While expensive markets in the West saw
declines, prices in the more affordable Midwest continued to rise
even faster
SANTA
CLARA, Calif., April 25,
2023 /PRNewswire/ -- The Realtor.com®
March Rental Report found a split in rental price trends, with some
of the country's most expensive markets seeing year-over-year price
declines, while more affordable markets continued to grow at an
even faster pace, as consumers sought affordability after the past
several years of quick growth and high rental prices.
"Mirroring trends that we've seen in the for-sale market,
affordability is shaping housing demand, with lower-cost areas
continuing to see stronger rent growth, home price increases, and
competitive real estate markets. Markets in the Midwest and
Northeast are benefiting from this trend while cities in the West
are adjusting in the opposite direction," said
Realtor.com® Chief Economist Danielle Hale. "The good news for renters is
that overall rent prices and price growth have both cooled from
their highs in early 2022, offering some relief for cost-burdened
consumers who are facing higher prices across the board."
California rent prices on
the decline; Midwest picking up speed
In March, 14 markets saw year-over-year price declines,
including San Francisco (-0.8%)
and Los Angeles (-0.8%), which saw
their first year-over-year declines in 2 years. Riverside-San
Bernardino, Calif. (-5.3%) and Sacramento, Calif. (-2.1%) also saw declines
in March. These declines could be connected by tech layoffs and a
weakening job market in the state.
On the flip side, Midwestern markets including Indianapolis, Ind. (10.3%), Cincinnati, Ohio (9.6%), and Milwaukee, Wisc. (7.8%) continued to rise
quickly year-over-year. Rent growth rates in Sun Belt markets,
which grew very quickly during the pandemic, continued to slow
(0.2%), but the median asking rent was still $408 (27.2%) higher than four years ago
(pre-pandemic).
Rents up significantly since the pandemic began
Nationally, the U.S. rental market experienced single-digit
growth for the eighth month in a row after 14 months of slowing
from its high of 16.4% growth in January
2022. The median rent in the 50 largest metros increased to
$1,732, up by $15 from last month and down $32 from last year's peak. However, this is still
$354 (25.7%) higher than the same
time in 2019 before the pandemic.
Rental Data – 50 Largest Metropolitan Areas – March 2023
Metro
|
0-2 Bedrooms
Median Rent
|
0-2 Bedrooms
Rent
YOY
|
Unemployment
Rate
YOY (Feb. 23)
|
0-2 Bedrooms
Median
Listing Price YOY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,658
|
-0.7 %
|
0.1 ppt
|
8.0 %
|
Austin-Round Rock,
Texas
|
$1,675
|
-2.5 %
|
0.5 ppt
|
-0.1 %
|
Baltimore-Columbia-Towson, Md.
|
$1,932
|
2.1 %
|
-0.5 ppt
|
-2.8 %
|
Birmingham-Hoover,
Ala.
|
$1,253
|
5.9 %
|
0 ppt
|
7.3 %
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,819
|
5.7 %
|
-0.5 ppt
|
3.5 %
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
NA
|
NA
|
-0.1 ppt
|
9.5 %
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,557
|
-0.5 %
|
-0.7 ppt
|
7.0 %
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.
|
$1,842
|
6.8 %
|
-0.2 ppt
|
4.0 %
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,196
|
9.6 %
|
-1.1 ppt
|
5.1 %
|
Cleveland-Elyria,
Ohio
|
$1,201
|
1.2 %
|
-0.6 ppt
|
4.8 %
|
Columbus,
Ohio
|
$1,218
|
4.9 %
|
-0.3 ppt
|
9.9 %
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,502
|
-1.0 %
|
0.2 ppt
|
-0.3 %
|
Denver-Aurora-Lakewood,
Colo.
|
$2,058
|
-0.1 %
|
-0.7 ppt
|
-7.1 %
|
Detroit-Warren-Dearborn, Mich.
|
$1,324
|
6.6 %
|
-1 ppt
|
1.6 %
|
Hartford-West
Hartford-East Hartford, Conn.
|
NA
|
NA
|
-0.5 ppt
|
NA
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,523
|
3.7 %
|
0.1 ppt
|
6.4 %
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,277
|
10.3 %
|
0 ppt
|
1.3 %
|
Jacksonville,
Fla.
|
$1,569
|
1.6 %
|
-0.6 ppt
|
12.2 %
|
Kansas City,
Mo.-Kan.
