National rents hit a new high of $1,807 in March; Sun Belt metros top the list of
biggest two-year rent gains, beating out large tech hubs
SANTA
CLARA, Calif., April 14,
2022 /PRNewswire/ -- U.S. rental prices grew by
nearly 20% from March 2020 to 2022
during the pandemic, according to the Realtor.com®
Monthly Rental Report released today. Additionally, two-year
rental trends indicate some redistribution of higher rents across
the 50 largest markets during COVID, as renters migrated from
expensive big tech cities to relatively more affordable areas. Sun
Belt metros topped the list of fastest-growing rental markets from
March 2020-2022, led by Miami,
Riverside, Calif. and Tampa, Fla., while big tech hubs posted many
of the country's smallest two-year rent gains.
"With asking rents nearly 1.2 times higher than two years ago,
our March data highlights rising rental affordability
challenges faced by many Americans today," said
Realtor.com® Chief Economist Danielle Hale. "At the same time, March rental
trends offer early signs of relief from the feverish pace of rent
growth, which moderated year-over-year for the second month in a
row. We expect cooling to continue over time, but the jury is still
out on whether rent growth will hit single-digits by the end of
2022. This is largely due to the mismatch between rental supply,
with vacancy rates at record-lows, and demand rising as some
would-be buyers potentially turn to renting in the face of higher
home prices and mortgage rates. While the jobs market is strong,
it's unlikely that we'll see enough income growth to keep rents
under 30% of monthly paychecks – especially with higher inflation
and everyday costs. Still, there is a silver lining for renters, as
rents won't be able to sustain an accelerated pace if incomes can't
keep up."
March 2022 Rental Metrics –
National
Unit
Size
|
Median
Rent
|
Change over March.
2021
|
Change over March.
2020
|
Overall
|
$1,807
|
17.0%
($263)
|
19.3%
($292)
|
Studio
|
$1,483
|
16.9%
($215)
|
12.6%
($166)
|
1-bed
|
$1,659
|
16.3%
($232)
|
17.9%
($252)
|
2-bed
|
$2,028
|
16.4%
($286)
|
21.9%
($364)
|
Rents grow by nearly 20% in the
two years since the pandemic began
The U.S. median rental price hit a new high of $1,807 in March, up 19.3% in just two years,
highlighting a roller coaster ride of change since the pandemic
began. Following a slowdown in 2020 at the onset of COVID, rents
significantly made up lost ground in 2021 and have since
maintained a feverish pace of annual rent growth. In fact, March
marked the eighth consecutive month of double-digit annual rent
gains (+17.0%), even as the pace moderated slightly over February
(+17.1%).
Although the underlying reasons have shifted over the course of
the pandemic, data suggests that renting remains a popular option
for Americans who desire flexibility. With the rise in remote
work earlier on, renting offered an attractive option for
those looking to explore living in relatively affordable markets
further from big tech cities. Now that for-sale home prices and
mortgage rates are climbing, many would-be buyers are turning to
renting and driving up rental prices. In March, rents grew nearly
four-times faster year-over-year (+17.0%) than in March 2020 (+4.3%).
With demand for more living space rising during COVID, rental
prices for two-bedroom (+21.9%) and one-bedroom (+17.9%) units
increased at the fastest rates from March 2020-2022. Studio rents,
which experienced the biggest rental declines at the onset of
COVID, posted relatively smaller two-year gains (+12.6%) in March.
However, studio rents are quickly making up lost ground, posting
the highest annual rental price gains among unit sizes for the
third consecutive month in March.
Pandemic drives some
redistribution of the fastest-growing rental markets
Among the 50 largest U.S. metros, COVID rental trends indicate
some redistribution of high rents from the biggest tech cities to
relatively more affordable metros outside of major downtowns.
In March, big tech cities accounted for none of the top 10 metros
by highest two-year rent growth. Instead, this list was dominated
by Sun Belt markets, led by Miami
with an increase of 58.0% over March
2020 (see table below).
Additionally, big tech cities represented five of the 10
slowest-growing rental markets from March 2020-2022. Despite these
setbacks, many major tech hubs continue to command some of the
nation's highest rents. Even San
Jose, where rents remain largely unchanged from March 2020 levels (+0.1%), claimed the country's
highest median rent ($3,075). Still,
March rental data signals some final opportunities for renters to
find savings in major metros like San
Francisco, where rents for studios (-13.0%) and one-beds
(-3.3%) declined over March 2020.
"With booming employment and the growing back-to-office wave
stoking demand, big rents are back in big tech cities. Still, our
March data suggests select tech hubs like San Francisco might still offer bargains on
studios relative to pre-COVID rents. And for some, such as Gen Zers
striking out on their own, even small rental savings could make a
large difference," said George
Ratiu, Realtor.com® Senior Economist &
Manager of Economic Research. "Regardless of your stage of life,
with rising prices taking a bigger bite out of paychecks, it's
important to stay focused on financial health by keeping rental
costs to a smaller percentage of your take-home pay. A tool like
the Realtor.com® Rental App can help you customize
your search and get alerts about newly-listed rentals in your
budget."
