The median asking rent for 0-2 bedroom properties in the 50 largest metros was $1,713 in December, according to new data from Realtor.com. This is down by $7 (-0.4%) from December 2022 and down $63 (-3.5%) from its July 2022 peak – although it is also $309 (22%) higher than the same time in pre-pandemic 2019.
Realtor.com noted that regionally rental trends in December continued the patterns seen in October and November – supply exceeded demand and fueled a decrease in rents in the West and South, while markets in the Northeast and Midwest experienced more rental demand compared to supply, resulting in sustained rent growth.
“The rental market took a turn in 2023 as an influx of new multifamily apartments coming to the market exerted downward price pressure on median asking rents, which resulted in eight consecutive months of year-over-year price declines as we closed out the year,” said Danielle Hale, chief economist at Realtor.com. “Amid high inflation and costs, softening rental prices throughout 2023 offered renters a small reprieve, and looking forward, Realtor.com anticipates continued weakness in the rental market for 2024, as a much-needed supply of apartment units continues to come onto the market and further impacts market dynamics.”
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