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12 high-rent markets that could push clients to buy a home

A slowdown in home construction and tight inventory is putting upward pressure not just on prices, but on rental costs. As a result, financial advisors are tasked with helping clients sift through a limited selection of potential properties and avoid being priced out of the market entirely.

The national average rent continued its ascent in August, rising 3.3% in one month to $1,472, according to apartment search platform Rentcafe. While rent did rise at a slower pace than it did during the same period a year ago, monthly rent in some cities sits well above the country norm.

Assuming the nation's median monthly mortgage payment is still within range of the $1,030 average recorded in 2018 by the Census Bureau, consumers in high-rent housing markets may be particularly swayed to buy a house. Even if trends with local purchase values align as also being pricier, the investment aspect of owning property may incentivize certain consumers to do so.

Although the average rent in some areas sits well under the thousand-dollar mark, in others, figures above $4,000 are standard. From Manhattan to Denver, here's a look at 12 housing markets with the highest monthly rent.

Data for the rankings is derived from a report by Rentcafe and its sister company, Yardi Matrix, which analyzes monthly rent prices across the nation's largest cities.

The Rocky Mountains form the backdrop to the city's skyline in Denver, Colorado, U.S.
Denver, Colorado
Average monthly rent: $1,670
Amount over national average: $198
Month-over-month change in rent: -0.3%
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Chicago, Illinois
Average monthly rent: $2,007
Amount over national average: $535
Month-over-month change in rent: 0.3%
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Seattle, Washington
Average monthly rent: $2,130
Amount over national average: $658
Month-over-month change in rent: -0.5%
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Washington, D.C.
Average monthly rent: $2,227
Amount over national average: $755
Month-over-month change in rent: 0%
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San Diego, California
Average monthly rent: $2,236
Amount over national average: $764
Month-over-month change in rent: 0.7%
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Los Angeles, California
Average monthly rent: $2,525
Amount over national average: $1,053
Month-over-month change in rent: 0.2%
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Queens, New York
Average monthly rent: $2,586
Amount over national average: $1,114
Month-over-month change in rent: 0.6%
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San Jose, California
Average monthly rent: $2,790
Amount over national average: $1,318
Month-over-month change in rent: -0.1%
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Brooklyn, New York
Average monthly rent: $2,940
Amount over national average: $1,468
Month-over-month change in rent: 0.5%
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Boston, Massachusetts
Average monthly rent: $3,545
Amount over national average: $2,073
Month-over-month change in rent: 0.3%
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San Francisco, California
Average monthly rent: $3,706
Amount over national average: $2,234
Month-over-month change in rent: 0%
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Manhattan, New York
Average monthly rent: $4,272
Amount over national average: $2,800
Month-over-month change in rent: 0.7%
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