Press release
Realtor.com® May Rental Report: Sky High U.S. Rents Surpass Pre-COVID Levels by More than 25%
National rents grew at a double-digit annual pace (+15.5%) for the 10th straight month in May, but by the smallest amount since fall 2021 – hinting at
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[{"type":"text","content":"National rents grew at a double-digit annual pace (+15.5%) for the 10th straight month in May, but by the smallest amount since fall 2021 – hinting at potential relief to come later this year\nSANTA CLARA, Calif., June 22, 2022 /PRNewswire/ -- The U.S. median rental price hit its latest new high of $1,849 per month in May, representing a 26.6% increase since 2019 before the pandemic began, according to the Realtor.com® Monthly Rental Report released today. While May marked the 10th straight month of double-digit annual growth in national rents, the increase was the smallest since September 2021, offering renters a glimpse of a light at the end of the tunnel.\n\"There's no question that renters are facing sky high prices. And with rising inflation reflecting price jumps for both rents and everyday expenses, many renters are feeling the strain on their finances,\" said Realtor.com® Chief Economist Danielle Hale. \"Still, our May data suggests that the rent surge is beginning to lose some steam, in part because incomes can't keep up, even in the strong job market. Although rent growth remains historically high, the rate has been gradually cooling since January, pulling back from 2021's feverish pace. In a bit of good news for renters, the deceleration picked up in May which means if these trends continue, last month's prediction of rents surpassing $2,000 sometime this summer is going to take longer to materialize.\"\nMay 2022 Rental Metrics – National\nUnit Size\nMedian Rent\nChange over May 2021\nChange over May 2020\nOverall\n$1,849\n15.5 %\n23.2 %\nStudio\n$1,530\n16.9 %\n18.8 %\n1-bed\n$1,708\n15.2 %\n22.5 %\n2-bed\n$2,076\n14.8 %\n25.5 %\n \nNational rents maintain double-digit growth, but cool slightly from 2021's record pace\nFor Americans looking for available rental units within their budgets, May trends offer bittersweet news. On one hand, national rents posted the smallest year-over-year gain (+15.5%) since September 2021, moderating from their January peak (+17.3%) for the fourth consecutive month. As a result, rents took a step back from their previous projection of surpassing $2,000 by as early as this summer. In fact, if rent growth continues cooling, typical asking rents may not reach that milestone until next year. Additionally, with the for-sale housing supply recovery forecasted to accelerate in the second half ...