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Residential Rents Post 11th Consecutive Monthly Decline
Rents for residential units fell again in June, with especially large declines in the South, where there’s been an influx of new rental units, Realtor.com said Thursday. The median asking rent for 0-2 bedroom units fell -0.4% ($7) from last June to $1,743, marking the 11th consecutive month of declines and -0.6% ($11) below its August 2022 peak.
Still, some markets have seen rents surge by as much as 40% compared to 2019’s pre-pandemic levels, including some in the South, according to the Realtor.com report. Leading the way is the Tampa-St. Petersburg-Clearwater metro area, up 39.5%; followed by Miami (+39.2%); Indianapolis (+37.5); Pittsburgh (+37.4%); Sacramento (+35.8%); Virginia Beach-Norfolk-Newport News (+32.5%); New York-Newark-Jersey City (+31.3%); Cleveland (+30.6%); Raleigh-Cary (29.8%); and Birmingham (+29.3%).
“Rents have been steadily falling for almost a year, though the pace of the decline has slowed,” said Danielle Hale, chief economist at Realtor.com. “But rental costs have risen significantly since before the pandemic and inflation has further strained renters’ budgets, underscoring the need for more supply to meet demand and to keep renters from contributing an increasing percentage of their incomes to housing costs.”
Realtor.com analyzes rents for apartments as well as single-family, condominium and townhome rentals.
- ◦Lease
- ◦Economy
