Median US rental price grew 12.3% year-over-year to a record US$1,879 in July; rent growth slightly faster in urban areas, up 12.8% to median price of US$1,927.5 compared to an increase of 11.7% to US$1,821 in suburban areas: Realtor.com

Sample article from our Housing & Economy

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
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.

  • In July, the U.S. median rental price hit its latest new high ($1,879), but only increased by $3 over June as rent growth year-over-year (+12.3%) continued moderating to its slowest pace since August 2021 (+11.5%).
  • Overall rents posted low double-digit gains over July 2021 levels across all unit sizes in July: Studios, up 14.3% to $1,555; one-bedrooms, up 12.2% to $1,745; and two-bedrooms, up 11.7% to $2,103.
  • Among the 50 largest metros in July, rental prices grew most quickly year-over-year in the south and northeast, led by Miami for the 10th straight month (+26.2%). Rounding out July's five fastest-growing rental markets were New York (+25.4%), Boston (+24.8%), Chicago (+20.6%) and Orlando, Fla. (+20.4%).
  • In four out of these five markets, urban rents grew at a faster yearly pace than suburban rents, most significantly in New York (+25.4 percentage points) and followed by Chicago (+15.7), Boston (+11.6) and Miami (+6.2); the growth rates were roughly even in Orlando (+19.5% vs. +20.3%).
  • Nationally, July rent growth year-over-year was slightly faster in urban areas, up 12.8% to a median $1,927.5, than in suburban areas, up 11.7% to a median $1,821. This is a marked reversal from earlier in the pandemic in January 2021, when urban rent was falling by 2.5% while suburban rent was growing by 3.9%. Despite the recent resurgence in big city rents, shifts during COVID significantly shrank the gap between urban and suburban rents from July 2019-2022 – by 52.9% or $68 per month.

Avail survey finds renters still face rent hikes, but landlords may be relenting
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. 

  • Among renters surveyed in July who have been in their current unit for 1-2 years, 52.4% have experienced a rent increase, by a median $160 per month (+13%). Of these renters, 77.1% are considering a move to a more affordable rental.
  • However, whether in the rental or for-sale market, those looking for lower housing costs may not find much luck. Renters who moved within the past year reported 27% higher rents (+$300) than in their prior residence. Of renters planning to purchase a home, 72.7% are considering putting plans on pause in light of higher costs.
  • More than half (60%) of renters reported that higher rents and household expenses are their biggest cause of financial strain, down from the April rate (66.1%). Additionally, a typical renter reported being able to put twice as much of their monthly take-home toward savings in July ($100) compared to April ($50).
  • Findings from July's survey of landlords offer further potential signs that the worst of rental cost pressures may be behind renters. Although 72.1% of landlords reported plans to raise rents within the next year, the rate held steady over the previous quarter after jumping substantially from January (65.1%) to April (72.1%).
  • When asked why they plan on raising rents, landlords cited higher costs for property management expenses, including tax payments (79.1%), maintenance and upkeep (75%) and utilities (45.9%). In the face of these cost pressures, the share of landlords who plan to buy new properties declined significantly in July (23.4%) from January (37.5%).

"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
Median
Rent

Overall
Rent YY

Studio
Median
Rent

Studio
Rent YY

1-br
Median
Rent

1-br
Rent YY

2-br
Median
Rent

2-br
Rent YY

Atlanta-Sandy Springs-Roswell, Ga.

$1,859

7.5 %

$1,739

13.7 %

$1,726

7.9 %

$2,063

4.5 %

Austin-Round Rock, Texas

$1,853

14.6 %

$1,555

17.8 %

$1,719

17.9 %

$2,053

13.0 %

Baltimore-Columbia-Towson, Md.

$1,821

8.7 %

$1,451

5.8 %

$1,731

8.9 %

$1,935

9.3 %

Birmingham-Hoover, Ala.

$1,295

12.1 %

$989

-10.1 %

$1,241

15.7 %

$1,348

10.0 %

Boston-Cambridge-Newton, Mass.-N.H.

$2,995

24.8 %

$2,591

31.2 %

$2,782

21.0 %

$3,325

27.9 %

Buffalo-Cheektowaga-Niagara Falls, N.Y.

$1,340

6.3 %

$1,125

2.7 %

$1,230

10.8 %

$1,480

5.3 %

Charlotte-Concord-Gastonia, N.C.-S.C.

$1,755

14.9 %

$1,631

19.0 %

$1,669

16.4 %

$1,855

8.8 %

Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.

$2,045

20.6 %

$1,750

46.4 %

$2,000

22.3 %

$2,249

18.4 %

Cincinnati, Ohio-Ky.-Ind.

$1,513

10.8 %

$1,205

10.0 %

$1,450

11.4 %

$1,660

5.7 %

Cleveland-Elyria, Ohio

$1,430

13.9 %

$1,000

14.3 %

$1,319

9.9 %

$1,555

12.7 %

Columbus, Ohio

$1,312

9.3 %

$1,095

9.6 %

$1,231

8.6 %

$1,409

8.4 %

Dallas-Fort Worth-Arlington, Texas

$1,703

14.7 %

$1,445

15.6 %

$1,566

16.8 %

$2,008

13.7 %

Denver-Aurora-Lakewood, Colo.

$2,005

6.6 %

$1,669

6.6 %

$1,880

6.7 %

$2,370

7.7 %

Detroit-Warren-Dearborn, Mich.

$1,455

8.4 %

$1,210

20.4 %

$1,255

11.1 %

$1,600

6.7 %

Hartford-West Hartford-East Hartford, Conn.

