Rising Number of Rentals Drives Down Rent PricesBy Claudia Larsen Rent prices continued to decrease year-over-year for the third straight month, according to a new report from Realtor.com. Realtor.com’s rental report for July found that the median asking rent in the 50 largest metros increased $15 to $1,759, but remains down $18 from the peak 12 months ago. The July data also marks the first year-over-year decrease in rent for studio units since 2020, continuing the downward trend led by two-bedroom units in May and one-bedroom units in June. Breaking down the different units, studio rents dropped 0.4% to $1,445, one bedroom rents dropped 0.6% to $1,642, and two bedroom rents dropped 1.1% to $1,948. Key highlights:
Major takeaway: “Renters in many areas are now spending slightly less on rent relative to their overall income, giving their budgets a little more breathing room at a time of stubborn inflation and ongoing affordability concerns,” said Realtor.com Chief Economist Danielle Hale. “With our midyear forecast update noting a surge in multi-family construction and an uptick in vacancy rates, we anticipate this downward pressure on rent prices will continue, providing many renters with much-needed stability in their housing expenses. Given the current rental market momentum and seasonal trends, it will be very unlikely to see a new peak rent in 2023.” Realtor.com Economist Jiayi Xu added, “As renters determine their next move, whether it’s to stay put, save up to buy a home, or move and rent in a new location, the rental landscape is showing signs of improvement. To determine if renting remains the right choice for your household, free, trusted tools like our Rent Vs. Buy Calculator or our most affordable markets research can help renters make more informed housing decisions.” For the full report, visit https://www.realtor.com/research/july-2023-rent/. Claudia Larsen is an associate editor for RISMedia. |
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