Although you almost certainly should not be holding your breath for significantly more cost-effective rents in 2023, here’s a glimmer of excellent news: Some relief from unrelenting price increases is well underway.
It still costs renters 20% more to take out a brand new lease than it did three years ago, in keeping with a report from the actual estate listing site Redfin. But data shows rents continued cooling into December after many consecutive months of double-digit year-over-year increases, even in a few of the hottest markets.
While that doesn’t mean renters should expect killer deals to surface in the brand new 12 months, this month marked the smallest year-over-year increase in median asking rents (5%) since July 2021.
Economists at one other listing site, Realtor.com, say that although they expect rental prices to proceed climbing nationally, the trend of double-digit hikes is probably going over. As of November, rentals in nine of the 50 largest cities within the U.S. have posted year-over-year declines, particularly within the Sun Belt, West and South.
December also brought in regards to the seventh straight month of slowed rent growth, in keeping with Redfin. Rents dropped 1.4% from November and three.6% from their peak in August, when the national median asking rent was $2,053. Redfin’s latest rental market report puts the present U.S. median asking rent at $1,979.
These are the nine U.S. metros where rent prices are down in comparison with December 2021, in keeping with Realtor.com.
- Riverside, California
Median rent as of November: $2,071
Yr-over-year change: -5.5% - Las Vegas, Nevada
Median rent: $1,481
Yr-over-year rent change: -4.9% - Sacramento, California
Median rent: $1,838
Yr-over-year rent change: -4.8% - Recent Orleans, Louisiana
Median rent: $1,371
Yr-over-year rent change: -2.8% - Phoenix, Arizona
Median rent: $1,600
Yr-over-year rent change: -2% - Atlanta, Georgia
Median rent: $1,689
Yr-over-year rent change: -1.8% - Tampa, Florida
Median rent: $1,783
Yr-over-year rent change: -1.8% - Jacksonville, Florida
Median rent: $1,454
Yr-over-year rent change: -0.8% - Austin, Texas
Median rent: $1,656
Yr-over-year rent change: -0.6%
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