Press release
Realtor.com® July Rental Report: A Rising Number of Rentals Drives Down Rent Prices for Third Straight Month
Rents for studio units saw their first year-over-year decline since 2020 SANTA CLARA, Calif., Aug. 21, 2023 /PRNewswire/ -- The Realtor.com® July Rental
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[{"type":"text","content":"Rents for studio units saw their first year-over-year decline since 2020 \nSANTA CLARA, Calif., Aug. 21, 2023 /PRNewswire/ -- The Realtor.com® July Rental Report revealed a third consecutive month of better news for renters in many parts of the country, with a continued decline in year-over-year rent prices for 0-2 bedroom properties, down -1.0% from July 2022, driven in part by a rising rental supply.\nThe median asking rent in the 50 largest metros increased $15 to $1,759 from June to July 2023, but remains down $18 from the peak 12 months ago. July also marks the first year-over-year decrease in rent for studio units since 2020, continuing the downward trend led by two-bedroom units in May and one-bedroom units in June.\n\"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.\"\nJuly 2023 Rental Metrics by Unit Size – National\nUnit Size\nMedian Rent\nRent YoY\nRent Change – July 2019\nOverall\n$1,759\n-1.0 %\n24.7 %\nStudio\n$1,445\n-0.4 %\n18.0 %\n1-bed\n$1,642\n-0.6 %\n24.9 %\n2-bed\n$1,948\n-1.1 %\n26.9 %\n \nAffordability 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,...