These 2 Landlocked States Have Surprisingly High Rent Costs

The cost of living in the United States has continued to rise following the COVID-19 pandemic, with a larger percentage of Americans' paychecks going toward rent. When it comes to renting and owning, both can help you build wealth, according to personal finance experts, with low rent costs as a key factor. Some of the nation's largest municipalities and most expensive states are located along the coasts, but rent has begun to rise even in certain landlocked states. In fact, renting in both Colorado and Nevada has become a financial liability.

In a map published by Visual Capitalist and based on data pulled from the Census Bureau's (USCB) American Community Survey 2024 1-Year Estimates, both states have emerged as some of the priciest locations to rent in; not only in the West but in the nation as a whole. The map shows Nevada with a median monthly rental cost of $1,709, while median rent in its eastern neighbor comes in at $1,822. Both are considerably higher than the national median rate of $1,487, as reported by the USCB (via Visual Capitalist). What's even more surprising, is that both states have considerably higher rents than some of their coastal counterparts, including Oregon and Maine. Behind this increase in rental costs is the steady rise of population, income, and housing prices. 

Both states have seen a consistent rise in population in recent years, particularly in urban centers like Reno and Denver. This has led to a higher demand for rental properties, driving prices up. The population growth partly stems from a consistent influx of business to the states, which are attractive to entrepreneurs for various reasons. Nevada is one of the states without an income tax, and Reno is experiencing a significant business boom, with growing brands like Patagonia moving in from California and forcing employees to do the same. Meanwhile, Denver is emerging as a major business hub, with companies like Salesforce, Amazon, and Google opening offices in the city. 

As people flock to the landlocked states, demand for housing has grown, with higher incomes and fewer available properties. While this growing business interest in the states has led to more residents, it has also inflated the median income. Per the Federal Reserve Bank of St. Louis, the median household income in Nevada went up by 24% between 2020 and 2024, while Colorado's figures soared by 21%. A rapid rise in incomes typically leads to the construction of a large number of higher-priced rental units, while low- and moderate-cost rental developments take a backseat. 

Meanwhile, the available number or rentals doesn't seem to meet the demand, even as rental vacancy rates have climbed in Nevada, according to the St. Louis Fed. In Colorado, where the 'upper-class' salary figure has been pushed to new heights, the vacancy rate has been sluggish over the past decade. As housing prices, population, and income continue to rise, renters are inevitably feeling the squeeze, as their monthly payments likewise continue on an upward trajectory.