SANTA CLARA, Calif.,
Sept. 16, 2021 /PRNewswire/
-- The U.S. rental market is booming. Rental prices hit
double-digit growth for the first time in two years in August and
grew three times faster than in March
2020 (prior to the onset of COVID), according to the
Realtor.com® Monthly Rental Report released today.
Additionally, rents posted double-digit gains over last year in
more than half of the 50 largest metros, led by Tampa (+30.6%), Riverside, Calif. (+28.6%), Miami (+27.0%) and Phoenix (+25.5%).
"Put simply, August trends suggest rents are making up for lost
time. Rents remained low during some of the worst months of the
pandemic, growing at a sub-2% pace from September 2020 to March
2021, which is also when for-sale home prices were growing
by double-digits," said Realtor.com® Chief Economist
Danielle Hale. "Now we've reached a
stage in the COVID recovery where people are ready to move, and
we're seeing urgency to find new living spaces immediately. A lot
of this demand can be attributed to vaccines opening up offices and
city-life, young adults feeling more confident to strike out on
their own, and homebuyers needing to take a break from the red hot
housing market. And many are willing to pay top dollar to make that
happen quickly, which may lead to even more growth in rents over
the next few months."
National rents rise by double-digits as all unit sizes reach
new rent highs
The U.S. median rental price reached a new high of $1,633 in August as rent growth accelerated to a
double-digit pace, up 11.5% year-over-year. Annual rent growth has
now tripled since March 2020 (+3.2%)
before the pandemic began.
All unit sizes tracked by Realtor.com® reached new
rental price highs in August: Two-bedrooms at $1,828, one-bedrooms at $1,524 and studios at $1,338. With demand for more space rising during
the pandemic, both two-bedroom (+12.3%) and one-bedroom (11.6%)
rents grew by double-digits over last year in August. Studio rents
also saw a sizable increase of 8.3% year-over-year to a median
$1,338 per month.
Rents continue surging in the majority of large markets, led
by secondary metros
In 28 of the 50 largest U.S. markets, rents posted double-digit
gains over last year in August. Median rental prices increased by
at least 21% year-over-year in each of the 10 metros by August's
highest yearly rent growth, which were: Tampa (+30.6%), Riverside (+28.6%), Miami (+27.0%), Phoenix (+25.5%), Las Vegas (+23.4%), San Diego (+23.4%), Memphis (+21.8%), Austin (+21.7%), Orlando (+21.4%) and Atlanta (+21.2%).
Many of August's fastest-growing rental markets are secondary
metros offering relatively affordable housing and balanced
lifestyles, which have attracted big tech city renters working
remotely during COVID. With rents rising at a faster yearly pace
than in nearby Los Angeles
(+10.2%) in August, Riverside has
held one of the top spots for the highest rent gains for the fourth
straight month. Even with the surge in rents, Riverside's median rental price of
$2,234 in August remained lower than
in Los Angeles ($2,800).
Big tech city rents still lag behind historical peaks, but
are gaining ground
Over the course of this summer (June-August 2021), rents hit new two-year highs in 46
of the 50 largest metros. The remaining four markets in August were
big tech cities where annual rent growth had yet to fully recover
from steep declines seen earlier in the pandemic: New York (-6.5%), Boston (0.0%), San
Francisco (+1.4%) and San
Jose (+7.0%). Rents may not be high relative to recent
history in these big tech cities, but they are more expensive than
in other markets. All four of these areas made August's top five
list of metros by highest rental prices, led by San Jose at a median $2,995.
On top of this, big tech city rents are gaining ground as some
homebuyers consider taking a break from this year's challenging
market, marked by a shortage of affordable homes for sale. In
August, San Jose rents grew over
50% faster year-over-year than overall home listing prices (+4.2%),
at a median $1.25 million in August.
If August trends continue, San
Jose rents are on track to surpass the previous peak seen in
March 2020 ($3,127) by end-of-year.
"Many of today's renters are future homebuyers, so while rising
rents can be viewed as a good thing – a signal of rebounding
economic activity – they need to be navigated carefully by
households hoping to own a home one day. Whether you plan on buying
a home in 2022 or 2027, it's important to remember that housing
costs are typically your largest monthly expense. In other words,
what you spend on rent will impact how much you have left to save.
