July Rental Report: Year-Over-Year Rent Prices Drop for Third Consecutive Month

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The July Rental Report by Realtor.com® revealed declining rent prices for 0-2 bedroom properties, driven by increased rental supply. While median rent in the 50 largest metros saw a slight increase from June to July, it remains lower than the peak of 12 months ago. This downward trend, especially for studio units, is providing renters with some relief amid ongoing affordability concerns and rising inflation. According to Realtor.com’s Chief Economist, Danielle Hale, the forecast predicts continued downward pressure on rent prices due to increased construction and higher vacancy rates. A new peak rent in 2023 is highly unlikely.

“Renters in many areas are now spending slightly less on rent relative to their overall income, giving their budgets a little more breathing room at a time of stubborn inflation and ongoing affordability concerns,” said Danielle Hale, Chief Economist at Realtor.com®. “With our midyear forecast update noting a surge in multi-family construction and an uptick in vacancy rates, we anticipate this downward pressure on rent prices will continue, providing many renters with much-needed stability in their housing expenses. Given the current rental market momentum and seasonal trends, it will be very unlikely to see a new peak rent in 2023.”

July 2023 Rental Metrics by Unit Size – National

Unit Size

Median Rent

Rent YoY

Rent Change – July 2019

Overall

$1,759

-1.0 %

24.7 %

Studio

$1,445

-0.4 %

18.0 %

1-bed

$1,642

-0.6 %

24.9 %

2-bed

$1,948

-1.1 %

26.9 %

Affordability advancing slowly, supported by new supply

In July 2023, nationwide rent was slightly more affordable than July of the previous year. To be considered affordable, one rule of thumb is that housing costs should fall below 30% of gross household income. In July 2023, people earning the typical household income and looking to rent would be spending 25.9% of their earnings to lease a typical for-rent home, down from 26.5% in July 2022. This positive change can be attributed to a combination of declining median rents and rising median household income. Additionally, increased supply is boosting vacancy rates and helping drive down rents. However, vacancy rates still remain below pre-pandemic levels, rent prices are elevated overall, and affordability continues to be a significant issue. Renters in eight of the top 50 metros, for example, pay a rent share higher than 30% relative to the median household income.

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Middle America remains an affordable oasis between costly coastal locations, for now

The least affordable markets in July 2023 include coastal and Sun Belt locations, where renters often spent more than 30% of the median household income on housing costs. Miami, Fla., was by far the least affordable rental market, followed by Los AngelesSan DiegoNew York CityBostonRiverside, Calif.Tampa, Fla., and Orlando, Fla. In three of these eight cities, affordability has worsened compared with last year. In Miami, for example, renters would have spent 44.2% of their monthly paycheck on the typical rental in July 2023. Conversely, Oklahoma City was the most affordable rental market in July 2023, with renters spending 18.4% of their median household income on housing. Other affordable rental markets include midwestern mainstays such as Columbus, OhioMinneapolis, Minn.Cincinnati; and Kansas City, Kan.

South and West affordability improves, Midwest rents rise

While rents in the South and West remain high, these areas show improved affordability, following a consistent downward rental cost trend during the preceding months. The most significant improvement was Riverside, Calif., where renters with a typical household income would spend 33.9% of their monthly paycheck on the typical rental in July 2023; while higher than the 30% affordability threshold, this represents a decline of 3.4 percentage points compared with 12 months ago. Meanwhile, strong demand in Midwest markets such as MilwaukeeWaukesha, Wis.Birmingham, Ala.; and Indianapolis is driving lower vacancy rates and faster rent growth, eroding affordability in more traditionally budget-friendly locations.

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“As renters determine their next move, whether it’s to stay put, save up to buy a home, or move and rent in a new location, the rental landscape is showing signs of improvement,” said Jiayi Xu, Economist at Realtor.com®. “To determine if renting remains the right choice for your household, free, trusted tools like our Rent Vs. Buy Calculator or our most affordable markets research can help renters make more informed housing decisions.”

