Press release
Realtor.com® July Rental Report: Renting in the Suburbs Isn't as Cheap as It Used to Be
On average, renters saw a $160/month increase in rent when renewing leases this year and a $300/month increase when signing a new lease, according to
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[{"type":"text","content":"On average, renters saw a $160/month increase in rent when renewing leases this year and a $300/month increase when signing a new lease, according to Realtor.com®'s Avail Quarterly Landlord and Renter Survey\nSANTA CLARA, Calif., Aug. 24, 2022 /PRNewswire/ -- Driven by migration away from expensive city centers during the pandemic, the rental price advantage of living in the suburbs (vs. urban areas) has shrunk by 52.9% compared to three years ago, according to the Realtor.com® Monthly Rental Report released today. As the U.S. median rental price hit its latest all-time high in July ($1,879), a new survey from Avail (part of Realtor.com®) found that moving to a new rental has been costlier for renters, but there may be market cooling on the horizon as landlords adjust to renter budgets impacted by inflation.\n\"Whether in a downtown area or suburb, staying put or making a change, renters are stuck between a rock and a hard place when it comes to affordability. Compared to three years ago when rental price premiums were typically concentrated in urban hubs, renting is now nearly as expensive in the suburbs, where the rise in remote work has driven a surge in demand,\" said Realtor.com® Chief Economist Danielle Hale. \"At the same time, the days of smaller premiums for downtown rentals are numbered, as a return to in-office work and city life is sparking a relative uptick in urban rent growth. Put simply, renters are feeling it everywhere, but there may be some relief ahead. Survey findings suggest that landlords are adjusting their approaches to renters' tightening budgets, while July data shows rent growth is leveling off at a relatively cooler pace than in 2021.\"\nJuly 2022 Rental Metrics – National\nUnit Size\nMedian Rent\nChange over July 2021\nChange over July 2020\nOverall\n$1,879\n12.3 %\n23.2 %\nStudio\n$1,555\n14.3 %\n20.2 %\n1-bed\n$1,745\n12.2 %\n22.9 %\n2-bed\n$2,103\n11.7 %\n23.7 %\nNational rents remain historically-high, across both urban and suburban areas National rents reached a new high for the 17th month in a row in July, even as rent growth further moderated. So far this year, annual rent gains have been consistently getting smaller month-to-month, indicating a shift toward a more sustainable balance of rental supply and demand. On the one hand, this offers encouraging signs of relief, with more on the horiz...