March 2022 Rental Metrics – Top
Markets by Biggest & Smallest Rent Gains Over March 2020
Biggest-Growth
Markets, March 2020-2022
|
Smallest-Growth
Markets, March 2020-2022
|
Rank
|
Metro
|
Average 2-yr
Rent Change
|
Median rent,
March 2022
|
Rank
|
Metro
|
Average 2-yr
Rent Change
|
Median rent,
March 2022
|
1
|
Miami, Fla.
|
58.0%
|
$2,988
|
1
|
Buffalo,
N.Y.
|
-2.3%
|
$1,293
|
2
|
Riverside,
Calif.
|
48.2%
|
$2,687
|
2
|
San Jose,
Calif.*
|
0.1%
|
$3,075
|
3
|
Tampa, Fla.
|
45.8%
|
$2,114
|
3
|
San Francisco,
Calif.*
|
0.3%
|
$2,982
|
4
|
Memphis,
Tenn.
|
41.4%
|
$1,403
|
4
|
Minneapolis,
Minn.
|
3.9%
|
$1,572
|
5
|
Orlando,
Fla.
|
34.7%
|
$1,886
|
5
|
Washington,
DC*
|
5.1%
|
$2,093
|
6
|
Las Vegas,
Nev.
|
34.4%
|
$1,623
|
6
|
Seattle,
Wash.*
|
6.1%
|
$2,129
|
7
|
New Orleans,
La.
|
33.3%
|
$1,800
|
7
|
Pittsburgh,
Pa.
|
6.3%
|
$1,485
|
8
|
Richmond,
Va.
|
30.0%
|
$1,430
|
8
|
Chicago,
Ill.*
|
6.7%
|
$1,856
|
9
|
Jacksonville,
Fla.
|
29.2%
|
$1,580
|
9
|
Milwaukee,
Wis.
|
8.4%
|
$1,515
|
10
|
Phoenix,
Ariz.
|
29.0%
|
$1,896
|
10
|
Detroit,
Mich.
|
8.8%
|
$1,360
|
*10 largest U.S. tech cities
March
2022 Rental Metrics – 50 Largest U.S. Metros
Metropolitan
Statistical Area
|
Overall
Median
Rent
|
Overall
Rent
YoY
|
Studio
Median
Rent
|
Studio
Rent
YoY
|
1-br
Median
Rent
|
1-br
Rent
YoY
|
2-br
Median
Rent
|
2-br
Rent
YoY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,822
|
18.8%
|
$1,667
|
18.3%
|
$1,688
|
18.9%
|
$2,025
|
18.7%
|
Austin-Round Rock,
Texas
|
$1,777
|
25.9%
|
$1,447
|
25.5%
|
$1,640
|
27.6%
|
$1,924
|
20.9%
|
Baltimore-Columbia-Towson, Md.
|
$1,768
|
10.5%
|
$1,467
|
15.9%
|
$1,707
|
13.6%
|
$1,875
|
10.1%
|
Birmingham-Hoover,
Ala.
|
$1,195
|
8.4%
|
$982
|
3.0%
|
$1,117
|
6.8%
|
$1,265
|
6.9%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,757
|
21.9%
|
$2,350
|
27.0%
|
$2,566
|
19.5%
|
$3,034
|
21.4%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,293
|
9.5%
|
$1,125
|
33.5%
|
$1,169
|
8.7%
|
$1,418
|
8.3%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,647
|
19.9%
|
$1,509
|
20.0%
|
$1,547
|
20.3%
|
$1,805
|
16.9%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,856
|
11.3%
|
$1,429
|
10.3%
|
$1,850
|
12.8%
|
$2,083
|
6.8%
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,395
|
7.7%
|
$1,139
|
11.9%
|
$1,337
|
7.4%
|
$1,550
|
5.9%
|
Cleveland-Elyria,
Ohio
|
$1,383
|
6.6%
|
$969
|
4.8%
|
$1,319
|
6.1%
|
$1,500
|
9.6%
|
Columbus,
Ohio
|
$1,254
|
10.8%
|
$1,052
|
5.7%
|
$1,178
|
11.6%
|
$1,358
|
8.6%
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,629
|
21.2%
|
$1,357
|
18.8%
|
$1,488
|
22.6%
|
$1,920
|
21.7%
|
Denver-Aurora-Lakewood,
Colo.
|
$1,938
|
15.2%
|
$1,601
|
15.1%
|
$1,813
|
15.5%
|
$2,274
|
16.0%
|
Detroit-Warren-Dearborn, Mich.
|
$1,360
|
0.7%
|
$1,074
|
2.3%
|
$1,140
|
3.8%
|
$1,500
|
1.7%
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,625
|
8.7%
|
$1,512
|
33.8%
|
$1,463
|
5.1%
|
$1,923
|
14.1%
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,430
|
14.4%
|
$1,333
|
12.1%
|
$1,301
|
15.1%
|
$1,601
|
14.3%
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,225
|
11.5%
|
$1,040
|
10.2%
|
$1,124
|
9.7%
|
$1,362
|
13.5%
|
Jacksonville,
Fla.
