In December 2023, U.S. median rental prices fell for all 0- to 2-bedroom properties, with rents slightly below their 2022 peak, according to Realtor.com's year-end report.
Median rent prices in December fell 0.4% year over year in the 50 largest metropolitan areas for the eighth consecutive month, the report shows, although the rate was slower than the 0.6% drop in November. Ta.
Since November, the median suggested rent is $1,713, down $4 and $63 (-3.5%) below the previous peak in July 2022. This cost is $309 (-3.5%) higher than it was in December 2019, just three months before the coronavirus pandemic began.
The 2023 rental market saw a notable shift in momentum, with a record amount of new multifamily construction driving a price decline in median asking rents. As a result, sales decreased for eight consecutive months compared to the same month last year. There was no new peak in rent prices.
Realtor.com expects the rental market to remain depressed through 2024.
Main highlights:
- December 2023 will be the eighth month of year-on-year rent declines, especially for properties with 0-2 bedrooms. Proposed rental prices decreased by $7 (-0.4%) year over year.
- The median proposed rent in the 50 metro areas fell to $1,713, down $4 from November and $63 from the July 2022 peak.
- Median rents decreased across all size categories.
- Studio: $1,437, down $14 (-1%) YoY in 6th month
- 1 bed: $1,593, down $12 (-0.7%) year over year in 7th month
- 2 Bed: $1,896, down $7 (-0.4%) YoY, 8th month
Main points:
“The rental market improved in 2023. The influx of new multifamily housing into the market put downward price pressure on median asking rents, resulting in eight consecutive months of year-on-year changes in prices as we close out 2023. '' said Daniel Hale, chief economist at realtor.com®. “While inflation and costs have been high, rental price softening throughout 2023 has provided renters with some respite, and Realtor.com® continues to predict that the supply of high-demand apartments will continue to increase. We predict that the rental market will remain depressed in 2024 as this continues,” further impacting market dynamics. ”
Click here to see the full report here.
