Rent Prices on the Rise: Despite 11 Months of Declines, Renters Pay $305 More Than in 2019
[Image of Daniel Hale, Realtor.com Chief Economist]
The typical renter is paying $305 more monthly for an apartment compared to 2019, despite 11 months of consecutive declines in median asking rent. According to Realtor.com’s latest market report, the median asking rent in June 2024 declined 0.4% year-over-year to $1,743 per month, the lowest median asking rent seen since August 2022.
Rental Costs Rise Significantly Since Pre-Pandemic Era
"Rents have been steadily falling for almost a year, though the pace of the decline has slowed," said Realtor.com Chief Economist Danielle Hale. "But rental costs have risen significantly since before the pandemic, and inflation has further strained renters’ budgets, underscoring the need for more supply to meet demand and to keep renters from contributing an increasing percentage of their incomes to housing costs."
Florida and Midwest Experience Greatest Rent Increases
Florida renters have experienced the most significant rise in housing costs, with Tampa-St. Petersburg-Clearwater, Florida (+39.5% and Miami-Fort Lauderdale-Pompano Beach, Florida (+39.2%) posting double-digit median rent growth since 2019.
Top 10 Markets with Highest Rent Increases Since 2019
- Tampa-St. Petersburg-Clearwater, Florida (+39.5%)
- Miami-Fort Lauderdale-Pompano Beach, Florida (+39.2%)
- Indianapolis-Carmel-Anderson, Indiana (+37.5%)
- Pittsburgh (+37.4%)
- Sacramento-Roseville-Folsom, California (+35.8%)
- Virginia Beach-Norfolk-Newport News, Virginia, North Carolina (+32.5%)
- New York-Newark-Jersey City, New York, New Jersey, Pennsylvania (+31.3%)
- Cleveland-Elyria, Ohio (+30.6%)
- Raleigh-Cary, North Carolina (29.8%)
- Birmingham-Hoover, Alabama (+29.3%)
Rent Trends in Other Regions
The most notable year-over-year declines were all in the South, with Austin, Texas (-9.5%), San Antonio, Texas (-8.2%), and Nashville, Tennessee (-8.1%) leading the way in median rent declines, thanks to robust multifamily building trends.
Rent trends were a mixed bag for the West and East Coasts, with Los Angeles (-1.9%) and San Francisco (-4.2%) experiencing slight annual declines and New York City (+0.6%) experiencing an edge up in rents after considerable declines earlier in the pandemic.
Rents rose in the Midwest, with Indianapolis (+4.4%), Milwaukee (+3.7%), and Minneapolis (+3.7%) leading the way.
Conclusion
In conclusion, despite 11 months of consecutive declines in median asking rent, renters are still paying $305 more monthly for an apartment compared to 2019. The greatest rent increases are in Florida and the Midwest, with Tampa-St. Petersburg-Clearwater, Florida and Miami-Fort Lauderdale-Pompano Beach, Florida posting double-digit median rent growth since 2019.
FAQs
Q: What is the current median asking rent in the United States?
A: The current median asking rent in the United States is $1,743 per month.
Q: How much more are renters paying monthly compared to 2019?
A: Renters are paying $305 more monthly compared to 2019.
Q: Which regions have experienced the greatest rent increases?
A: Florida and the Midwest have experienced the greatest rent increases, with Tampa-St. Petersburg-Clearwater, Florida and Miami-Fort Lauderdale-Pompano Beach, Florida posting double-digit median rent growth since 2019.
Q: What is the most notable trend in rent prices in the United States?
A: The most notable trend is that despite 11 months of consecutive declines in median asking rent, renters are still paying more than they did in 2019.
Author: www.inman.com
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