|
$1,580
|
23.2%
|
$1,309
|
19.9%
|
$1,464
|
22.1%
|
$1,748
|
28.0%
|
Kansas City,
Mo.-Kan.
|
$1,221
|
11.0%
|
$1,017
|
7.6%
|
$1,084
|
10.4%
|
$1,420
|
11.6%
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,623
|
25.1%
|
$1,280
|
13.8%
|
$1,496
|
26.7%
|
$1,741
|
26.0%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$3,000
|
20.2%
|
$2,235
|
21.0%
|
$2,731
|
23.2%
|
$3,410
|
17.6%
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,198
|
13.3%
|
$1,002
|
11.3%
|
$1,133
|
13.5%
|
$1,363
|
10.6%
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,403
|
24.6%
|
$1,233
|
13.7%
|
$1,330
|
24.8%
|
$1,553
|
27.6%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,988
|
57.2%
|
$2,499
|
50.9%
|
$2,614
|
53.7%
|
$3,415
|
56.1%
|
Milwaukee-Waukesha-West
Allis, Wis.
|
$1,515
|
8.6%
|
$1,223
|
8.7%
|
$1,419
|
9.3%
|
$1,750
|
10.4%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,572
|
5.3%
|
$1,230
|
4.5%
|
$1,481
|
5.3%
|
$1,905
|
3.8%
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
$1,727
|
23.1%
|
$1,707
|
24.0%
|
$1,604
|
21.8%
|
$1,864
|
23.2%
|
New Orleans-Metairie,
La.
|
$1,800
|
15.2%
|
$1,257
|
0.6%
|
$1,594
|
6.3%
|
$2,053
|
14.0%
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$2,750
|
14.6%
|
$2,525
|
26.3%
|
$2,496
|
9.1%
|
$3,056
|
10.9%
|
Oklahoma City,
Okla.
|
$943
|
10.9%
|
$797
|
15.7%
|
$854
|
10.9%
|
$1,000
|
9.1%
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,886
|
35.0%
|
$1,645
|
27.5%
|
$1,739
|
33.0%
|
$2,129
|
40.9%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$1,760
|
8.3%
|
$1,406
|
7.5%
|
$1,656
|
3.8%
|
$1,955
|
5.7%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,896
|
23.4%
|
$1,405
|
19.6%
|
$1,655
|
24.5%
|
$2,224
|
18.8%
|
Pittsburgh,
Pa.
|
$1,485
|
7.9%
|
$1,218
|
9.4%
|
$1,449
|
11.0%
|
$1,595
|
1.0%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,740
|
11.3%
|
$1,413
|
11.9%
|
$1,685
|
10.6%
|
$2,021
|
12.7%
|
Providence-Warwick,
R.I.-Mass.*
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
Raleigh,
N.C.
|
$1,591
|
23.1%
|
$1,452
|
22.5%
|
$1,471
|
24.7%
|
$1,750
|
20.7%
|
Richmond,
Va.
|
$1,430
|
18.5%
|
$1,137
|
15.7%
|
$1,300
|
19.5%
|
$1,538
|
16.0%
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,687
|
13.9%
|
$1,515
|
1.7%
|
$2,155
|
14.9%
|
$3,000
|
16.1%
|
Rochester,
N.Y.
|
$1,333
|
11.4%
|
$980
|
10.7%
|
$1,238
|
13.9%
|
$1,430
|
9.6%
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
$2,028
|
12.1%
|
$1,895
|
15.6%
|
$1,873
|
8.7%
|
$2,204
|
12.1%
|
San Antonio-New
Braunfels, Texas
|
$1,389
|
22.3%
|
$1,272
|
22.4%
|
$1,264
|
22.7%
|
$1,583
|
22.2%
|
San Diego-Carlsbad,
Calif.
|
$3,016
|
24.8%
|
$2,376
|
20.2%
|
$2,716
|
23.3%
|
$3,375
|
21.5%
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,982
|
11.4%
|
$2,367
|
18.3%
|
$2,750
|
12.6%
|
$3,483
|
11.4%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,075
|
17.1%
|
$2,421
|
21.2%
|
$2,840
|
17.2%
|
$3,465
|
17.6%
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,129
|
17.5%
|
$1,774
|
23.5%
|
$2,095
|
16.5%
|
$2,599
|
17.9%
|
St. Louis,
Mo.-Ill.
|
$1,310
|
9.2%
|
$995
|
2.1%
|
$1,238
|
9.9%
|
$1,450
|
9.6%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$2,114
|
31.1%
|
$1,944
|
27.3%
|
$1,876
|
31.4%
|
$2,358
|
29.8%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,524
|
15.1%
|
$1,300
|
9.7%
|
$1,449
|
12.6%
|
$1,634
|
13.6%
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$2,093
|
13.1%
|
$1,721
|
14.8%
|
$2,000
|
11.9%
|
$2,440
|
9.9%
|
Methodology
Rental data as of March 2022 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. We use communities that reliably
report data each month within the top 50 largest metropolitan
areas. National rents were calculated by averaging the medians of
the 50 largest metropolitan areas. *Providence, RI March
2022 rental data is currently under review.
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