$1,770

13.8 %

$1,540

28.4 %

$1,615

9.9 %

$2,039

13.3 %

Houston-The Woodlands-Sugar Land, Texas

$1,450

8.2 %

$1,335

2.2 %

$1,335

8.4 %

$1,625

6.6 %

Indianapolis-Carmel-Anderson, Ind.

$1,325

11.4 %

$1,081

12.1 %

$1,235

13.8 %

$1,464

9.7 %

Jacksonville, Fla.

$1,623

11.9 %

$1,199

23.0 %

$1,506

10.0 %

$1,770

12.1 %

Kansas City, Mo.-Kan.

$1,360

11.9 %

$1,030

3.0 %

$1,270

14.9 %

$1,570

13.9 %

Las Vegas-Henderson-Paradise, Nev.

$1,631

8.7 %

$1,250

13.6 %

$1,500

8.3 %

$1,735

7.3 %

Los Angeles-Long Beach-Anaheim, Calif.

$3,047

12.6 %

$2,325

16.3 %

$2,785

12.7 %

$3,512

11.2 %

Louisville/Jefferson County, Ky.-Ind.

$1,250

13.1 %

$1,095

20.3 %

$1,165

9.4 %

$1,429

13.0 %

Memphis, Tenn.-Miss.-Ark.

$1,409

8.5 %

$1,149

4.5 %

$1,369

9.6 %

$1,549

8.8 %

Miami-Fort Lauderdale-West Palm Beach, Fla.

$2,840

26.2 %

$2,479

33.0 %

$2,500

25.0 %

$3,200

28.0 %

Milwaukee-Waukesha-West Allis, Wisc.

$1,588

9.5 %

$1,245

8.3 %

$1,490

10.4 %

$1,814

8.6 %

Minneapolis-St. Paul-Bloomington, Minn.-Wisc.

$1,600

3.3 %

$1,249

2.1 %

$1,506

3.2 %

$1,934

0.5 %

Nashville-Davidson–Murfreesboro–Franklin, Tenn.

$1,777

14.6 %

$1,650

1.2 %

$1,673

14.6 %

$1,915

18.0 %

New Orleans-Metairie, La.

N/A*

New York-Newark-Jersey City, N.Y.-N.J.-Penn.

$3,010

25.4 %

$2,750

31.0 %

$2,710

23.2 %

$3,400

25.0 %

Oklahoma City, Okla.

$1,050

11.8 %

$964

30.3 %

$945

9.2 %

$1,189

17.8 %

Orlando-Kissimmee-Sanford, Fla.

$1,981

20.4 %

$1,746

18.3 %

$1,817

20.7 %

$2,248

19.1 %

Philadelphia-Camden-Wilmington, Penn.-N.J.-Del.-M.D.

$1,835

8.3 %

$1,550

11.9 %

$1,770

8.9 %

$2,000

5.3 %

Phoenix-Mesa-Scottsdale, Ariz.

$1,755

4.8 %

$1,415

8.3 %

$1,609

4.8 %

$1,925

2.6 %

Pittsburgh, Penn.

$1,600

11.4 %

$1,315

7.8 %

$1,625

14.0 %

$1,750

7.7 %

Portland-Vancouver-Hillsboro, Ore.-Wash.

$1,861

9.6 %

$1,490

5.5 %

$1,799

8.4 %

$2,192

9.6 %

Providence-Warwick, R.I.-Mass.

N/A*

Raleigh, N.C.

$1,694

13.3 %

$1,562

15.8 %

$1,575

15.0 %

$1,893

11.2 %

Richmond, Va.

$1,453

11.4 %

$1,200

11.6 %

$1,326

11.7 %

$1,575

11.5 %

Riverside-San Bernardino-Ontario, Calif.

$2,600

4.2 %

$1,800

25.1 %

$2,239

6.5 %

$2,820

3.4 %

Rochester, N.Y.

$1,360

8.4 %

$995

12.4 %

$1,295

11.6 %

$1,465

10.6 %

Sacramento–Roseville–Arden-Arcade, Calif.

$2,083

3.4 %

$1,735

-6.2 %

$1,950

0.9 %

$2,273

3.8 %

San Antonio-New Braunfels, Texas

$1,418

13.4 %

$1,290

10.8 %

$1,304

15.7 %

$1,619

12.0 %

San Diego-Carlsbad, Calif.

$3,195

16.2 %

$2,472

14.9 %

$2,955

17.0 %

$3,566

14.8 %

San Francisco-Oakland-Hayward, Calif.

$3,200

11.9 %

$2,560

13.8 %

$2,952

11.4 %

$3,704

11.4 %

San Jose-Sunnyvale-Santa Clara, Calif.

$3,350

16.2 %

$2,655

14.9 %

$3,100

14.8 %

$3,750

15.9 %

Seattle-Tacoma-Bellevue, Wash.

$2,310

11.9 %

$1,915

14.9 %

$2,293

9.6 %

$2,704

10.8 %

St. Louis, Mo.-Ill.

$1,395

9.0 %

$1,020

6.3 %

$1,300

6.8 %

$1,497

6.9 %

Tampa-St. Petersburg-Clearwater, Fla.

$2,102

9.3 %

$2,025

19.2 %

$1,880

8.0 %

$2,300

6.8 %

Virginia Beach-Norfolk-Newport News, Va.-N.C.

$1,585

7.2 %

$1,400

11.1 %

$1,483

7.2 %

$1,744

7.1 %

Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.

$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
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.

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®
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®.

Media Contact
rachel.conner@move.com 

1 Part of Realtor.com®

 

SOURCE Realtor.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.

See our dashboard in action - schedule an demo
Dan Rivard
Dan Rivard
- VP Market Development -

We offer built-to-order housing & economy coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.