The majority of renters report that rental costs are their biggest financial strain and barrier to putting aside savings, according to Realtor.com®'s Avail Quarterly Landlord and Renter Survey

SANTA CLARA, Calif., May 19, 2022 /PRNewswire/ -- New data indicates that rental competition remained relentless in April, as the U.S. median rental price hit a new high ($1,827) for the 14th month in a row, according to the Realtor.com® Monthly Rental Report released today. These trends spotlight the affordability struggles reported by renters in Realtor.com®'s Avail Quarterly Landlord and Renter Survey also published today, which found higher rents are increasingly cutting into households' budgets for regular expenses and savings.

"April data illustrates the perfect storm of supply and demand dynamics behind the continued rent surge, from a low number of available rentals to higher for-sale housing costs forcing many would-be buyers to rent for longer than planned," said Realtor.com® Chief Economist Danielle Hale. "Renters are being left with few options but to meet higher rents and, in some cases, even offer above asking – whether they can afford to or not. Avail's new survey shows rents are not only maxing out renters' housing budgets but are the biggest strain on their overall finances, even as inflation drives up expenses across the board. For renters trying to stay on budget, making a list of must-have features is key and using a tool like the Realtor.com® Rentals app can help you find (and stick to) your parameters. This will be especially important as, if recent trends continue, we expect the typical U.S. asking rent to eclipse $2,000 by August."

April 2022 Rental Metrics – National

Unit Size

Median Rent

Change over April 2021

Change over April 2020

Overall

$1,827

16.7%

21.0%

Studio

$1,500

17.2%

15.2%

1-bed

$1,679

15.7%

19.9%

2-bed

$2,062

16.0%

23.8%


April rents maintain record-breaking run, despite annual growth cooling slightly
Realtor.com®'s April data showed national rents maintained their record-breaking run that began in January 2021, despite posting a slightly smaller year-over-year gain than in March. The continued rent surge is attributed to the mismatch between rental supply and rising demand, largely from would-be homebuyers. Some of these aspiring homeowners are staying in the rental market for longer than they may have intended, due to intensifying cost pressures driven by both the longstanding housing supply shortage and more recent inflationary economy. If these trends continue, national asking rents will likely surpass 2022's forecasted year-over-year growth projections (+7.1%) by end of year.

  • The U.S. median rental price hit a new high of $1,827 in April, while the annual growth rate (+16.7%) moderated slightly from the March pace (+17.0%). Still, rents continued to rise at a double-digit annual pace, reaching 21.0% higher than in April 2020 right after the onset of COVID.
  • Studio rents grew at a faster year-over-year pace (+17.2%) than one-bedrooms (+15.6%) and two-bedrooms (+15.9%). This is largely due to the ongoing rental market comeback in major downtowns where smaller living spaces are common, with studio rents up double-digits over April 2021 in all 10 of the biggest tech hubs, led by: New York City (29.1%), Boston (+27.4%) and Austin, Texas (+25.0%).
  • In a potential reflection of shifting migration patterns during the pandemic, the five large markets that posted April's biggest overall rental price gains year-over-year were in the Sun Belt: Miami (+51.6%), Orlando, Fla. (32.9%), Tampa, Fla. (27.8%), San Diego (25.6%) and Las Vegas (24.8%).

Avail survey finds renters are struggling to keep up with rising costs
With rental demand on the rise, landlords with limited available units are able to adjust asking rents on both new and renewing leases to reflect the increasingly competitive market. In fact, the majority of landlords surveyed by Realtor.com®'s Avail reported plans to increase rental prices within the next 12 months. This could mean further rental affordability challenges, with many surveyed renters already feeling the squeeze on their finances and savings, as inflation drives up the cost of everything from rent to regular household expenses.

  • Among renters surveyed in April, 66.1% said higher rents and related household costs are their top cause of financial strain – ahead of other expenses like food and groceries (57.3%) and auto and transportation (50.8%).
  • Higher rents are also limiting renters' ability to save, with more than three-quarters of renters (76.1%) saving less each month than at the same time last year. The typical household surveyed reported being able to save just $50 each month.
  • Of respondents whose rents have gone up on their current unit, 72.9% are considering a move to a more affordable rental. However, lower-cost options are dwindling, with renters who moved in the past year typically paying higher rents ($350) than they did previously. Those who are staying put are trying to cut costs, most commonly on entertainment (67.1%) and food and groceries (62.3%).
  • Additionally, trends among surveyed landlords indicate that renters aren't likely to see relief any time soon. Nearly three-quarters of landlords (72.1%) plan to raise the rent of at least one property this year, up from 65.1% in the January survey.

