Cleveland offers cheapest Midwest rentals amid national decline

If you’re considering renting an apartment in the Midwest, Cleveland might be your most economical choice. The city experienced the largest rent decline in the region in December 2024. According to Realtor.com, Ohio’s second-largest city had the lowest average rent among all 12 Midwestern states, with a typical two-room apartment costing $1,184 per month. This figure represents a 3.4% decrease from the previous year.

In comparison, San Jose, California, remains the priciest rental market nationwide with median rents reaching $3,305 per month in December—nearly three times more expensive than Cleveland's rates and marking an increase of over 3% from last year.

Cleveland's rental costs are also significantly lower than the national median asking rent of $1,695 for December, which fell below $1,700 for the first time since April 2022—a drop of 1.1% compared to last year.

December marked the 17th consecutive month where rents declined year-over-year for apartments with up to two bedrooms across the largest U.S. metropolitan areas. “Though the rent declines over the past year and five months have been consistent,” stated Realtor.com Chief Economist Danielle Hale, “they haven’t amounted to major relief from the peak level reached in July 2022.” She added that “December’s figure is just 3.7% below that all-time high and still 16% above the mark from December 2019.”

The city's absorption rate—the percentage of newly constructed rental units leased within three months—has decreased as well, indicating a softening rental market in Cleveland.

Other Midwestern cities like Chicago and Milwaukee also saw reductions in their typical rents by 2.8% and 1.2%, respectively.

Meanwhile, Oklahoma City reported having America's lowest median rent at $1,015 last month despite a slight annual increase of 1.3%. In contrast, Memphis recorded a significant drop in its rental prices by 6.7%, followed by Austin at 5%, and Nashville at 4.4%.

Regions such as the West are experiencing declining absorption rates due to rapid construction increasing unit supply while conversely seeing high absorption rates in Northeast markets like New York City where rents continue rising annually according to Hale: “This trend corresponds with ongoing annual rent growth.”