Renters Cut Costs Despite 1st Annual Drop in Rents Since Pandemic Began
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Looks like renters in the US can finally breathe a sigh of relief. After the never-ending rollercoaster ride of rising rent prices since the start of the pandemic, rent prices have finally dropped annually for the first time since March 2020. |
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It’s happening: Redfin’s analysis of the 50 largest U.S. metro areas found that the national median rent price dropped to $1,937 in March, a 0.4% YoY decrease, marking the first annual decline since March 2020. Apartment List data also shows that new renters in January paid 3.5% less than those who signed in August, the first time in five years rent has dropped monthly over a six-month period. |
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Asking rent: Despite the recent decline, rents still stand at 19.9% higher than they were before the pandemic. The median asking rent in March remained the same as in February, but wages have also increased at a similar rate during this time. |
Distinct regional differences: Austin and Chicago saw rent declines of 11% and 9%, respectively, while Raleigh, NC and Cleveland had rent increases of nearly 17% and over 15%, according to Redfin’s analysis of the 50 largest US metro areas. Redfin’s chief economist, Daryl Fairweather, attributed the changes to fewer people willing to splurge on rentals. Manhattan remains the priciest rental market, with a median monthly rent of $4,022, while Louisville, KY is the cheapest with a median asking rent of $1,378 per month.
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| ➥ THE TAKEAWAY |
| Big picture: The US rental market is experiencing a decrease in demand due to rising prices and economic uncertainty, while supply is increasing with a record number of new multifamily apartments. However, rents remain high, with a 20% increase compared to pre-pandemic levels and overall inflation affecting price |