SANTA CLARA, CA — Rents declined again last month, offering significant savings for renters in cities like Austin, Las Vegas, and San Francisco, according to the latest Realtor.com Rental Report. However, some areas with low unemployment and slow new home construction saw record-high rents that could rise further this summer.
Nationally, the median asking rent for 0-2 bedroom units fell by -0.7% from April of last year, reaching $1,723. This marks the ninth consecutive year-over-year drop, though the rate of decline has slowed. Rents are now just $33 lower than their August 2022 peak.
“In the ever-fluctuating real estate market, renters will find that trends vary significantly by location,” said Danielle Hale, Chief Economist at Realtor.com. “Renters in some historically expensive areas are seeing lower prices compared to peak rates, while many relatively affordable markets are witnessing continued rent increases.”
Austin Leads in Rent Declines
Austin, Texas, saw the largest percentage decrease among major metro areas. The median asking rent in April was $1,494, down $195 (11.5%) from its September 2022 peak. This decline is partly due to an influx of new multi-family homes, which has increased the rental vacancy rate. Despite this drop, Austin’s rents are still $260 (21.1%) higher than five years ago.
Las Vegas followed, with renters saving $184 on average, a 11.1% decline from its June 2022 high. San Francisco also saw notable savings, with typical rents falling $303 per month, a 9.9% decrease from the July 2022 peak.
Midwest Cities Hit Record-High Rents
Conversely, some Midwest cities experienced rising rents. Indianapolis saw rents increase by 4.5% annually to $1,334, Milwaukee rose by 3.8% to $1,671, and Minneapolis went up 2.5% to $1,529. These increases are driven by low unemployment and sluggish new home construction.
Cincinnati, Cleveland, and Chicago also have rents slightly below their peaks but may set new records this summer if trends continue. While rents in these Midwest cities are generally more affordable compared to other regions, rising costs are creating new affordability challenges.
Downward Trend Across All Unit Sizes
Rents for all unit sizes continued to decline in April. Studio apartments saw the biggest drop, with the median asking rent falling 1.7% year-over-year to $1,443. One-bedroom units fell by 1.4% to $1,601, marking the eleventh straight month of declines. Two-bedroom units dropped by 0.7% to $1,916, 1.9% lower than their August 2022 peak but 24.4% higher than five years ago.
As rental trends continue to shift, renters in various markets face contrasting realities—some enjoy lower prices, while others grapple with rising costs.
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