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HomeBusinessOctober Rent Report: Rent prices fall for third straight month

October Rent Report: Rent prices fall for third straight month

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  • October 2022 marks the ninth month of slowing rental growth and the third month in a row of single-digit growth rates (4.7% yoy) for 0-2 bedroom properties.
  • Median rent for the 50 largest metros The figure fell to $1,734, down $25 from the previous month and $47 below its peak in July. The Avail, by Realtor.com® The Fall 2022 Landlord and Tenant Survey shows that most tenants have accepted recent rent increases, neither negotiating smaller rent increases nor moving to new units, which contributes to affordability.

      Sun Belt subway rents slow to 1.8% yes/yes. New Orleans, LA (-3.7%), Phoenix, AZ (-1.6%), Atlanta, GA (-0.8%) and Memphis, TN (-0.7%) experienced their first negative year-over-year changes since the outbreak of COVID-19 19 pandemic.

        The rent of a single room ushers in the first Single-digit 14-month growth rate. Rent by square footage: Studio: $1,457, up 6.7% ($92); 1 bedroom: $1,611, up 4.5% ($69); 2 bedroom: $1,901, up 3.7% ($67). Survey results show that most Landlords still plan to increase rents over the next 12 months, but the magnitude of planned increases has declined.

          Recent rent increases, inflation and Rising interest rates are affecting renters’ plans to purchase a home, with many reporting they will delay buying and continue renting out for now.

        Year by year Ninth Consecutive Month of Rent Growth Decline

          October 2022 , the U.S. rental market posted single-digit growth for the third straight month after a nine-month slowdown from a peak of 17.4% growth in January. Median rent growth for 0-2 bedroom properties in the top 50 metros slowed to 4.7% YoY. That’s the slowest growth rate in 18 months, but still nearly 1.5 times faster than the pre-pandemic growth rate in March 2020. The median asking rent was $1,734, down $25 from last month and $47 from the peak.

          from The recent deceleration from the highs is consistent with what we saw in the recent pending sales data , suggest that the more typical seasonal cooling is returning to the rental market. Leasing demand typically slows during late fall and early winter as fewer households move. Additionally, mortgage rates for a typical 30-year fixed-rate loan hover at 7% and inflation Homebuilding activity hits 40-year high Continues to lean toward multifamily properties . This has increased the supply of rental properties, shifting the market balance and helping to moderate rental growth. In fact, the recent rise in rental vacancy rates is additional evidence that demand is not outpacing rental supply as it has been over the past 18 months.

          picture One: Year-on-year trend of rent

          Despite cooling rents, renters are still under financial stress

      Despite cooling rent, the Avail, presented by Realtor.com®, 2022 The Fall Landlord and Tenant Survey found that most renters have already absorbed the recent rent increases. Three-quarters (74.2%) of renters who moved in the past 12 months said their rent had increased.

      Recently The pressure from rising rents is not limited to renters who have recently moved. Nearly two-thirds (63.2%) of tenants who have lived in their current lease for 12 to 24 months with a possible renewal also reported a rent increase. The percentage of tenants experiencing rent increases rose significantly compared to July, when 52.2% reported rent increases. The median monthly rent for those renewing tenants rose $138, down from $160 in July.

      although Rents have risen recently, but few renters reported trying to negotiate lower rent increases with their landlords, and even fewer successfully negotiated. About a third of surveyed tenants (34.7%) attempted to negotiate a lower rent increase when their landlord recently raised it. Of these renters, only 17.3% were able to get a lower increase (6% of all renters).

      many Renters are also considering moving in search of more affordability. Nearly seven in 10 (69.5%) tenants who have experienced recent rent increases are considering moving to more affordable rents, up from 66.2% in July. Those considering moving are looking for a 12.5 percent reduction in costs, or about $200 a month for the median renter — up from 10.3 percent, or about $125, in July. However, renters looking for more affordability by moving may have a hard time finding it. Those who moved within the past 12 months reported median rent increases of $300 per month.

