Median rents in January were down for the sixth consecutive month, with year-over-year prices dropping by 0.3%, according to the latest Realtor.com Rental Report.
Last month, the median asking rent for 0-2 bedroom units in the 50 largest metros declined to $1,712, down $5 from one year ago and down $46 from the high set in August 2022. However, prices were also 18.3% higher than they were in the pre-pandemic era of four years ago.
The median asking rent for studios fell by 1.0% to $1,434, which is down 3.8% from its October 2022 peak but still 11.9% higher than four years ago. Asking rents for two-bedroom units declined by 0.6% to $1,892; these unites were also up by $321 (20.4%) from four years earlier.
Asking rents for one-bedroom units saw a mild uptick after declining since July 2023, increasing by a scant 0.1% year-over-year to $1,591 in January. Realtor.com attributed this to the perception that one-bedroom units are seen as being more spacious than a studio and more affordable than a two-bedroom unit.
“Rental prices are declining, especially in places where new units are entering the market, but there’s still plenty of demand driven by the large population of renters, including potential first-time homebuyers who remain on the sidelines for now,” said Danielle Hale, chief economist at Realtor.com. “Looking forward, Realtor.com® anticipates the rental market to decline only slightly in 2024, as an increase in the supply of new units is balanced out by continued enthusiasm for renting as a more affordable alternative to purchasing.”
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