According to a recent report from Realtor.com, the median asking rent for 0-2 bedroom apartments nationwide has decreased by -0.7% year-over-year in April 2023, reaching $1,723. This marks the ninth consecutive year of rent declines; however, the rate of decline has slowed down. Currently, rents are only $33 (-1.9%) lower than their peak in August 2022.
Among major cities across the country, Austin has experienced the largest drop in rents since its peak in September 2022 with a decrease of $195 (-11.5%), bringing it down to $1,494 currently due to an increase in new apartment developments and higher vacancy rates. Las Vegas follows closely behind with an -11.% decline from its peak and San Francisco ranks third with a drop of 9.% since July 2022.
On the other hand,rents are on an upward trend in certain parts of Midwest such as Indianapolis (up by4 .5% annually), Milwaukee (up by3 .8%),and Minneapolis (up by2 .5%). These cities have seen their highest median asking rents since March2019due to low unemployment rates and slow paceof new apartment construction.
Realtor.com’s chief economist Danielle Hale states that rental trends vary greatly depending on location withinthe ever-changing real estate market.”Renters may find lower prices comparedto previous peaksin historically expensive areas while more affordable markets continue seeing rising rental costs,” she adds.”This trend could potentially expand into more markets later this summer.”
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