January marked the first month since July 2020 when rental growth didn't slow—a continuation of recent trends showing the multifamily asset class is stabilizing. 

According to new realtor.com research, the US median rent across the largest 50 metros in the country was up 0.8% in January to $1,442, below the pre-pandemic growth rate of 3.2%. The report also shows that like homeowners, renters are increasingly favoring smaller, less expensive markets with strong schools and local economies over pricier tech hubs. That trend, in turn is causing rents in many of the markets where home prices are soaring to increase as well. 

New Orleans, Sacramento, Rochester, Cleveland, Riverside, Cincinnati and St. Louis all logged some of the largest rent increases last month, and they're also among metros where home prices increased by more than 5% year-over-year.  And thanks to more flexible WFH and remote work policies coast to coast, an ever-growing cadre of renters are looking for more affordable places to live: according to a MyMove report late last year, as of November more than 16 million Americans left major metros, thanks in large part to the pandemic.