      Sunbelt rents continue to cool down faster

      Renters interested in living in Sunbelt areas may experience a faster market than others cool down the country. According to Realtor.com® , Sunbelt Metro 0-2 bedroom properties will have a YoY growth rate of 1.8% in October 2022, 2.9 percentage points below the national average. Similar to last month’s findings , Subways and negative growth rates are concentrated in the Sun Belt regions. Rents fell year-over-year in October in Riverside, CA (-4.7%), Sacramento, CA (-3.4%), Tampa, FL (-2.5%) and Las Vegas, NV (-2.5%) The basis of the second month. Additionally, New Orleans, LA (-3.7%), Phoenix, AZ (-1.6%), Atlanta, GA (-0.8%) and Memphis, TN (-0.7%) also saw their first year-over-year rent increases since the start of the pandemic annual decline since then. Although the Sunbelt market has cooled faster than the rest of the country in recent months, median rents in the region are still 28.6% higher than three years ago (before the pandemic), higher than the national rent growth for the same three years During the period (23.6%).

      studio rent appeared single digit for the first time 14-month house price increase

        in October, two-bedroom units consecutive The third month maintained single-digit growth. Median rent continues to decline, down $41 from last month and from July peak down $83 . The national two-bedroom median rent was $1,901, up $67 (3.7%) from a year ago and $377 (24.7%) from three years ago.

        one Rent growth for one-bedroom units also continued to cool. The median rent for a one-bedroom unit was $1,611, down $36 from the previous month and $54 from the peak. However, it is still up $69 (4.5%) compared to the previous year and up 23.2% ($303) since October 2019 (before the Covid-19 pandemic).

        October 2022, studio in 14 months. The median rent for a studio was $1,457, down $26 from the previous month and $41 from the peak. Still, it’s up $92 (6.7%) year-over-year and $225 (18.3%) higher than three years ago.

        Table 1: National Unit Area Rent

        unit size Median Rent

        Rent year-on-year RENT VARIATION – 3 YEARS

        comprehensive

        1,734 Dollar4.7%23.5%studio

        $1,4576.7%

        18.3%

        single bed $1,6114.5%

        23.2%

        2 beds

        $1,901

        3.7%

        24.7%

        Figure 2: National Rent Trends by Unit Size

        Landlords planning smaller rent increases

        Landlords have Noting the changing rental market landscape and planning for smaller rent increases than in previous quarters. According to the Avail, presented by Realtor.com®, Fall 2022 Landlord and Tenant Survey , 70.4% of Landlords surveyed by still plan to raise the rent of at least one rental unit in the next 12 months, Although that figure was down from the 72.1 percent reported in April and July.

        Although Most landlords still plan to raise rents, but only 18.3% expect increases of more than 10%, well below the 25.4% of landlords surveyed in April. Meanwhile, the share of landlords expecting rent increases of less than 5 percent climbed to 34.1 percent from 28.5 percent in July. Of these landlords, four in five (80%) said that rising costs of ownership had influenced their plans to increase rents, while 80.1% said changes in rental market prices in their area had influenced their decision-making.

        although Planned price increases are cooling off, but most landlords are reluctant to negotiate rental prices with tenants. According to the survey, only 17% of landlords said it was somewhat (14.4%) or very likely (2.6%) to allow new tenants to negotiate rent prices. Landlords, however, were a little more flexible when it came to renewing tenants, with 21.9% saying it was somewhat (17.5%) or very likely (4.4%) to negotiate the rent price.

        Realtor Avail by .com® offers a growing library of Helps independent landlords manage their rental properties efficiently. Landlords can get free rental forms, in-depth guides, housing research and more all from one convenient location.

        Home buying plans still hampered by renters’ efforts to save

        Ongoing financial challenges lead to consideration over the next 12 months. Less than a third (32.3%) of renters plan to own a home in the coming year, down from 34.6% in July. Of those renters, 83.9% said inflation and rising interest rates have affected their plans — up from 80.8% reported in July 2022. Those not planning to buy a home most frequently cited not having enough savings for a down payment (44.4%) or thought they would not qualify for a mortgage (19.6%).

        exist 67.5% of renters who said their plans were affected by rising interest rates and inflation were considering postponing home purchases and continuing to rent. However, the amount that median renter households said they could save ($100) per month did not increase, consistent with the July survey. The lack of improvement in renter household finances is likely to continue to cause renters to reevaluate their home buying plans.

