SANTA CLARA, Calif.,
July 15, 2021 /PRNewswire/
-- The shortage of affordable housing inventory forced more
prospective homebuyers into the rental market in June, driving the
U.S. median rent price to a new high of $1,575, an 8.1% increase year-over-year,
according to the Realtor.com® Monthly Rental Report
released today. Additionally, rental prices in 44 of
the 50 largest metros broke new records led by Riverside, Memphis, Tampa and Phoenix, which posted gains above 20%
year-over-year.
"The surge we're seeing in rental prices is likely to exacerbate
the K-shaped, or uneven, nature of the pandemic recovery in the
U.S. Rents are rising at a faster pace than income, which is adding
to the challenges faced by lower-income Americans as they struggle
to recover from job losses and other hardships brought about by
COVID," said Realtor.com® Chief Economist Danielle Hale. "Looking forward, rents aren't
expected to slow unless we see a fundamental shift in the number of
homes for sale and for rent."
Hale added, June's 3.2% price growth over May was more than just
the usual seasonal trend of increasing summer rents. Rents
typically fluctuate by less than 1% on a monthly basis. In June,
rents in all but two of the 50 largest U.S. metros posted
month-over-month gains of 1.0% or higher. Miami topped the list at an increase of 7.7%
over May, a gain that would be exceptional over the course of
12-months, let alone one.
Rents surge to new highs in 44 of the 50 largest U.S.
metros
The spike in demand for housing is putting pressure
on markets already challenged by availability and affordability.
Similar to the shortage of homes for sale, the number of homes
available to rent is historically low, driving competition and
surging rental prices. In June, rents in 44 of the 50 largest U.S.
markets hit the highest levels seen in the past two years of
Realtor.com® data. Additionally, nearly half of these
metros posted month-over-month gains at or above the unusually high
national rate.
For the second straight month, Riverside, Calif., Memphis, Tenn., Tampa and Phoenix held the top spots by rent growth.
Rents in these markets grew at a faster pace in June than last
month, posting year-over-year gains of 20% or more in June.
Riverside saw the highest growth
in June, up 24.2% over last year and 4.6% from May (+19.2%) to a
median $2,112.
Strong demand for more space widens the rent gap between unit
sizes
The desire for larger living space increased
significantly during the pandemic, and this trend continued to play
out this month. Two-bedroom rents increased at the fastest pace of
all unit sizes in June, up 10.2% year-over-year to a new high of
$1,770. Two-bedroom rents were up
13.6% in June compared to 2019, rising $212 per month in just two years.
Although the gap between two-bedroom rents and smaller unit
sizes is getting larger, one-bedroom (+8.0%) and studio (+4.0%)
rents also posted significant gains in June, with one-bedroom rents
reaching a new high of $1,466. More
common to crowded cities, studios saw the steepest declines during
COVID but are finally catching up with the overall rental market
recovery. In June, studio rents rose 5.8% over 2019 to a new
two-year high of $1,294.
|
Realtor.com®June 2021 Rental Data - Top
10 Markets for Year-over-Year Rent Increases
|
|
|
Rank
|
Metro
|
Median
Rent
|
Rent
YY
|
|
1
|
Riverside-San
Bernardino-Ontario, CA
|
2,112
|
24.2%
|
|
2
|
Memphis,
TN-MS-AR
|
1,150
|
23.0%
|
|
3
|
Tampa-St.
Petersburg-Clearwater, FL
|
1,605
|
21.1%
|
|
4
|
Phoenix-Mesa-Scottsdale, AZ
|
1,590
|
20.9%
|
|
5
|
Sacramento--Roseville--Arden-Arcade, CA
|
1,821
|
17.5%
|
|
6
|
Cincinnati,
OH-KY-IN
|
1,200
|
17.1%
|
|
7
|
San Diego-Carlsbad,
CA
|
2,507
|
17.0%
|
|
8
|
Las
Vegas-Henderson-Paradise, NV
|
1,397
|
16.0%
|
|
9
|
Atlanta-Sandy
Springs-Roswell, GA
|
1,590
|
15.6%
|
|
10
|
Jacksonville,
FL
|
1,310
|
14.4%
|
|
Realtor.com®June 2021 Rental Data - 50
Largest Metropolitan Areas
|
|
|
Metro
|
Median
Rent
|
Rent
M/M
|
Rent
Y/Y
|
Studio Median
Rent
|
Studio Rent
Y/Y
|
1br Median
Rent
|
1br Rent
Y/Y
|
2br Median
Rent
|
2br Rent
Y/Y
|
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,590
|
3.5%
|
15.6%
|
$1,490
|
12.6%
|
$1,495
|
15.4%
|
$1,739
|
17.1%
|
|
Austin-Round Rock,
Texas
|
$1,492
|
5.0%
|
10.4%
|
$1,223
|
9.7%
|
$1,366
|
11.2%
|
$1,675
|
13.2%
|
|
Baltimore-Columbia-Towson, Md.