|
$1,223
|
5.7 %
|
-0.4 ppt
|
3.4 %
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,560
|
-4.3 %
|
-0.2 ppt
|
-3.0 %
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,815
|
-0.8 %
|
-0.5 ppt
|
-1.4 %
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,235
|
7.4 %
|
0.1 ppt
|
NA
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,390
|
2.1 %
|
-0.3 ppt
|
14.6 %
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,391
|
2.4 %
|
-0.9 ppt
|
7.2 %
|
Milwaukee-Waukesha-West
Allis, Wisc.
|
$1,578
|
7.8 %
|
-0.7 ppt
|
NA
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wisc.
|
$1,514
|
2.4 %
|
0.3 ppt
|
5.4 %
|
Nashville-Davidson–Murfreesboro–Franklin,
Tenn.
|
$1,580
|
-0.8 %
|
0 ppt
|
4.1 %
|
New Orleans-Metairie,
La.
|
NA
|
NA
|
-0.4 ppt
|
NA
|
New York-Newark-Jersey
City, N.Y.-N.J.-Penn.
|
$2,994
|
10.2 %
|
-1.2 ppt
|
10.3 %
|
Oklahoma City,
Okla.
|
$993
|
9.2 %
|
0 ppt
|
6.5 %
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,701
|
1.1 %
|
-0.8 ppt
|
13.0 %
|
Philadelphia-Camden-Wilmington,
Penn.-N.J.-Del.-Md.
|
$1,756
|
1.7 %
|
-0.4 ppt
|
5.3 %
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,560
|
-4.7 %
|
-0.4 ppt
|
1.2 %
|
Pittsburgh,
Penn.
|
$1,461
|
8.3 %
|
0 ppt
|
-6.9 %
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,695
|
2.8 %
|
0.7 ppt
|
-1.9 %
|
Providence-Warwick,
R.I.-.Mass.
|
NA
|
NA
|
-0.2 ppt
|
7.6 %
|
Raleigh,
N.C.
|
$1,516
|
-0.9 %
|
0 ppt
|
8.0 %
|
Richmond,
Va.
|
$1,453
|
4.7 %
|
0.2 ppt
|
NA
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,097
|
-5.3 %
|
-0.2 ppt
|
3.0 %
|
Rochester,
N.Y.
|
NA
|
NA
|
-0.4 ppt
|
NA
|
Sacramento–Roseville–Arden-Arcade, Calif.
|
$1,907
|
-2.1 %
|
-0.2 ppt
|
6.0 %
|
St. Louis,
Mo.-Ill.
|
$1,267
|
7.4 %
|
-0.4 ppt
|
3.9 %
|
San Antonio-New
Braunfels, Texas
|
$1,326
|
4.0 %
|
0.3 ppt
|
7.6 %
|
San Diego-Carlsbad,
Calif.
|
$2,839
|
2.0 %
|
-0.4 ppt
|
6.2 %
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,818
|
-0.8 %
|
-0.2 ppt
|
-4.7 %
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,304
|
4.5 %
|
-0.1 ppt
|
0.7 %
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,119
|
0.8 %
|
0 ppt
|
12.4 %
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,765
|
-2.7 %
|
-0.7 ppt
|
14.2 %
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,445
|
5.2 %
|
0.2 ppt
|
13.1 %
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$2,111
|
4.4 %
|
-0.3 ppt
|
6.6 %
|
Methodology
Rental data as of March for studio, 1-bedroom, or 2-bedroom
units advertised as for-rent on Realtor.com®. Rental
units include apartments as well as private rentals (condos,
townhomes, single-family homes). We use rental sources that
reliably report data each month within the top 50 largest
metropolitan areas. Realtor.com® began publishing
regular monthly rental trends reports in October 2020 with data history stretching back to
March 2019.
With the release of its March rent report,
Realtor.com® incorporated a new and improved methodology
for capturing and reporting more comprehensive rental listing
trends and metrics. The new methodology is expected to yield a
cleaner, more representative and more consistent measurement of
rental listings and trends at both the national and local level.
The methodology has been adjusted to better represent the true cost
of primary housing for renters. Most areas across the country will
see minor changes with a smaller handful of areas seeing larger
updates. As a result of these changes, the rental data released
since March 2023 will not be directly
comparable with previous releases and Realtor.com®
economics blog posts. However, future data releases, including
historical data, will consistently apply the new methodology.
About Realtor.com®
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Today, through its website and mobile apps,
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information, visit Realtor.com®.
Media contact: press@realtor.com
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