Median asking rent fell -0.7% in May, with
declines across all unit sizes and pockets of increases in certain
Midwest and Northeast markets
SANTA
CLARA, Calif., June 11,
2024 /PRNewswire/ -- Rents dropped in May for the
tenth consecutive month, though the pace of the decline has slowed
since earlier this year, suggesting potential challenges for
further reductions in overall inflation, according to the
Realtor.com® Rental Report released today. This could
potentially complicate the Fed's policy decisions and also
underscores the need for more housing construction, particularly in
some markets where a lack of rental supply is contributing to
higher prices.
The median asking rent nationally for 0-2 bedroom units fell by
-0.7% ($13) from May of last year to
$1,732, and declined across all size
categories. That's just $24 (-1.4%)
below its August 2022 peak. Median
asking rents have risen by 21.5% over the past five years.
"Slowing rent growth preceded slower shelter inflation, and
falling market rents – as we've seen in the last 10 months of
Realtor.com® data – have furthered that deceleration in
shelter prices," said Danielle Hale,
Chief Economist at Realtor.com®. "As a significant
driver of overall inflation, shelter costs need to slow further and
are expected to do so. However, waning market rent declines
foreshadow smaller Consumer Price Index shelter declines ahead and
put a question mark on whether we've seen enough to rein in overall
inflation, complicating the Fed's policymaking."
CPI shelter index is "stickier"
Shelter costs have
been a big driver of overall consumer cost increases. The Consumer
Price Index for shelter, which includes rent of primary residence
and the owners' equivalent rent of residences, was up 5.5% year
over year in April after rising 5.7% in March, and is down from a
peak of 8.2% in March 2023. That
government index typically lags behind market-based rent measures,
like Realtor.com rent data, but recently that gap has widened,
creating a "stickier" shelter index. It's expected to drop further,
but the pace of that decline has slowed since February, making it
potentially more difficult for the overall inflation picture to
improve. For renters, an uptick in housing construction to
alleviate short supplies could help lower costs.
Rents drop in South and West, increase in Midwest and
Northeast
The biggest year-over-year declines in median
asking rent were seen in the South, led by Austin (-9.3%), Nashville (-8.3%) and San Antonio (-8.2%). There were also declines
in the West, led by Phoenix
(-4.5%), San Francisco (-4.3%) and
Las Vegas (-4.1%). In other
markets, strong labor markets stoked demand while the increase in
supply of new units didn't keep pace, pushing up rents. In the
Midwest, rents rose in markets including Indianapolis (+4.4%), Milwaukee (+4.3%) and Minneapolis (+2.9%). In the Northeast,
Pittsburgh (+2.4%) and
New York (+2.2%) were among the
markets showing an increase.
Rents decline across all size categories
Median rents
for units of all sizes continued to fall in May. The median asking
rent for studios nationwide fell by -1.9% on a year-over-year
basis, to $1,449. That's down -2.8%
from the October 2022 peak but 17.3%
higher than five years ago. Median rent for one-bedroom units fell
-1.1%, the twelfth year-over-year decline in a row, to $1,612, which is still 20.3% higher than five
years ago. And the median rent for two-bedroom units fell by -0.7%,
the same rate of decline as last month, to $1,925. That was also the twelfth consecutive
annual drop. Still, while two-bedroom rents were -1.4% below their
August 2022 peak, they have risen by
23.3% over the past five years, a higher growth rate than seen in
smaller units.
