SANTA CLARA, Calif.,
Oct. 28, 2021 /PRNewswire/ -- From
Broadway lights to bustling offices, big cities are back – and so
are surging downtown rental prices. Following sharp declines during
the pandemic, September data shows rents in the 10 biggest U.S.
tech cities like Austin and
New York surpassed March 2020 levels by an average of 6.3%,
according to the Realtor.com® Monthly Rental Report
released today. Nationally, rents grew at a double-digit annual
pace (+13.6%) for the second month in a row.
"With rents continuing to surge to new highs nationwide,
including in big tech hubs, September data confirms the U.S. rental
market has moved past the recovery phase and is fully back in
business. Rental demand remains unseasonably high, driven by
still-limited housing supply, rising mortgage rates pushing buyers
towards renting, and more people returning to big cities," said
George Ratiu, Manager of Economic
Research for Realtor.com®. "At the same time, it's
important to put recent rental activity in the context of housing
trends throughout the pandemic. Rents didn't rebound from COVID
declines as quickly as for-sale home prices, but rental activity
has now reached a level not unlike the homebuying frenzy seen
earlier this year, before fall seasonality kicked in. The good news
is that if rents continue to parallel home listing prices, rental
price growth could potentially begin cooling this winter."
Rents surge in major urban tech hubs following steep pandemic
declines
While big city rents dropped or stalled during the pandemic as
people fled to less expensive and crowded areas, large urban rental
markets began to rebound in April
2021 with the rollout of vaccines. However, rent growth in
these major metros has found its stride over the past two months,
with September data showing big city rents have not only recovered
but are making up for lost time. In most counties at the heart of
the nation's 10 biggest tech cities, the September rental growth
rate was higher than in March 2020,
before the onset of COVID.
- The average rent across the 10 biggest U.S. tech cities grew by
9.9% year-over-year in September and was 6.3% higher than in
March 2020. For comparison, average
big tech metro rents declined by as much as 7.2% at the height of
the pandemic.
-
- Some of the cities with September's biggest annual rent gains,
such as Austin (+22.3%) and
Denver (+15.5%), did not
necessarily experience the steepest COVID declines among big tech
hubs during the pandemic.
- However, rents are surging even in major metros that
experienced some of the nation's biggest COVID declines. For
instance, Seattle rents were 8.1%
higher in September compared to March
2020, bouncing back from declines of 12.3% at the city's
lowest point during the pandemic.
"The days of rental deals in metros like San Francisco and Manhattan may be over, but there is a silver
lining for renters with more flexible timelines. Big city rental
competition and high prices is a sign of normalcy, which could
precede more seasonal norms like winter cooling in rent growth in
parts of the U.S.," Raitu added. "For renters on tighter schedules,
compromises will be key to staying on budget and not getting swept
up in bidding wars. If location and size are your must-haves,
consider deprioritizing extra amenities or upgrades. You can use
tools like the Realtor.com® Rentals app to set up
searches and alerts for rentals that match your top criteria."
Rental prices quicken their double digit pace
For the second consecutive month, national rents grew at a
double-digit pace over last year and at a higher rate than in
August. September's rent growth was faster than in a typical year,
but month-over-month has been getting smaller since the summer.
This suggests a return to seasonality may be on the horizon for
this coming December or January.
- In September, the U.S. median rental price reached a new high
of $1,654, up 13.6%
year-over-year.
-
- Annual rent growth in September was four-times faster than in
March 2020 (+3.2%), before the onset
of COVID.
- National rents are now 15.5% ($222 per month) higher than in September 2019.
- September's national rent increase over 2020 was higher than in
August (+11.5%), but month-over-month increases have been
moderating from the feverish pace seen over the summer, up 3.2%
from May to June.
-
- In a typical pre-COVID year, rents have historically fluctuated
by less than 1% on a monthly basis.
- Nationally, all unit sizes tracked by Realtor.com®
saw double-digit rent growth and reached new rental price highs in
September. COVID demand for more space continues to drive the
highest price growth among larger units, led by two-bedrooms at a
yearly increase of 14.4% to $1,855.
-
- One-bedroom units also saw a sizable rental price increase
(+13.7% year-over-year) to $1,542 in
September.
- For the first time in 2021, studio rent growth hit
double-digits, up 11.3% over last year to a median of $1,351 per month.
- Rents grew by double-digits in more than half (31) of the 50
largest U.S. markets in September, led by secondary metros like
Tampa (+33.3%).
-
- Seven metros posted yearly rent gains of at least 25%; in
addition to Tampa, these were:
Miami (+31.6%), Riverside, Calif. (+26.5%), Phoenix (+26.4%), Las Vegas (+25.9%), Austin (+25.3%) and San Diego (+25.1%).
