SANTA CLARA, California
,
August 24, 2022
(press release)
–
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 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. "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." July 2022 Rental Metrics – National Unit Size Median Rent Change over July 2021 Change over July 2020 Overall $1,879 12.3 % 23.2 % Studio $1,555 14.3 % 20.2 % 1-bed $1,745 12.2 % 22.9 % 2-bed $2,103 11.7 % 23.7 % National rents remain historically-high, across both urban and suburban areas Avail survey finds renters still face rent hikes, but landlords may be relenting "Like renters, landlords are feeling financial pains from the inflationary economy. To help offset these higher costs while maintaining local ownership of rentals, our survey suggests that many landlords are making the difficult decision to raise rents. We're also beginning to see that landlords are less interested in growing their portfolios as they were in the past surveys," said Ryan Coon, Avail co-founder and VP of Rentals at Realtor.com®. "It's important to remember that affordability remains a challenge for many renters. Those who are looking for support can access resources like free financial counseling through Avail's integration with the NFCC Renter Advantage program." July 2022 Rental Metrics – 50 Largest U.S. Metro Areas Metro Overall Overall Studio Studio 1-br 1-br 2-br 2-br $1,859 7.5 % $1,739 13.7 % $1,726 7.9 % $2,063 4.5 % $1,853 14.6 % $1,555 17.8 % $1,719 17.9 % $2,053 13.0 % $1,821 8.7 % $1,451 5.8 % $1,731 8.9 % $1,935 9.3 % $1,295 12.1 % $989 -10.1 % $1,241 15.7 % $1,348 10.0 % $2,995 24.8 % $2,591 31.2 % $2,782 21.0 % $3,325 27.9 % $1,340 6.3 % $1,125 2.7 % $1,230 10.8 % $1,480 5.3 % $1,755 14.9 % $1,631 19.0 % $1,669 16.4 % $1,855 8.8 % $2,045 20.6 % $1,750 46.4 % $2,000 22.3 % $2,249 18.4 % $1,513 10.8 % $1,205 10.0 % $1,450 11.4 % $1,660 5.7 % $1,430 13.9 % $1,000 14.3 % $1,319 9.9 % $1,555 12.7 % $1,312 9.3 % $1,095 9.6 % $1,231 8.6 % $1,409 8.4 % $1,703 14.7 % $1,445 15.6 % $1,566 16.8 % $2,008 13.7 % $2,005 6.6 % $1,669 6.6 % $1,880 6.7 % $2,370 7.7 % $1,455 8.4 % $1,210 20.4 % $1,255 11.1 % $1,600 6.7 % $1,770 13.8 % $1,540 28.4 % $1,615 9.9 % $2,039 13.3 % $1,450 8.2 % $1,335 2.2 % $1,335 8.4 % $1,625 6.6 % $1,325 11.4 % $1,081 12.1 % $1,235 13.8 % $1,464 9.7 % $1,623 11.9 % $1,199 23.0 % $1,506 10.0 % $1,770 12.1 % $1,360 11.9 % $1,030 3.0 % $1,270 14.9 % $1,570 13.9 % $1,631 8.7 % $1,250 13.6 % $1,500 8.3 % $1,735 7.3 % $3,047 12.6 % $2,325 16.3 % $2,785 12.7 % $3,512 11.2 % $1,250 13.1 % $1,095 20.3 % $1,165 9.4 % $1,429 13.0 % $1,409 8.5 % $1,149 4.5 % $1,369 9.6 % $1,549 8.8 % $2,840 26.2 % $2,479 33.0 % $2,500 25.0 % $3,200 28.0 % $1,588 9.5 % $1,245 8.3 % $1,490 10.4 % $1,814 8.6 % $1,600 3.3 % $1,249 2.1 % $1,506 3.2 % $1,934 0.5 % $1,777 14.6 % $1,650 1.2 % $1,673 14.6 % $1,915 18.0 % N/A* $3,010 25.4 % $2,750 31.0 % $2,710 23.2 % $3,400 25.0 % $1,050 11.8 % $964 30.3 % $945 9.2 % $1,189 17.8 % $1,981 20.4 % $1,746 18.3 % $1,817 20.7 % $2,248 19.1 % $1,835 8.3 % $1,550 11.9 % $1,770 8.9 % $2,000 5.3 % $1,755 4.8 % $1,415 8.3 % $1,609 4.8 % $1,925 2.6 % $1,600 11.4 % $1,315 7.8 % $1,625 14.0 % $1,750 7.7 % $1,861 9.6 % $1,490 5.5 % $1,799 8.4 % $2,192 9.6 % N/A* $1,694 13.3 % $1,562 15.8 % $1,575 15.0 % $1,893 11.2 % $1,453 11.4 % $1,200 11.6 % $1,326 11.7 % $1,575 11.5 % $2,600 4.2 % $1,800 25.1 % $2,239 6.5 % $2,820 3.4 % $1,360 8.4 % $995 12.4 % $1,295 11.6 % $1,465 10.6 % $2,083 3.4 % $1,735 -6.2 % $1,950 0.9 % $2,273 3.8 % $1,418 13.4 % $1,290 10.8 % $1,304 15.7 % $1,619 12.0 % $3,195 16.2 % $2,472 14.9 % $2,955 17.0 % $3,566 14.8 % $3,200 11.9 % $2,560 13.8 % $2,952 11.4 % $3,704 11.4 % $3,350 16.2 % $2,655 14.9 % $3,100 14.8 % $3,750 15.9 % $2,310 11.9 % $1,915 14.9 % $2,293 9.6 % $2,704 10.8 % $1,395 9.0 % $1,020 6.3 % $1,300 6.8 % $1,497 6.9 % $2,102 9.3 % $2,025 19.2 % $1,880 8.0 % $2,300 6.8 % $1,585 7.2 % $1,400 11.1 % $1,483 7.2 % $1,744 7.1 % $2,208 10.4 % $1,774 8.8 % $2,090 10.0 % $2,581 8.0 % *New Orleans and Providence, R.I. excluded while rental data is under review. Methodology Urban vs. Suburban Analysis: Suburban and Urban distinctions were made by classifying zip codes within each metro by percentiles of population density within the metro. Rental listings are assigned a classification based on their zip code and then aggregated by classification and metropolitan area for analysis. Avail Quarterly Landlord and Renter Survey: Survey responses collected from a nationally representative sample of more than 2,600 renters and independent landlords. The survey was conducted between July 21st, 2022, and July 29th, 2022. The margin of error for landlords is ± 2.7%, and ± 2.6% for renters. Avail, which has been a part of Realtor.com® since December 2020, is a platform that improves the renting experience for do-it-yourself landlords and tenants with online tools, educational content and world-class support. About Realtor.com® Media Contact 1 Part of Realtor.com® SOURCE Realtor.com
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 horizon as builders pick-up construction of apartments. On the other hand, renters continued to grapple with affordability challenges in July, driven by still-low vacancy rates that kept rents high and inflation (8.5%) that outpaced wage growth (+5.2%). Additionally, comparing today's rental trends to the 2019 market highlights how renters now face higher costs in a greater variety of areas, as renting in the suburbs no longer offers as much of an affordability advantage over big cities as it once did. While the rise in remote work and migration away from downtown areas gave suburban rents room to catch-up to urban rents earlier in the pandemic, the return to downtown life and offices is now driving an especially strong resurgence in big city rents.
Findings from the latest Avail1 Quarterly Landlord and Renter Survey underscore that rental affordability challenges are everywhere. Whether renewing an existing lease or moving to a new unit, the majority of surveyed renters experienced a rent hike over the past year, with new rentals proving costlier. At the same time, plans reported by landlords suggest that an end to the relentless rent surge may be in sight. Although the majority do expect to increase rents on at least one property, quarter-over-quarter trends indicate landlords are recognizing that renters are reaching their financial limits and beginning to adjust their business approaches accordingly.
Median
Rent
Rent YY
Median
Rent
Rent YY
Median
Rent
Rent YY
Median
Rent
Rent YY
Rental data as of July 2022 for units advertised as for-rent on Realtor.com®. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, defined by the Core-Based Statistical Area (CBSA). Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019.
Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
rachel.conner@move.com
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.