National Rental Data –
May 2024
Unit
Size
|
Median
Rent
|
Rent
YoY
|
Rent Change – 5
years
|
Overall
|
$1,732
|
-0.7 %
|
21.5 %
|
Studio
|
$1,449
|
-1.9 %
|
17.3 %
|
1-bed
|
$1,612
|
-1.1 %
|
20.3 %
|
2-bed
|
$1,925
|
-0.7 %
|
23.3 %
|
Rental Data – 50 Largest Metropolitan Areas – May 2024
Metro
|
Median Rent (0-2
Bedrooms)
|
YOY (0-2
Bedrooms)
|
Atlanta-Sandy
Springs-Alpharetta, GA
|
$1,600
|
-5.8 %
|
Austin-Round Rock,
TX
|
$1,484
|
-9.3 %
|
Baltimore-Columbia-Towson, MD
|
$1,769
|
-5.5 %
|
Birmingham-Hoover,
AL
|
$1,308
|
1.6 %
|
Boston-Cambridge-Newton, MA-NH
|
$2,950
|
-1.5 %
|
Buffalo-Cheektowaga,
NY
|
NA
|
NA
|
Charlotte-Concord-Gastonia, NC-SC
|
$1,523
|
-5.0 %
|
Chicago-Naperville-Elgin, IL-IN-WI
|
$1,839
|
0.7 %
|
Cincinnati,
OH-KY-IN
|
$1,367
|
1.9 %
|
Cleveland-Elyria,
OH
|
$1,224
|
2.7 %
|
Columbus, OH
|
$1,184
|
-2.3 %
|
Dallas-Fort
Worth-Arlington, TX
|
$1,485
|
-3.7 %
|
Denver-Aurora-Lakewood,
CO
|
$1,928
|
-0.7 %
|
Detroit-Warren-Dearborn, MI
|
$1,301
|
0.5 %
|
Hartford-West
Hartford-East Hartford, CT
|
NA
|
NA
|
Houston-The
Woodlands-Sugar Land, TX
|
$1,385
|
-3.2 %
|
Indianapolis-Carmel-Anderson, IN
|
$1,342
|
4.4 %
|
Jacksonville,
FL
|
$1,534
|
-4.1 %
|
Kansas City,
MO-KS
|
$1,310
|
-2.5 %
|
Las
Vegas-Henderson-Paradise, NV
|
$1,475
|
-4.1 %
|
Los Angeles-Long
Beach-Anaheim, CA
|
$2,775
|
-2.5 %
|
Louisville/Jefferson
County, KY-IN
|
$1,236
|
-2.5 %
|
Memphis,
TN-MS-AR
|
$1,224
|
-3.8 %
|
Miami-Fort
Lauderdale-West Palm Beach, FL
|
$2,393
|
-4.4 %
|
Milwaukee-Waukesha,
WI
|
$1,690
|
4.3 %
|
Minneapolis-St.
Paul-Bloomington, MN-WI
|
$1,533
|
2.9 %
|
Nashville-Davidson–Murfreesboro–Franklin,
TN
|
$1,517
|
-8.3 %
|
New Orleans-Metairie,
LA
|
NA
|
NA
|
New York-Newark-Jersey
City, NY-NJ-PA
|
$2,857
|
2.2 %
|
Oklahoma City,
OK
|
$1,009
|
0.0 %
|
Orlando-Kissimmee-Sanford, FL
|
$1,672
|
-6.4 %
|
Philadelphia-Camden-Wilmington,
PA-NJ-DE-MD
|
$1,800
|
-0.4 %
|
Phoenix-Mesa-Scottsdale, AZ
|
$1,538
|
-4.5 %
|
Pittsburgh,
PA
|
$1,484
|
2.4 %
|
Portland-Vancouver-Hillsboro, OR-WA
|
$1,729
|
2.7 %
|
Providence-Warwick,RI-MA
|
NA
|
NA
|
Raleigh, NC
|
$1,528
|
-3.4 %
|
Richmond, VA
|
$1,487
|
-3.3 %
|
Riverside-San
Bernardino-Ontario, CA
|
$2,153
|
-1.7 %
|
Rochester,
NY
|
NA
|
NA
|
Sacramento-Roseville-Folsom, CA
|
$1,982
|
4.8 %
|
San Antonio-New
Braunfels, TX
|
$1,232
|
-8.2 %
|
San Diego-Chula
Vista-Carlsbad, CA
|
$2,886
|
-1.8 %
|
San
Francisco-Oakland-Berkeley, CA
|
$2,779
|
-4.3 %
|
San
Jose-Sunnyvale-Santa Clara, CA
|
$3,341
|
3.7 %
|
Seattle-Tacoma-Bellevue, WA
|
$2,042
|
1.0 %
|
St. Louis,
MO-IL
|
$1,330
|
-1.8 %
|
Tampa-St.
Petersburg-Clearwater, FL
|
$1,742
|
-2.8 %
|
Virginia
Beach-Norfolk-Newport News, VA-NC
|
$1,533
|
3.2 %
|
Washington-Arlington-Alexandria,DC-VA-MD-WV
|
$2,256
|
1.5 %
|
Methodology
Rental data as of May 2024 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.
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Media Contact: Sara Wiskerchen,
press@realtor.com
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SOURCE Realtor.com