Realtor.com® September 2021 Rental Data
- 10 Biggest U.S. Tech Hubs
|
Metro
|
Pre-
COVID
Rent (Mar
2020)
|
COVID
Low
Month
|
COVID
Low Rent
|
COVID Low
vs. March
2020
|
Sept. 2021
Rent
|
Sept. 2021
Rent YoY
|
Sept 2021
vs. COVID
Low
|
Sept. 2021
vs. March
2020
|
Austin,
Texas
|
$1,367
|
Oct-20
|
$1,300
|
-4.9%
|
$1,647
|
25.3%
|
26.7%
|
20.5%
|
Boston,
Mass.
|
$1,680
|
Dec-20
|
$1,600
|
-4.8%
|
$1,895
|
3.4%
|
18.4%
|
12.8%
|
Chicago,
Ill.
|
$2,300
|
Apr-21
|
$2,350
|
2.2%
|
$2,500
|
2.7%
|
6.4%
|
8.7%
|
Denver,
Colo.
|
$2,635
|
Feb-21
|
$2,488
|
-5.6%
|
$2,850
|
15.5%
|
14.5%
|
8.2%
|
Los Angeles,
Calif.
|
$1,938
|
Dec-20
|
$1,700
|
-12.3%
|
$2,095
|
13.8%
|
23.2%
|
8.1%
|
New York,
N.Y.
|
$1,976
|
Dec-20
|
$1,836
|
-7.1%
|
$2,075
|
-3.8%
|
13.0%
|
5.0%
|
San Francisco,
Calif.
|
$1,650
|
Dec-20
|
$1,593
|
-3.5%
|
$1,695
|
5.5%
|
6.4%
|
2.7%
|
San Jose,
Calif.
|
$2,480
|
Jan-21
|
$2,242
|
-9.6%
|
$2,517
|
10.8%
|
12.3%
|
1.5%
|
Seattle,
Wash.
|
$2,923
|
Jan-21
|
$2,610
|
-10.7%
|
$2,895
|
16.7%
|
10.9%
|
-1.0%
|
Washington,
D.C.
|
$3,127
|
Dec-20
|
$2,645
|
-15.4%
|
$3,015
|
9.2%
|
14.0%
|
-3.6%
|
|
Realtor.com® September 2021 Rental Data
- 50 Largest Metropolitan Areas
|
Metro
|
Overall
Rent
|
Overall
Rent YY
|
Studio
Rent
|
Studio
Rent
YoY
|
1br
Rent
|
1br Rent
YY
|
2br
Rent
|
2br Rent
YY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,720
|
22.3%
|
$1,591
|
16.9%
|
$1,618
|
23.1%
|
$1,878
|
22.3%
|
Austin-Round Rock,
Texas
|
$1,647
|
25.3%
|
$1,315
|
21.2%
|
$1,523
|
26.7%
|
$1,835
|
26.1%
|
Baltimore-Columbia-Towson, Md.
|
$1,701
|
11.0%
|
$1,495
|
19.7%
|
$1,615
|
10.6%
|
$1,809
|
9.6%
|
Birmingham-Hoover,
Ala.
|
$1,115
|
14.4%
|
$1,056
|
12.9%
|
$1,070
|
12.8%
|
$1,175
|
18.1%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,517
|
3.4%
|
$2,195
|
6.6%
|
$2,400
|
5.5%
|
$2,775
|
0.9%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,213
|
13.9%
|
$795
|
0.6%
|
$1,075
|
8.0%
|
$1,390
|
18.8%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,543
|
20.5%
|
$1,402
|
22.4%
|
$1,420
|
19.1%
|
$1,685
|
18.4%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,695
|
2.7%
|
$1,150
|
-14.8%
|
$1,650
|
3.1%
|
$1,950
|
2.6%
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,200
|
12.7%
|
$1,077
|
12.8%
|
$1,143
|
11.5%
|
$1,275
|
8.5%
|
Cleveland-Elyria,
Ohio
|
$1,140
|
8.6%
|
$800
|
4.0%
|
$1,081
|
8.5%
|
$1,235
|
10.3%
|
Columbus,
Ohio
|
$1,185
|
12.5%
|
$999
|
13.7%
|
$1,118
|
13.5%
|
$1,282
|
12.3%
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,475
|
18.2%
|
$1,269
|
20.9%
|
$1,357
|
20.6%
|
$1,765
|
22.6%
|
Denver-Aurora-Lakewood, Colo.
|
$1,895
|
15.5%
|
$1,590
|
16.0%
|
$1,771
|
17.1%
|
$2,184
|
16.3%
|
Detroit-Warren-Dearborn, Mich.
|
$1,225
|
7.6%
|
$995
|
11.2%
|
$1,060
|
8.9%
|
$1,375
|
7.0%
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,550
|
7.6%
|
$1,220
|
6.1%
|
$1,445
|
4.4%
|
$1,750
|
9.4%
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,319
|
9.9%
|
$1,275
|
13.7%
|
$1,209
|
11.1%
|
$1,485
|
9.6%
|
Indianapolis-Carmel-Anderson, IN
|
$1,168
|
13.4%
|
$1,005
|
9.2%
|
$1,084
|
12.8%
|
$1,309
|
18.6%
|
Jacksonville,
Fla.
|
$1,446
|
23.7%
|
$1,130
|
38.1%
|
$1,359
|
28.3%
|
$1,595
|
28.0%
|
Kansas City,
Mo.-Kan.
