The median asking rent nationally in April for 0-2 bedroom units declined year-over-year by 0.7% to $1,723, according to new data from Realtor.com. This marked the ninth consecutive year-over-year drop, with declines recorded in all size categories of rental housing. However, the pace of rent declines has decelerated and rents remain only $33 (-1.9%) below their August 2022 peak.
Renters in some major South and West metro markets enjoyed the greatest savings, most notably in Austin where the median asking rent of $1,494 was down $195 (-11.5%) from its September 2022 peak – Realtor.com attributed this to the increase of new multifamily properties in the Texas capital. Nonetheless, April’s median asking rent in Austin is $260 higher (21.1%) than it was in pre-pandemic 2019.
In comparison, parts of the Midwest saw rent hikes, with the median asking rents reaching their highest levels since March 2019 in Indianapolis (up 4.5% annually to $1,334), Milwaukee (up 3.8% to $1,671), and Minneapolis (up 2.5% to $1,529). This was attributed to below-average unemployment rates and a slower pace of new multifamily construction.
“In the ever-fluctuating real estate market, renters will find that trends vary significantly by location,” said Danielle Hale, chief economist at Realtor.com. “Renters in some historically expensive areas are seeing lower prices compared to what they would have paid at the peak of the market, while many relatively affordable markets are witnessing a continued rise in rental costs to new highs, and the scales could tip to even more markets later this summer.”
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