Prospective renters can use tools like the Realtor.com®
Rentals app to search for and set up custom search alerts about
rentals that meet their criteria – including price ranges – to help
them stay on-budget," Hale said.
Renters planning on homebuying in the future can also use tools
like Realtor.com®'s Real Estate app to stay on top of
home prices in their desired areas and its Mortgage Calculator to
help them manage their budgets, on their timeline for making the
transition from renting to buying.
Realtor.com® August 2021 Rental Data -
Top 10 Markets for Rent Increases
|
Rank
|
Metro
|
Overall
Rent
|
Overall Rent
YY
|
1
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,760
|
30.6%
|
2
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,234
|
28.6%
|
3
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,432
|
27.0%
|
4
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,688
|
25.5%
|
5
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,515
|
23.4%
|
6
|
San Diego-Carlsbad,
Calif.
|
$2,695
|
23.4%
|
7
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,200
|
21.8%
|
8
|
Austin-Round Rock,
Texas
|
$1,618
|
21.7%
|
9
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,620
|
21.4%
|
10
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,697
|
21.2%
|
Realtor.com® August 2021 Rental Data -
50 Largest Metropolitan Areas
|
Metro
|
Overall
Rent
|
Overall Rent
YY
|
1br
Rent
|
1br Rent
YY
|
2br
Rent
|
2br Rent
YY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,697
|
21.2%
|
$1,600
|
22.2%
|
$1,857
|
21.8%
|
Austin-Round Rock,
Texas
|
$1,618
|
21.7%
|
$1,486
|
22.5%
|
$1,809
|
22.1%
|
Baltimore-Columbia-Towson, Md.
|
$1,685
|
9.6%
|
$1,600
|
9.7%
|
$1,782
|
7.7%
|
Birmingham-Hoover,
Ala.
|
$1,093
|
12.7%
|
$1,056
|
12.9%
|
$1,120
|
12.6%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,499
|
0.0%
|
$2,365
|
0.8%
|
$2,700
|
-4.9%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,195
|
9.6%
|
$1,070
|
7.3%
|
$1,355
|
11.5%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,515
|
17.5%
|
$1,399
|
17.1%
|
$1,669
|
17.1%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,690
|
-0.3%
|
$1,650
|
0.3%
|
$1,895
|
-0.3%
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,195
|
12.2%
|
$1,136
|
9.2%
|
$1,275
|
10.0%
|
Cleveland-Elyria,
Ohio
|
$1,105
|
7.3%
|
$1,075
|
9.7%
|
$1,205
|
10.1%
|
Columbus,
Ohio
|
$1,175
|
11.4%
|
$1,100
|
10.6%
|
$1,270
|
12.4%
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,450
|
16.0%
|
$1,330
|
17.5%
|
$1,725
|
19.8%
|
Denver-Aurora-Lakewood, Colo.
|
$1,888
|
14.4%
|
$1,769
|
16.0%
|
$2,185
|
15.3%
|
Detroit-Warren-Dearborn, Mich.
|
$1,205
|
9.0%
|
$1,045
|
10.0%
|
$1,350
|
7.1%
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,525
|
5.2%
|
$1,425
|
3.3%
|
$1,700
|
6.6%
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,300
|
7.9%
|
$1,195
|
9.3%
|
$1,474
|
8.8%
|
Indianapolis-Carmel-Anderson, IN
|
$1,160
|
14.1%
|
$1,074
|
13.7%
|
$1,300
|
18.7%
|
Jacksonville,
Fla.
|
$1,406
|
20.5%
|
$1,315
|
24.8%
|
$1,533
|
22.6%
|
Kansas City,
Mo.-Kan.