"Our survey data underscores how renters and landlords alike are feeling the squeeze of inflation and higher costs. For renters in particular, many may understandably feel caught between a rock and a hard place, but remember that there are resources that can help. Doing your research can go a long way in helping you prepare to navigate rent increases and their impact on your family's finances," said Ryan Coon, Avail co-founder and VP of Rentals at Realtor.com®.

Renters grappling with higher costs can access free financial counseling through the Renter Advantage program, a collaboration between Realtor.com®'s Avail, the National Foundation for Credit Counseling, the Housing Partnership Network, and Wells Fargo. Learn more here.

April 2022 Rental Metrics – 50 Largest U.S. Metro Areas

Metro 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.

$1,829

16.7%

$1,665

17.9%

$1,700

17.4%

$2,035

17.7%

Austin-Round Rock, Texas

$1,800

24.7%

$1,450

25.0%

$1,652

26.7%

$1,951

18.5%

Baltimore-Columbia-Towson, Md.

$1,800

12.5%

$1,485

12.5%

$1,701

12.1%

$1,900

11.0%

Birmingham-Hoover, Ala.

$1,189

7.8%

$1,073

11.7%

$1,120

7.2%

$1,283

8.3%

Boston-Cambridge-Newton, Mass.-N.H.

$2,825

22.7%

$2,400

27.4%

$2,600

18.3%

$3,190

23.9%

Buffalo-Cheektowaga-Niagara Falls, N.Y.

$1,290

7.5%

$1,125

2.7%

$1,125

3.0%

$1,445

7.8%

Charlotte-Concord-Gastonia, N.C.-S.C.

$1,675

19.5%

$1,563

21.8%

$1,588

21.3%

$1,840

17.3%

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

$1,923

13.5%

$1,580

21.5%

$1,880

13.9%

$2,160

9.6%

Cincinnati, Ohio-Ky.-Ind.

$1,416

8.9%

$1,200

13.2%

$1,360

8.8%

$1,576

8.4%

Cleveland-Elyria, Ohio

$1,409

10.7%

$950

4.4%

$1,319

6.2%

$1,540

14.1%

Columbus, Ohio

$1,275

11.1%

$1,095

10.1%

$1,200

11.9%

$1,390

9.4%

Dallas-Fort Worth-Arlington, Texas

$1,655

21.3%

$1,375

18.5%

$1,508

22.4%

$1,918

20.3%

Denver-Aurora-Lakewood, Colo.

$1,970

15.3%

$1,600

14.7%

$1,848

16.0%

$2,331

16.3%

Detroit-Warren-Dearborn, Mich.

$1,385

4.5%

$1,074

7.9%

$1,165

6.4%

$1,545

4.6%

Hartford-West Hartford-East Hartford, Conn.

$1,626

7.5%

$1,497

32.5%

$1,440

2.9%

$1,955

11.7%

Houston-The Woodlands-Sugar Land, Texas

$1,435

13.1%

$1,344

11.6%

$1,310

13.4%

$1,609

12.7%

Indianapolis-Carmel-Anderson, Ind.

$1,237

8.9%

$1,050

8.4%

$1,130

8.2%

$1,374

10.9%

Jacksonville, Fla.

$1,600

23.3%

$1,430

42.3%

$1,484

20.8%

$1,757

24.4%

Kansas City, Mo.-Kan.

$1,233

10.6%

$1,014

9.1%

$1,115

13.0%

$1,465

11.3%

Las Vegas-Henderson-Paradise, Nev.

$1,649

24.8%

$1,315

13.4%

$1,519

25.5%

$1,750

22.3%

Los Angeles-Long Beach-Anaheim, Calif.

$3,016

20.9%

$2,279

23.2%

$2,767

23.9%

$3,445

18.2%

Louisville/Jefferson County, Ky.-Ind.

$1,204

13.6%

$1,005

12.0%

$1,135

12.9%

$1,359

8.6%

Memphis, Tenn.-Miss.-Ark.

$1,409

22.0%

$1,139

10.6%

$1,362

21.2%

$1,561

22.6%

Miami-Fort Lauderdale-West Palm Beach, Fla.

$3,045

53.9%

$2,500

46.0%

$2,659

51.9%

$3,500

54.3%

Milwaukee-Waukesha-West Allis, Wis.

