Detroit sees rise in single family homes rents, but remains among most affordable cities

If you've been searching for a single-family home to rent, you've likely noticed rental prices are on the rise. Despite these increases, cities in the Midwest — especially cities like Detroit — continue to offer some of the most affordable rates in the nation.

In Detroit, the average rent for a three-bedroom single-family home reached $1,353 in the third quarter of 2024 — up 7% from the previous year. Although this growth rate is double the national average, it remains below the regional average of 9%.

Rentometer , a Massachusetts-based company that provides rental estimates and comparisons, reports in its National Single-Family Rentals Report that while single-family home rents have consistently increased, the pace has recently slowed. In the third quarter of 2024, rental prices for single-family homes rose 3% year-over-year, down from a 4.2% increase in the previous quarter.

The report highlights that elevated mortgage rates and rising home prices are key factors keeping prospective buyers in the rental market, fueling demand in both urban and suburban areas. In markets where home prices have risen sharply, rents have often followed suit, as potential homebuyers continue to turn to rentals.

Asha Johnson, who recently rented a three-bedroom home in Sterling Heights, shared her experience.

"I was surprised by the prices for homes in certain areas like Redford, Southfield and Ferndale. I think they were extremely overpriced. The apartments were even worse."

Regionally, the Midwest and Northeast saw the largest increase in single-family rental prices, both growing over 9% year-over-year. In comparison, the Southeast and Southwest experienced more modest growth, at 2.2% and 3%, respectively.

California leads the nation with the highest rental costs for single-family homes, with cities like San Francisco, Irvine, and Los Angeles averaging over $5,000 per month for a three-bedroom home. Outside of California, only Boston, Massachusetts, and Miami, Florida, made it into the top 10 most expensive cities for single-family rentals.

On the other end of the spectrum, Toledo, Ohio ($1,214), Wichita, Kansas ($1,339), and Detroit ($1,353) are among the most affordable large cities for single-family rentals.

While single-family rental prices continued to rise, the slowing rate of growth could suggest that demand pressures may be stabilizing, providing some potential relief for renters in the future.

Brendel Hightower writes about real estate and other topics for the Detroit Free Press. at . Support local journalism: Subscribe to the Detroit Free Press .