Pace of Rent Declines Is Slowing
In June 2024, rents for larger units had their highest growth rate in five years, up by $363 (23%)
A new report on housing rent by Realtor.com shows that in June median asking rents for 0-2 bedroom units in the top 50 U.S. metros rose 21.2% compared to the same period in 2019 – even though rents on a national basis slipped in June for the 11th month in a row.
Among the top 10 markets with the highest percentage increase in rents compared to the pre-pandemic period, Tampa led with a $496 hike (39%) to reach $1,752 in June 2024. For households, this meant an additional 8.6% bite of typical monthly gross income.
Other metros with rent growth above 30% in the period June 2019 to June 2024 were Miami, Indianapolis, Pittsburgh, Sacramento, Virginia Beach, New York, and Cleveland, OH. Meanwhile, Raleigh and Birmingham joined the top 10 with rent growth of 29%. Rents for larger units had their highest growth rate in five years, up by $363 (23%).
In June 2024, rents in the top 50 metros dipped $7 (0.4%) compared to June 2023. Rents fell in all size categories, especially for smaller units. The median rent for a studio was $1,463, down $18 (1.2%) – but still higher than five years ago. For a one-bedroom the drop was $1,618 down $18 (1.1%) and for a two-bedroom $1,939 down $6 (0.3%).
Despite the 11-month slump, the report noted that the pace of rent declines is slowing across all unit sizes. The slump was worst in the South, falling 9.5% in Austin, 8.2% in San Antonio, and 8.1% in Nashville, all of which have seen supply rise significantly. Rents also fell in Western metros like Los Angeles and San Francisco. In the Midwest, rents grew led by Indianapolis, Milwaukee and Minneapolis.