Rental Data – 50 Largest Metropolitan Areas – July 2023

Metro

Median
Rent (0-2
Bedrooms)

YOY (0-2
Bedrooms)

July 2023 Rent
Share of Income

July 2022 Rent
Share of Income

Atlanta-Sandy Springs-Roswell, GA

1,687 -4.5 % 24.8 % 26.7 %
Austin-Round Rock, TX 1,725 -7.9 % 22.8 % 24.7 %
Baltimore-Columbia-Towson, MD 1,855 2.1 % 23.8 % 24.0 %
Birmingham-Hoover, AL 1,297 3.9 % 23.7 % 22.9 %
Boston-Cambridge-Newton, MA-NH 3,135 4.7 % 35.4 % 34.6 %
Buffalo-Cheektowaga-Niagara Falls, NY NA NA NA NA
Charlotte-Concord-Gastonia, NC-SC 1,601 -4.5 % 25.9 % 27.5 %
Chicago-Naperville-Elgin, IL-IN-WI 1,764 -0.9 % 25.4 % 25.6 %
Cincinnati, OH-KY-IN 1,251 5.2 % 19.7 % 19.3 %
Cleveland-Elyria, OH 1,254 0.6 % 23.9 % 23.7 %
Columbus, OH 1,204 2.3 % 18.7 % 19.0 %
Dallas-Fort Worth-Arlington, TX 1,546 -5.6 % 22.7 % 24.2 %
Denver-Aurora-Lakewood, CO 1,977 -2.0 % 24.5 % 25.3 %
Detroit-Warren-Dearborn, MI 1,351 3.0 % 23.0 % 22.5 %
Hartford-West Hartford-East Hartford, CT NA NA NA NA
Houston-The Woodlands-Sugar Land, TX 1,432 1.2 % 23.1 % 22.7 %
Indianapolis-Carmel-Anderson, IN 1,329 4.3 % 22.2 % 21.5 %
Jacksonville, FL 1,541 0.9 % 25.3 % 25.2 %
Kansas City, MO-KS 1,309 1.3 % 20.3 % 20.4 %
Las Vegas-Henderson-Paradise, NV 1,530 -4.9 % 26.8 % 27.6 %
Los Angeles-Long Beach-Anaheim, CA 2,822 -3.1 % 39.1 % 40.3 %
Louisville/Jefferson County, KY-IN 1,204 3.6 % 21.1 % 20.7 %
Memphis, TN-MS-AR 1,333 -0.9 % 25.3 % 26.5 %
Miami-Fort Lauderdale-West Palm Beach, FL 2,455 -1.2 % 44.2 % 44.0 %
Milwaukee-Waukesha-West Allis, WI 1,618 6.8 % 26.8 % 25.2 %
Minneapolis-St. Paul-Bloomington, MN-WI 1,490 0.9 % 19.1 % 19.2 %
Nashville-Davidson–Murfreesboro–Franklin, TN 1,666 -1.4 % 25.7 % 25.9 %
New Orleans-Metairie, LA NA NA NA NA
New York-Newark-Jersey City, NY-NJ-PA 2,859 5.7 % 37.0 % 35.0 %
Oklahoma City, OK 1,032 4.0 % 18.4 % 17.8 %
Orlando-Kissimmee-Sanford, FL 1,781 -5.2 % 31.3 % 32.6 %
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 1,777 1.9 % 25.7 % 25.6 %
Phoenix-Mesa-Scottsdale, AZ 1,600 -4.6 % 24.5 % 26.4 %
Pittsburgh, PA 1,478 1.1 % 25.3 % 25.0 %
Portland-Vancouver-Hillsboro, OR-WA 1,703 -4.2 % 23.1 % 24.3 %
Providence-Warwick, RI-MA NA NA NA NA
Raleigh, NC 1,578 -4.8 % 21.5 % 22.5 %
Richmond, VA 1,493 5.8 % 22.8 % 22.5 %
Riverside-San Bernardino-Ontario, CA 2,240 -7.8 % 33.9 % 37.3 %
Rochester, NY NA NA NA NA
Sacramento–Roseville–Arden-Arcade, CA 1,905 -3.7 % 26.6 % 27.9 %
San Antonio-New Braunfels, TX 1,298 -1.7 % 22.6 % 22.9 %
San Diego-Carlsbad, CA 3,045 -0.6 % 39.1 % 39.3 %
San Francisco-Oakland-Hayward, CA 2,966 -4.3 % 27.8 % 29.2 %
San Jose-Sunnyvale-Santa Clara, CA 3,338 -0.8 % 27.0 % 27.9 %
Seattle-Tacoma-Bellevue, WA 2,100 -3.7 % 23.7 % 24.9 %
St. Louis, MO-IL 1,336 3.5 % 21.2 % 21.0 %
Tampa-St. Petersburg-Clearwater, FL 1,834 -3.8 % 33.7 % 35.1 %
Virginia Beach-Norfolk-Newport News, VA-NC 1,388 -3.9 % 21.5 % 23.1 %
Washington-Arlington-Alexandria,DC-VA-MD-WV

2,231

2.1 %

22.7 %

22.7 %

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Methodology 
Rental data as of July 2023 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). Realtor.com® uses rental sources that reliably report data each month within the top 50 largest metropolitan areas. Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.

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