Residential Rent Prices Continue to Decline for 11th Consecutive Month, with Southern Markets Seeing Largest Drops
According to a recent report from Realtor.com, residential rent prices have once again fallen in June. The South has been hit the hardest by this trend due to an increase in new rental units. The median asking rent for 0-2 bedroom units has decreased by -0.4% ($7) compared to last year, now at $1,743 and marking the 11th straight month of declines. This is also -0.6% ($11) lower than its peak in August of 2022.
Despite these overall decreases, some markets have seen significant increases since pre-pandemic levels in 2019 – particularly those located in the South as well according to Realtor.com’s analysis . Leading this surge is Tampa-St.Petersburg-Clearwater metro area with a whopping increase of +39.5%, followed closely 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%).
Realtor.com’s chief economist Danielle Hale stated that while rents have been consistently declining over almost a year now ,the pace has slowed down recently . However ,rental costs are still significantly higher compared to before the pandemic which combined with inflation poses financial strain on renters’ budgets . This highlights the urgent need for more supply of rental properties that can meet demand and prevent renters from spending an increasing portion of their income on housing expenses.
Realtor.com conducts analysis on various types of rentals including apartments,single-family homes,and townhomes.
