cities with falling rent and plenty of entertainment options.
Scoring an enticing deal on an apartment doesn’t have to mean settling for a boring city.
Many of the most popular spots among young people, from the New York City metro area to the Bay Area, are already astonishingly expensive — and prices only seem to be going higher.
New York, San Francisco, Jersey City, and San Jose were all among the five most expensive cities for renters in January, real-estate site Zumper recently found. Rents surged 5.9% from early 2024 in New York and between 7.1% and 11% in the Bay, though Jersey City’s rent fell.
There are several reasons millennials and Gen Zers have flocked back to expensive cities since the pandemic. Some crave social connections, while others are increasingly required to by their employers after years of remote work. This latter reason may be the best explanation for why rents are surging in these major cities, which happen to be home to top tech companies.
“With the growing popularity of hybrid work among employers, as well as many large tech companies enforcing return-to-office policies of up to five days a week, many tech workers who may have previously left the Bay Area have likely made their way back,” Zumper researcher Crystal Chen wrote in a late-January report.
Although the winter rental market is often quieter, as shown by slight rent declines from late last year, Zumper found that nationwide rents rose 2.5% and 3.2% for one- and two-bedroom units, respectively. Rents rose in 63 of the 100 largest US metropolitan areas that Zumper tracks, and a startlingly high 39 of those cities saw rent take off by more than 4%.
“The US has a ton of rental demand,” Chen said in an interview, noting that high mortgage rates have sidelined many homebuyers. “Although we did have that 50-year-high of new supply last year, the demand will probably catch up to the amount of new supply that hit the market.”
11 appealing cities for young workers
However, living in a large city with a bustling social scene won’t necessarily break the bank.
While some may associate cheaper rent with sleepy towns that aren’t in high demand, there are a number of cities well-suited for young professionals where rent is on the decline.
Business Insider analyzed Zumper’s rental data and found 11 cities where one-bedroom rents have fallen 5% or more from early 2024. Eight are cheaper than the US median price of $1,534.
Each has a median age below the US-wide level of 38.5 years old, based on the latest US census data, and got an “A+” or “A” score in reviews site Niche’s “good for young professionals” ranking. These cities have a slew of bars, restaurants, and other social hubs, and 10 of the 11 are home to at least one major professional sports team.
Below are each of those cities top cities for young people, along with the median rent and year-over-year rent growth for one- and two-bedroom apartments, as well as the median age and ranking in the “good for young professionals” category from Niche.
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