Rent Prices Continue Downward Trend

July represented the third consecutive month of year-over-year declines in rental housing prices, according to data from Realtor.com.

While the median asking rent in the 50 largest metros increased $15 to $1,759 from June to July, it nonetheless remains down $18 from the peak 12 months ago. July also marks the first year-over-year decrease in rent for studio units since 2020, continuing the downward trend led by two-bedroom units in May and one-bedroom units in June.

The least affordable markets in July included coastal and Sun Belt locations, where renters often spent more than 30% of the median household income on housing costs. Miami was the least affordable rental market, where renters would have spent 44.2% of their monthly paycheck on the typical rental. On the flip side, Oklahoma City was the most affordable rental market, with renters spending 18.4% of their median household income on housing.

“Renters in many areas are now spending slightly less on rent relative to their overall income, giving their budgets a little more breathing room at a time of stubborn inflation and ongoing affordability concerns,” said Danielle Hale, Chief Economist at Realtor.com. “With our midyear forecast update noting a surge in multi-family construction and an uptick in vacancy rates, we anticipate this downward pressure on rent prices will continue, providing many renters with much-needed stability in their housing expenses. Given the current rental market momentum and seasonal trends, it will be very unlikely to see a new peak rent in 2023.”