Press release
Realtor.com® June Rental Report: Rent Prices Continue Downward Trend
Rent for one-bedroom units saw first year-over-year decline since 2020 SANTA CLARA, Calif., July 25, 2023 /PRNewswire/ -- The Realtor.com® June Rental Report
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[{"type":"text","content":"Rent for one-bedroom units saw first year-over-year decline since 2020\nSANTA CLARA, Calif., July 25, 2023 /PRNewswire/ -- The Realtor.com® June Rental Report found that relief for renters continues, as rent prices dropped even further, down 1.0% year over year. While the median asking rent in the 50 largest metros increased to $1,745, up by $7 from last month, it was down $31 from its July 2022 peak.\n\"The downward trend in rent prices continued in June, providing a much-needed respite for renters and an opportunity to regain some control over their housing expenses,\" said Realtor.com Chief Economist Danielle Hale. \"With our midyear forecast update calling for slowing inflation, better-than-expected labor market performance, and an increase in multi-family supply, we're seeing some encouraging signs for renters' budgets as we enter the second half of the year.\"\nJune marks the first year-over-year decrease in rent for one-bedroom units since 2020, mirroring the first such drop in rent for two-bedroom units in May.\nWhile continuing rent price declines are helping to improve affordability, it's important to note that rents remain significantly elevated: 24.1% higher than the same time in 2019. Rents for studios, for example, also continue to grow. The median rent of studios was $1,445, up by $14 (1.0%) year-over-year and $229 (18.8%) higher than four years ago.\nJune 2023 Rental Metrics by Unit Size – National\nUnit Size\nMedian Rent\nRent YoY\nRent Change – June 2019\nOverall\n$1,745\n-1.0 %\n+24.1 %\nStudio\n$1,445\n+1.0 %\n+18.8 %\n1-bed\n$1,630\n-0.7 %\n+24.5 %\n2-bed\n$1,945\n-1.0 %\n+27.0 %\nWestern rents drop further as San Jose experiences first declineRent in Western metros continues to decline faster than other parts of the country (-3.8% Y/Y). San Jose, the last large western metro to show a decline in rental prices, saw its first year-over-year rent drop in nearly two years (-1.4%). In contrast, rents in northeastern hubs such as New York City (+4.7%) and Boston (+2.5%) continued to climb more quickly. The strong labor market in the Northeast is likely driving demand, although increasing supply may help ease the upward pressure on rent prices. Rents in the Midwest are still climbing (+3.2%), due to greater affordability in the region. Of the Top 10 metros experiencing the most rent growth, half are located in the...