|
$1,150
|
7.3%
|
$920
|
2.8%
|
$1,043
|
6.0%
|
$1,350
|
8.0%
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,548
|
25.9%
|
$925
|
15.6%
|
$1,422
|
27.0%
|
$1,695
|
27.0%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,850
|
13.8%
|
$2,122
|
10.5%
|
$2,600
|
14.0%
|
$3,395
|
13.9%
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,035
|
8.9%
|
$890
|
2.9%
|
$980
|
5.4%
|
$1,164
|
17.3%
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,217
|
22.9%
|
$1,100
|
9.5%
|
$1,195
|
24.5%
|
$1,275
|
25.4%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,500
|
31.6%
|
$1,972
|
27.2%
|
$2,200
|
29.4%
|
$2,894
|
28.6%
|
Milwaukee-Waukesha-West Allis, Wis.
|
$1,417
|
6.1%
|
$1,100
|
2.8%
|
$1,315
|
4.0%
|
$1,660
|
10.7%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,510
|
4.1%
|
$1,200
|
0.4%
|
$1,436
|
4.4%
|
$1,835
|
7.9%
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$1,576
|
20.1%
|
$1,555
|
13.5%
|
$1,517
|
22.0%
|
$1,620
|
17.5%
|
New Orleans-Metairie,
La.
|
$1,350
|
0.0%
|
$975
|
-2.5%
|
$1,300
|
0.1%
|
$1,550
|
4.0%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
$2,500
|
-3.8%
|
$2,250
|
-2.1%
|
$2,300
|
-8.0%
|
$2,840
|
-2.1%
|
Oklahoma City,
Okla.
|
$850
|
6.4%
|
$700
|
0.4%
|
$760
|
7.0%
|
$899
|
4.5%
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,655
|
24.5%
|
$1,450
|
23.9%
|
$1,550
|
26.0%
|
$1,855
|
30.5%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del-Md.
|
$1,649
|
3.4%
|
$1,275
|
0.8%
|
$1,580
|
3.3%
|
$1,850
|
3.9%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,700
|
26.4%
|
$1,284
|
32.5%
|
$1,530
|
28.0%
|
$1,899
|
26.6%
|
Pittsburgh,
Pa.
|
$1,415
|
11.6%
|
$1,220
|
15.6%
|
$1,376
|
13.7%
|
$1,560
|
13.5%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,710
|
14.1%
|
$1,395
|
7.4%
|
$1,656
|
13.4%
|
$1,930
|
17.0%
|
Providence-Warwick,
R.I.-Mass.
|
$1,795
|
8.8%
|
$1,410
|
-7.5%
|
$1,600
|
4.2%
|
$1,990
|
13.2%
|
Raleigh,
N.C.
|
$1,500
|
22.4%
|
$1,376
|
22.5%
|
$1,390
|
23.7%
|
$1,660
|
23.9%
|
Richmond,
Va.
|
$1,299
|
15.8%
|
$1,085
|
13.0%
|
$1,173
|
15.0%
|
$1,454
|
15.8%
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,245
|
26.5%
|
$1,365
|
10.5%
|
$1,905
|
23.7%
|
$2,550
|
31.8%
|
Rochester,
N.Y.
|
$1,200
|
4.3%
|
$875
|
4.0%
|
$1,100
|
4.1%
|
$1,325
|
5.6%
|
Sacramento-Roseville-Arden-Arcade, Calif.
|
$1,920
|
20.4%
|
$1,708
|
16.8%
|
$1,800
|
21.6%
|
$2,045
|
20.4%
|
San Antonio-New
Braunfels, Texas
|
$1,206
|
13.9%
|
$1,039
|
12.4%
|
$1,130
|
17.8%
|
$1,390
|
16.9%
|
San Diego-Carlsbad,
Calif.
|
$2,745
|
25.1%
|
$2,129
|
16.3%
|
$2,539
|
27.9%
|
$3,080
|
23.4%
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,895
|
5.5%
|
$2,395
|
7.0%
|
$2,700
|
5.5%
|
$3,370
|
3.1%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,015
|
10.8%
|
$2,431
|
19.8%
|
$2,789
|
12.6%
|
$3,395
|
9.6%
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,095
|
16.7%
|
$1,675
|
12.8%
|
$2,097
|
18.1%
|
$2,375
|
13.0%
|
St. Louis,
Mo.-Ill.
|
$1,150
|
6.0%
|
$934
|
4.9%
|
$1,115
|
9.2%
|
$1,225
|
6.1%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,800
|
33.3%
|
$1,612
|
37.4%
|
$1,673
|
39.4%
|
$2,000
|
34.2%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,365
|
14.2%
|
$1,145
|
7.0%
|
$1,324
|
13.5%
|
$1,455
|
16.4%
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$2,075
|
9.2%
|
$1,680
|
4.9%
|
$1,991
|
8.5%
|
$2,400
|
9.3%
|
Methodology
Rental data as of September 2021
for units advertised as for-rent on Realtor.com®. 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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Media Contact
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