HONOLULU (KHON2) — Something that goes hand and hand with inflation is rising rent costs and a new report shows urban Honolulu having the 2nd highest median rent estimate.
Stessa, an investment tracking real estate website, compared rent prices throughout the United States comparing which states saw a steep increase and which states did not.
They attribute some states seeing a high increase in renters due to the high-interest rates for some houses pushing out potential buyers and forcing them to become renters.
Stessa reports inflation continues to be a major factor in households opting to rent to save a few bucks. Recently the U.S. Bureau of Labor Statistics showed that the Consumer Price Index rose by 7.9% from February 2021 to February 2022.
Stessa suggests this increase represents a 40-year high and a tenth straight month with year-over-year inflation higher than 5%.
Hawaii is known to have an ultra-competitive residential real-estate market that has now pushed over the potential home and condo renters.
Their study shows the urban Honolulu metro area has a median rent estimate of $2,708, compared to the national median of $1,435. Out of all midsize metros, Urban Honolulu has the 2nd highest median rent estimate.
Hawaii isn’t the only state dealing with the high costs of rent. Their study shows many states and localities already have unaffordable housing, especially coastal states with high costs like California, Massachusetts, and New York.
In some expensive locations, median rents can approach or top $2,000 a month, and the costs of a studio apartment can cost more than a typical 3- or 4-bedroom house in less expensive parts of the country.
They found at the low end, Arkansas is the most affordable state for renters at $881 per month—approximately one-third of the median rent cost in the most expensive state, Hawaii ($2,537).
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For more information on this report or to see where other states landed, head to their website.