Median rent prices inched down by 0.3% year-over-year in March, according to new data from Realtor.com. This marked the eighth consecutive month of declines in year-over-year prices.
Nonetheless, the median rent of $1,722 was only $36 less than the peak seen in August 2022 and was $313 more than in pre-pandemic March 2019.
Units of all sizes saw median rent declines in March, with studios showing the largest drop (-1.4%) on a year-over-year basis, to $1,435 – although this was the seventh consecutive month of rent declines for studios, the median asking rent is 17.6% higher than pre-pandemic era five years ago. Median asking rents for one-bedroom units declined by -0.1% to $1,602 and rents for two-bedroom units declined by -0.5% to $1,908, the eighth consecutive month of year-over-year decline. Two-bedroom units recorded the highest growth rate over the past five years, up by $372 (24.2%).
Among the major metro areas, the greatest yearly rent price declines were recorded in Austin (-4.70%), Memphis (-4.40%), St. Louis (-4.00%), Atlanta (-3.70%) and Miami-Fort Lauderdale-West Palm Beach market (-3.60%).
“Rising shelter costs have been a major driver of overall inflation, a top concern for the Fed as it meets this week,” said Danielle Hale, Chief Economist at Realtor.com. “There is some good news for renters with prices falling in many parts of the country, especially outside expensive metro markets in the West and Northeast.”
“However,” Hale added, “we expect cost pressures to continue as interest rates remain high and would-be buyers opt to rent instead and keep demand high. New housing construction is needed, especially in major markets in the Northeast and West, to alleviate the home supply shortage. Softer rents in the South are evidence that more supply helps tame rising costs.”
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