|
$1,620
|
1.3%
|
6.6%
|
$1,334
|
6.7%
|
$1,558
|
7.4%
|
$1,728
|
6.0%
|
|
Birmingham-Hoover,
Ala.
|
$1,070
|
3.0%
|
12.6%
|
$1,059
|
13.3%
|
$1,020
|
12.5%
|
$1,101
|
12.3%
|
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,450
|
2.1%
|
-2.0%
|
$2,060
|
-5.5%
|
$2,310
|
-2.9%
|
$2,700
|
-3.6%
|
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,180
|
3.1%
|
4.9%
|
$900
|
13.6%
|
$1,060
|
3.4%
|
$1,350
|
5.9%
|
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,434
|
2.4%
|
10.8%
|
$1,299
|
8.3%
|
$1,330
|
9.7%
|
$1,575
|
12.6%
|
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,700
|
3.0%
|
0.3%
|
$1,345
|
-6.5%
|
$1,650
|
-0.9%
|
$1,900
|
2.7%
|
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,200
|
4.4%
|
17.1%
|
$1,025
|
2.5%
|
$1,155
|
12.7%
|
$1,275
|
21.4%
|
|
Cleveland-Elyria,
Ohio
|
$1,094
|
0.8%
|
9.4%
|
$796
|
6.1%
|
$1,045
|
8.9%
|
$1,180
|
9.4%
|
|
Columbus,
Ohio
|
$1,149
|
2.2%
|
9.3%
|
$965
|
7.2%
|
$1,090
|
9.9%
|
$1,228
|
9.3%
|
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,389
|
3.7%
|
11.1%
|
$1,199
|
11.8%
|
$1,278
|
13.1%
|
$1,633
|
13.7%
|
|
Denver-Aurora-Lakewood, Colo.
|
$1,820
|
3.7%
|
10.2%
|
$1,505
|
4.5%
|
$1,699
|
11.1%
|
$2,125
|
13.3%
|
|
Detroit-Warren-Dearborn, Mich.
|
$1,190
|
2.7%
|
8.2%
|
$985
|
4.2%
|
$1,025
|
9.6%
|
$1,325
|
7.3%
|
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,545
|
3.0%
|
8.4%
|
$1,104
|
-6.4%
|
$1,450
|
5.5%
|
$1,750
|
11.1%
|
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,275
|
2.0%
|
6.3%
|
$1,246
|
7.0%
|
$1,165
|
6.4%
|
$1,434
|
7.0%
|
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,140
|
4.3%
|
12.8%
|
$980
|
2.2%
|
$1,050
|
11.5%
|
$1,260
|
17.0%
|
|
Jacksonville,
Fla.
|
$1,310
|
4.0%
|
14.4%
|
$1,049
|
36.2%
|
$1,216
|
16.9%
|
$1,420
|
15.5%
|
|
Kansas City,
Mo.-Kan.
|
$1,150
|
3.7%
|
8.9%
|
$905
|
6.5%
|
$1,025
|
5.2%
|
$1,350
|
10.3%
|
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,397
|
4.3%
|
16.0%
|
$900
|
12.5%
|
$1,289
|
19.4%
|
$1,525
|
16.6%
|
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,690
|
4.2%
|
4.3%
|
$2,000
|
0.1%
|
$2,400
|
2.4%
|
$3,195
|
5.6%
|
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,020
|
1.5%
|
8.5%
|
$899
|
5.1%
|
$958
|
4.7%
|
$1,130
|
14.7%
|
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,150
|
5.3%
|
23.0%
|
$995
|
2.1%
|
$1,125
|
23.4%
|
$1,210
|
24.1%
|
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,153
|
7.7%
|
13.3%
|
$1,791
|
15.5%
|
$1,913
|
11.8%
|
$2,485
|
13.0%
|
|
Milwaukee-Waukesha-West Allis, Wis.
|
$1,395
|
3.0%
|
3.3%
|
$1,095
|
0.5%
|
$1,299
|
1.5%
|
$1,599
|
4.2%
|
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,495
|
1.8%
|
2.3%
|
$1,199
|
-4.0%
|
$1,425
|
1.1%
|
$1,812
|
8.2%
|
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$1,416
|
1.9%
|
7.3%
|
$1,510
|
6.4%
|
$1,348
|
9.6%
|
$1,475
|
7.6%
|
|
New Orleans-Metairie,
La.