|
$1,149
|
7.1%
|
$1,045
|
5.9%
|
$1,350
|
8.0%
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,515
|
23.4%
|
$1,385
|
24.8%
|
$1,655
|
24.6%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,800
|
10.2%
|
$2,550
|
10.9%
|
$3,374
|
12.5%
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,030
|
8.4%
|
$981
|
6.1%
|
$1,121
|
13.2%
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,200
|
21.8%
|
$1,181
|
22.6%
|
$1,250
|
25.0%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,432
|
27.0%
|
$2,150
|
26.5%
|
$2,802
|
24.5%
|
Milwaukee-Waukesha-West Allis, Wis.
|
$1,415
|
5.6%
|
$1,305
|
2.8%
|
$1,650
|
9.6%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,500
|
3.4%
|
$1,435
|
2.9%
|
$1,833
|
7.8%
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$1,540
|
16.2%
|
$1,486
|
18.4%
|
$1,577
|
13.8%
|
New Orleans-Metairie,
La.
|
$1,329
|
-3.3%
|
$1,279
|
-1.6%
|
$1,500
|
-0.3%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
$2,455
|
-6.5%
|
$2,275
|
-9.0%
|
$2,750
|
-5.2%
|
Oklahoma City,
Okla.
|
$850
|
5.1%
|
$759
|
5.4%
|
$899
|
2.7%
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,620
|
21.4%
|
$1,513
|
22.5%
|
$1,818
|
28.0%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del-Md.
|
$1,630
|
2.3%
|
$1,580
|
2.9%
|
$1,845
|
4.4%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,688
|
25.5%
|
$1,515
|
27.6%
|
$1,894
|
26.3%
|
Pittsburgh,
Pa.
|
$1,395
|
10.6%
|
$1,350
|
11.6%
|
$1,512
|
10.4%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,695
|
12.5%
|
$1,635
|
10.9%
|
$1,914
|
17.1%
|
Providence-Warwick,
R.I.-Mass.
|
$1,795
|
7.3%
|
$1,600
|
4.4%
|
$2,000
|
11.1%
|
Raleigh,
N.C.
|
$1,473
|
18.9%
|
$1,359
|
19.7%
|
$1,649
|
22.1%
|
Richmond,
Va.
|
$1,285
|
12.8%
|
$1,175
|
15.3%
|
$1,440
|
15.0%
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,234
|
28.6%
|
$1,900
|
24.5%
|
$2,545
|
34.0%
|
Rochester,
N.Y.
|
$1,209
|
9.4%
|
$1,100
|
10.1%
|
$1,335
|
6.8%
|
Sacramento-Roseville-Arden-Arcade, Calif.
|
$1,895
|
18.9%
|
$1,764
|
18.8%
|
$2,000
|
18.0%
|
San Antonio-New
Braunfels, Texas
|
$1,182
|
11.3%
|
$1,098
|
13.8%
|
$1,354
|
13.9%
|
San Diego-Carlsbad,
Calif.
|
$2,695
|
23.4%
|
$2,495
|
27.0%
|
$2,998
|
20.9%
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,895
|
1.4%
|
$2,690
|
-0.4%
|
$3,352
|
-1.4%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$2,995
|
7.0%
|
$2,786
|
7.6%
|
$3,400
|
6.3%
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,053
|
11.9%
|
$2,068
|
12.4%
|
$2,299
|
8.4%
|
St. Louis,
Mo.-Ill.
|
$1,155
|
6.5%
|
$1,129
|
10.1%
|
$1,240
|
7.8%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,760
|
30.6%
|
$1,629
|
35.9%
|
$1,980
|
35.2%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,350
|
13.4%
|
$1,315
|
13.6%
|
$1,445
|
15.6%
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$2,051
|
5.7%
|
$1,961
|
4.6%
|
$2,405
|
8.5%
|
Methodology
Rental data as of August 2021, with data history going back to
March 2019. 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.
About Realtor.com®
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makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 20 years ago, and today through
its website and mobile apps is a trusted source for the
information, tools and professional expertise that help people move
confidently through every step of their home journey. Using
proprietary data science and machine learning technology,
Realtor.com® pairs buyers and sellers with local agents
in their market, helping take the guesswork out of buying and
selling a home. For professionals, Realtor.com® is a
trusted provider of consumer connections and branding solutions
that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual
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Media Contact
rachel.conner@move.com
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SOURCE Realtor.com