Press release
Realtor.com® March Rental Report: California Markets See First Rent Decline in 2 Years
While expensive markets in the West saw declines, prices in the more affordable Midwest continued to rise even faster SANTA CLARA, Calif., April 25, 2023
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[{"type":"text","content":"While expensive markets in the West saw declines, prices in the more affordable Midwest continued to rise even faster\nSANTA CLARA, Calif., April 25, 2023 /PRNewswire/ -- The Realtor.com® March Rental Report found a split in rental price trends, with some of the country's most expensive markets seeing year-over-year price declines, while more affordable markets continued to grow at an even faster pace, as consumers sought affordability after the past several years of quick growth and high rental prices.\n\"Mirroring trends that we've seen in the for-sale market, affordability is shaping housing demand, with lower-cost areas continuing to see stronger rent growth, home price increases, and competitive real estate markets. Markets in the Midwest and Northeast are benefiting from this trend while cities in the West are adjusting in the opposite direction,\" said Realtor.com® Chief Economist Danielle Hale. \"The good news for renters is that overall rent prices and price growth have both cooled from their highs in early 2022, offering some relief for cost-burdened consumers who are facing higher prices across the board.\"\nCalifornia rent prices on the decline; Midwest picking up speed\nIn March, 14 markets saw year-over-year price declines, including San Francisco (-0.8%) and Los Angeles (-0.8%), which saw their first year-over-year declines in 2 years. Riverside-San Bernardino, Calif. (-5.3%) and Sacramento, Calif. (-2.1%) also saw declines in March. These declines could be connected by tech layoffs and a weakening job market in the state.\nOn the flip side, Midwestern markets including Indianapolis, Ind. (10.3%), Cincinnati, Ohio (9.6%), and Milwaukee, Wisc. (7.8%) continued to rise quickly year-over-year. Rent growth rates in Sun Belt markets, which grew very quickly during the pandemic, continued to slow (0.2%), but the median asking rent was still $408 (27.2%) higher than four years ago (pre-pandemic). \nRents up significantly since the pandemic began \nNationally, the U.S. rental market experienced single-digit growth for the eighth month in a row after 14 months of slowing from its high of 16.4% growth in January 2022. The median rent in the 50 largest metros increased to $1,732, up by $15 from last month and down $32 from last year's peak. However, this is still $354 (25.7%) higher than the same time in 2019 before the pand...