Rent prices down 0.5% year-over-year, their
first drop since the start of Realtor.com® rental data
trend tracking in 2020
SANTA
CLARA, Calif., June 26,
2023 /PRNewswire/ -- The Realtor.com® May
Rental Report found that renters are beginning to see some relief,
with the median asking monthly rent in the 50 largest U.S. metros
decreasing -0.5% year-over-year to $1,739. Nationally, rent prices increased
$3 from last month, but were down
$38 from the July 2022 peak. Realtor.com®'s 2023
Forecast Update predicts that rents will continue to drop,
averaging -0.9% from 2022.
"In May, we saw the first year-over-year decline in rents, a
sea-change from the double-digit growth that renters contended with
in much of 2021 and 2022. This is yet another sign that
rental-driven inflation is likely behind us, even though we may not
see this trend in official measures until next year," said
Realtor.com® Chief Economist Danielle Hale. "Although still modest, a decline
in rents combined with cooling inflation and a still-strong job
market is definitely welcome news for households."
While rental declines are a positive sign for household
affordability, it is important to note that rents are still
$344 (+24.7%) higher than the same
time in 2019, before the pandemic began.
"Despite the decline in typical asking rents, households who may
not have moved in several years are likely to see their rent
increase if they're looking for a new home," said Hale.
Western markets seeing biggest rent drops
Rent prices
in the expensive West are seeing the largest year-over-year
declines (-3.0%), with the South close behind (-1.0%). More
affordable Midwestern markets continued to increase (4.5%), but at
a much slower pace than in previous months. Rents in the Northeast
have stayed relatively strong, as low unemployment rates and
relatively slow new construction improvements have kept demand high
and supply limited. Densely populated markets like New York City (+6.8%) and Boston (+3.3%) have shown resilience.
Expectations for the second half of 2023
In some good
news for renters, Realtor.com® anticipates that rents
will continue to drop, averaging -0.9% year-over-year in 2023.
Strong multi-family new construction has helped to improve the
availability of units, which is helping to improve prices. This,
combined with a number of renters choosing to stay in their units
longer in order to save money, will help to reduce rental market
competition through the end of the year.
"Looking forward, we expect to see a continued, albeit small,
year-over-year decline in rental prices throughout the remainder of
the year. Renters may find themselves with more bargaining power
and may have better luck finding an affordable unit this year.
Meanwhile, landlords looking for help setting rents in a shifting
market can find tools from Realtor.com®'s Avail," said
Hale.
Rental Data – 50 Largest Metropolitan Areas – May 2023
Metro
|
Median Rent 0-2
bedroom
|
YOY 0-2
bedroom
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,660
|
-3.1 %
|
Austin-Round Rock,
Texas
|
$1,641
|
-5.6 %
|
Baltimore-Columbia-Towson, Md.
|
$1,850
|
2.0 %
|
Birmingham-Hoover,
Ala.
|
$1,261
|
3.1 %
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,832
|
3.3 %
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
NA
|
NA
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,576
|
-3.5 %
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.
|
$1,714
|
-1.0 %
|
Cincinnati,
Ohio-Ky-Ind.
|
$1,218
|
7.5 %
|
Cleveland-Elyria,
Ohio
|
$1,215
|
-1.0 %
|
Columbus,
Ohio
|
$1,329
|
9.3 %
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,542
|
-3.6 %
|
Denver-Aurora-Lakewood,
Colo.
|
$1,969
|
-3.0 %
|
Detroit-Warren-Dearborn, Mich.
|
$1,323
|
5.1 %
|
Hartford-West
Hartford-East Hartford, Conn.
|
NA
|
NA
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,434
|
2.0 %
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,331
|
7.3 %
|
Jacksonville,
Fla.
|
$1,559
|
2.3 %
|
Kansas City,
Mo.-Kan.
|
$1,308
|
3.1 %
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,531
|
-6.0 %
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,833
|
-2.6 %
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,210
|
7.2 %
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,325
|
0.2 %
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,341
|
-2.3 %
|
Milwaukee-Waukesha-West
Allis, Wisc.
|
$1,597
|
6.2 %
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wisc.
|
$1,511
|
1.2 %
|
Nashville-Davidson–Murfreesboro–Franklin,
Tenn.
|
$1,618
|
-0.7 %
|
New Orleans-Metairie,
La.
|
NA
|
NA
|
New York-Newark-Jersey
City, N.Y.-N.J.-Penn.
|
$2,911
|
6.8 %
|
Oklahoma City,
Okla.
|
$997
|
4.6 %
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,769
|
-2.3 %
|
Philadelphia-Camden-Wilmington,
Penn.-N.J.-Del.-Md.
|
$1,823
|
1.3 %
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,663
|
-5.7 %
|
Pittsburgh,
Penn.
|
$1,450
|
3.8 %
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,680
|
-1.3 %
|
Providence-Warwick,
R.I.-Mass.
|
NA
|
NA
|
Raleigh,
N.C.
|
$1,558
|
-2.9 %
|
Richmond,
Va.
|
$1,448
|
4.9 %
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,302
|
-5.9 %
|
Rochester,
N.Y.
|
NA
|
NA
|
Sacramento–Roseville–Arden-Arcade, Calif.
|
$1,847
|
-3.5 %
|
San Antonio-New
Braunfels, Texas
|
$1,276
|
0.2 %
|
San Diego-Carlsbad,
Calif.
|
$2,966
|
-0.6 %
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,844
|
-4.0 %
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,347
|
1.0 %
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,112
|
-1.8 %
|
St. Louis,
Mo.-Ill.
|
$1,327
|
7.7 %
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,793
|
-4.0 %
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,436
|
-1.6 %
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$2,214
|
4.0 %
|
Methodology
Rental data as of May 2023 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 May 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 May 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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Media contact: press@realtor.com
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