        Realtor.com® Offers Rent and Buy Calculator for Tenants to help them decide if the purchase makes sense. The calculator helps renters estimate the length of lease required to buy, making it more financially meaningful than renting, and allows renters to customize based on location and tax norms.

        Appendix: Rental Data – 50 Largest Metro Areas – 202210 moon

      studio rent YY

      1-br Median Rent

      subway Overall Median Rent overall rent YY Median Studio Apartment Rent

      1-br rental YY 2-br Median Rent 2 bedrooms for rent YY Atlanta Sandy Springs-Roswell, Georgia

      $1,703 -0.80%

      $1,6612.80%1,596 Dollar-1.10%$1,859-0.40% Austin Round Rock, Texas $1,7032.00%

      $1,495

      6.40% $1,551 -0.50%$1,8692.30%

      $1,755 2.90%

      Baltimore-Columbia-Towson, MD

      $1,363

      -1.00%$1,6723.10%$1,8944.00% Birmingham, Alabama – Hoover $1,137 3.10%$952-9.90% $1,055

      1.80%

      $1,199 7.60%

      Boston-Cambridge-Newton-New Hampshire, MA $2,89412.80%$2,70625.00%$2,73812.20%$3,15211.00%

      Buffalo-Cheektowaga-Niagara Falls, New York $1,164

      0.00% $856 7.30%

      $1,202

      10.60% $1,190 3.60%

      Charlotte-Concord-Gastonia, NC-SC

      $1,606 3.40%$1,5118.60%

      $1,528 3.40% $1,7252.40 %

      Chicago-Naperville-Elgin, Illinois-in-Wisconsin $2,032

      23.70% $1,720 51.00%$1,95122.40%$2,18320.90%

      Cincinnati, Ohio, Kentucky

      $1,2737.00% $1,1828.60 %

      $1,212 6.50% $1,444

      7.60% Cleveland-Elyria, Ohio $1,169

      4.60%

      $892 7.90%

      $1,096

      0.30%

      $1,287

      9.00%

      Columbus, Ohio $1,2375.80%

      $9627.00% $1,176

      7.40%

      $1,3193.50%

      Dallas-Fort Worth-A, Texas Lynton

      $1,595

      5.80%$1,3475.70%$1,4454.50% USD 1,854

      5.10%

      DENVER-AURORA-LAKEWOOD,COLORADO

      $1,9071.10%

      $1,607 1.30%

      $1,781 0.30%

      $2,211 1.00%

      Detroit-Warren-Dearborn, MI

      $1,247

      8.60%

      $1,17114.60%

      $1,099

      7.70%

      $1,379

      6.70%

      Hartford-West Hartford-East Hartford, Connecticut1,726 Dollar

      9.40%

      $1,607 18.40% $1,5084.80% $1,894

      2.70%

      Texas Houston-Woodlands-Sugar Land

      $1,376 2.90%

      $1,268

      2.70%$1,267 2.70%

      $1,513 2.90% Indianapolis Lees-Carmel-Anderson, Indiana

      $1,276

      9.40%

      $1,1148.70% $1,1609.00%

      $1,3414.30%

      Jacksonville, FL $1,463 1.30%

      $1,116 10.70% $1,341

      1.20%

      $1,555

      -4.60 %

      Kansas City, MO-KS

      $1,274

      8.70%

      $1,019 8.80%

      $1,209

      10.20%$1,479 8.90%

      Las Vegas-Henderson-Paradise, NV

      $1,533 -2.50%$1,048

      0.00% $1,428 -2.10% $1,645- 3.70%

      Los Angeles-Long Beach-Anaheim, CA

      $2,921

      4.50%

      $2,288 7.10%$2,720

      4.10%

      $3,381

      4.30%
      Louisville/Jefferson County, KY

      $1,089

      3.30% $946

      3.50%$1,0184.70% $1,1463.80%

      Memphis, TN-MS-AR $1,270

      -0.70%

      $1,107

      -6.50%

      $1,246-4.30%$1,346 -1.60%

      Miami – Fort Lauderdale, FL – West Palm Beach $2,686

      8.40% $2,3339.50% $2,384

      8.40% $2,9605.00%

      Milwaukee-Waukesha-West Allis, WI

      $1,5305.40% $1,263 8.10%

      $1,4155.80%

      $1,704

      0.30% Minneapolis-St. Paul-Bloomington-Wisconsin, MN