$1,525

9.3%

$1,200

6.2%

$1,428

9.8%

$1,750

10.7%

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

$1,580

5.5%

$1,245

4.2%

$1,495

5.5%

$1,925

4.4%

Nashville-Davidson--Murfreesboro--Franklin, Tenn.

$1,760

24.2%

$1,749

22.7%

$1,618

20.3%

$1,914

26.9%

New Orleans-Metairie, La.

$1,798

12.4%

$1,300

28.4%

$1,590

6.3%

$2,020

7.8%

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

$2,845

18.0%

$2,581

29.1%

$2,573

12.2%

$3,166

13.1%

Oklahoma City, Okla.

$985

13.0%

$913

30.6%

$916

14.6%

$1,050

11.2%

Orlando-Kissimmee-Sanford, Fla.

$1,927

32.9%

$1,630

23.7%

$1,772

30.9%

$2,190

36.9%

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

$1,775

7.6%

$1,413

2.0%

$1,679

4.1%

$1,975

6.1%

Phoenix-Mesa-Scottsdale, Ariz.

$1,915

20.1%

$1,429

20.4%

$1,650

20.7%

$2,225

14.7%

Pittsburgh, Pa.

$1,475

4.2%

$1,261

12.4%

$1,450

5.7%

$1,592

-2.0%

Portland-Vancouver-Hillsboro, Ore.-Wash.

$1,764

12.1%

$1,400

9.8%

$1,710

11.2%

$2,049

11.8%

Providence-Warwick, R.I.-Mass.

$2,200

25.4%

$1,468

4.9%

$1,765

13.5%

$2,575

29.9%

Raleigh, N.C.

$1,615

23.9%

$1,458

22.1%

$1,485

24.5%

$1,791

21.3%

Richmond, Va.

$1,435

17.0%

$1,147

15.0%

$1,305

18.1%

$1,559

16.4%

Riverside-San Bernardino-Ontario, Calif.

$2,729

12.3%

$1,400

-6.7%

$2,184

14.5%

$3,000

13.3%

Rochester, N.Y.

$1,320

9.5%

$980

8.6%

$1,265

13.6%

$1,405

7.7%

Sacramento--Roseville--Arden-Arcade, Calif.

$2,045

10.1%

$1,845

11.5%

$1,901

7.6%

$2,230

10.9%

San Antonio-New Braunfels, Texas

$1,385

19.4%

$1,242

16.4%

$1,264

20.1%

$1,599

21.0%

San Diego-Carlsbad, Calif.

$3,125

25.6%

$2,447

23.1%

$2,769

22.5%

$3,500

23.5%

San Francisco-Oakland-Hayward, Calif.

$3,000

11.1%

$2,350

15.6%

$2,750

11.4%

$3,500

9.5%

San Jose-Sunnyvale-Santa Clara, Calif.

$3,165

19.9%

$2,490

23.9%

$2,920

18.8%

$3,545

18.2%

Seattle-Tacoma-Bellevue, Wash.

$2,165

17.2%

$1,799

23.4%

$2,145

16.2%

$2,633

18.4%

St. Louis, Mo.-Ill.

$1,331

8.7%

$1,000

6.1%

$1,272

10.8%

$1,462

6.1%

Tampa-St. Petersburg-Clearwater, Fla.

$2,163

27.8%

$1,989

28.0%

$1,896

28.0%

$2,390

26.6%

Virginia Beach-Norfolk-Newport News, Va.-N.C.

$1,531

13.4%

$1,343

10.6%

$1,436

10.6%

$1,669

12.8%

Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.

$2,115

12.4%

$1,722

14.1%

$2,017

12.2%

$2,499

10.6%


Methodology

Realtor.com® Monthly Rental Trends: Data as of April 2022 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, defined by the Core-Based Statistical Area (CBSA). Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019.

Note: With the release of its February 2022 Rental Report, Realtor.com® incorporated a new and improved methodology (see details here). As a result of these changes, the rental data released since March 2022 will not be directly comparable with prior publications. However, future releases, including historical data, will consistently apply the new methodology.

Realtor.com®'s Avail Quarterly Landlord and Renter Survey: Survey responses collected from a nationally representative sample of more than 2,400 independent landlords and their renters. The survey was conducted between April 21st, 2022 and May 2nd, 2022. The margin of error for landlords is ± 2.9%, and ± 2.7% for renters.

About Realtor.com®
Realtor.com® 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 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. 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. For more information, visit Realtor.com®.

Media Contact
rachel.conner@move.com 

 

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SOURCE Realtor.com

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