|
$1,395
|
3.3%
|
8.1%
|
$975
|
20.5%
|
$1,340
|
8.5%
|
$1,600
|
10.3%
|
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
$2,450
|
2.1%
|
-2.0%
|
$2,095
|
-13.4%
|
$2,250
|
-2.2%
|
$2,775
|
3.7%
|
|
Oklahoma City,
Okla.
|
$850
|
1.9%
|
6.4%
|
$675
|
-12.9%
|
$774
|
9.0%
|
$905
|
5.8%
|
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,500
|
3.9%
|
13.1%
|
$1,350
|
13.0%
|
$1,415
|
16.0%
|
$1,669
|
16.8%
|
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del-Md.
|
$1,615
|
0.9%
|
2.5%
|
$1,325
|
3.9%
|
$1,575
|
4.4%
|
$1,800
|
3.2%
|
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,590
|
3.0%
|
20.9%
|
$1,145
|
22.5%
|
$1,410
|
22.4%
|
$1,800
|
20.4%
|
|
Pittsburgh,
Pa.
|
$1,365
|
2.3%
|
8.3%
|
$1,186
|
4.6%
|
$1,295
|
7.5%
|
$1,509
|
10.3%
|
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,645
|
3.1%
|
9.7%
|
$1,375
|
3.0%
|
$1,595
|
8.1%
|
$1,880
|
16.6%
|
|
Providence-Warwick,
R.I.-Mass.
|
$1,785
|
2.0%
|
8.6%
|
$1,460
|
-5.8%
|
$1,563
|
8.9%
|
$2,028
|
14.3%
|
|
Raleigh,
N.C.
|
$1,380
|
4.7%
|
13.6%
|
$1,240
|
7.4%
|
$1,270
|
14.5%
|
$1,555
|
18.3%
|
|
Richmond,
Va.
|
$1,252
|
1.5%
|
13.9%
|
$1,021
|
12.7%
|
$1,166
|
19.0%
|
$1,387
|
13.7%
|
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,112
|
4.6%
|
24.2%
|
$1,374
|
9.9%
|
$1,788
|
20.4%
|
$2,449
|
32.7%
|
|
Rochester,
N.Y.
|
$1,225
|
2.1%
|
10.4%
|
$895
|
7.2%
|
$1,135
|
11.3%
|
$1,350
|
8.9%
|
|
Sacramento-Roseville-Arden-Arcade, Calif.
|
$1,821
|
3.5%
|
17.5%
|
$1,500
|
5.8%
|
$1,700
|
18.9%
|
$1,954
|
20.2%
|
|
San Antonio-New
Braunfels, Texas
|
$1,124
|
1.7%
|
7.0%
|
$965
|
5.5%
|
$1,039
|
9.6%
|
$1,284
|
9.1%
|
|
San Diego-Carlsbad,
Calif.
|
$2,507
|
4.9%
|
17.0%
|
$2,050
|
16.7%
|
$2,315
|
19.0%
|
$2,875
|
18.6%
|
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,801
|
3.2%
|
-6.1%
|
$2,305
|
-12.5%
|
$2,582
|
-8.2%
|
$3,311
|
-5.0%
|
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$2,860
|
2.3%
|
-3.7%
|
$2,284
|
2.5%
|
$2,660
|
-2.2%
|
$3,238
|
-2.6%
|
|
Seattle-Tacoma-Bellevue, Wash.
|
$1,910
|
3.2%
|
1.3%
|
$1,545
|
-3.0%
|
$1,923
|
0.9%
|
$2,166
|
3.4%
|
|
St. Louis,
Mo.-Ill.
|
$1,156
|
1.0%
|
7.8%
|
$950
|
5.7%
|
$1,126
|
9.9%
|
$1,240
|
10.2%
|
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,605
|
5.6%
|
21.1%
|
$1,425
|
13.1%
|
$1,470
|
25.1%
|
$1,800
|
26.1%
|
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,300
|
2.2%
|
11.0%
|
$1,123
|
4.0%
|
$1,279
|
12.4%
|
$1,392
|
14.6%
|
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$1,979
|
2.5%
|
1.0%
|
$1,599
|
-5.9%
|
$1,895
|
0.0%
|
$2,369
|
7.0%
|
Methodology
Rental data as of June 2021. Rental units include apartment
communities as well as private rentals (condos, townhomes,
single-family homes). All units were studio, 1-bedroom, or
2-bedroom units. National rents were calculated by averaging the
medians of the 50 largest metropolitan areas.
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SOURCE Realtor.com