      $1,5272.70%

      $1,241

      1.30%

      $1,452

      2.10%$1,808 2.20%

      Nashville-Davidson-Murfrees, TN Borough-Franklin

      $1,6254.10% US$1,600-1.10%

      $1,532 3.20% 1, $681 3.60%

      NEW ORLEANS-METAIRE, LA

      $1,393-3.70% Not applicableNot applicableNot applicable

      NA

      Not applicableNA

      New York – Newark – Jersey New York City – New Jersey – Pennsylvania

      $2,779 12.70%

      $2,486 12.60% $2,395 8.90% $3,0459.30% Oklahoma Home City, OK

      $946 9.70%

      $7686.90%$8394.80% $1,032

      13.30%

      1,805 Dollar

      5.90%

      $1,632

      10.60%$1,6796.20%

      $2,030

      5.10%

      Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $1,734

      4.10%

      $1,441 12.30%

      $1,642

      4.20%

      $1,844

      -0.80%

      Phoenix-Mesa-Scottsdale, Arizona

      $1,625-1.60%$1,309-0.30%

      $1,489

      -2.70%$1,746-4.40%

      Pennsylvania Pittsburgh US$1,440

      3.70%$1,19813.30%

      $1,470

      5.00% $1,475

      1.00%

      Portland-Vancouver-Hillsboro, OR

      $1,774

      5.10%

      $1,447

      3.50% $1,6783.40% $1,9352.60%

      Providence-Warwick, RI-MA

      $2,020

      13.60% Not applicable

      NA

      Not applicable

      Not applicable

      Not applicable

      Not applicable

      Raleigh, North Carolina

      $1,5383.60% $1,412 3.60%$1,4395.20%$1,6824.00%

      RICHMOND, VA

      $1,371 5.60% $1,243

      14.60%$1,2568.50%

      $1,523

      4.50%

      RIVERSIDE – SAN BERNARDINO – ONTARIO, CA $2,171

      -4.70%$1,492-14.60%$1,920 -4.60%

      $2,188

      -2. 90%

      Rochester, NY

      $1,350

      8.00%

      $1,03518.10% $1,314 12.70%

      $1,459

      9.30%

      Sacramento-Roseville-Arden, CA – Arcade

      $1,876-3.40 %$1,586-9.40%

      $1,740 -2.60%

      $2,012

      -0.50%

      San Antonio-New Braunfels, Texas

      $1,324

      4.70% $1,1130.00% $1,1993.70%

      $1,490

      2.90% San Diego, CA – Carlsbad

      $2,793 3.10% $2,285

      6.40% $2,5312.30 %

      $3,076

      0.90%

      San Francisco-Oakland-Hayward, CA

      $3,0315.80%$2,4888.90%$2,7673.50%

      $3,450 4.50% SAN JOSE – SUNNYVALE – SANTA CLARA, CA $3,2689.60%

      $2,5829.00 %$2,9438.50%$3,6209.10%

      Seattle-Tacoma-Bellevue, WA $2,1612.70% $1,841 6.60%$2,1131.40% $2,511

      4.00% Yingshi. Louis, Missouri $1,220

      3.80%

      $947

      4.10%

      $1,141

      3.80%$1,2831.40%

      Tampa St. Clearwater, St. Petersburg, FL

      $1,784

      -2.50% $1,476

      -2.80%

      $1,650

      -2.20%$1,968-4.60%

      Virginia Beach-Norfolk-Newport News, VA-NC

      $1,463

      3.90%$1,386

      19.50%

      $1,386

      3.00%

      US$1,480

      -2.40% Washington-Arlington-Alexander, DC-VA-MD-WV $2,126

      4.90%$1,7715.10% $2,0083.00% $2,454

      4.60%

      method

      Rents for units advertised for rent on Realtor.com® as of October data. Rental units include apartment communities as well as private rentals (apartments, townhouses, single-family homes). All units are studio, one bedroom or two bedroom units. We use communities that reliably report data within the top 50 largest metro areas each month. National rents are calculated by averaging the medians of the 50 largest metro areas. Realtor.com® is scheduled to publish each Monthly Rent Trend Report, with data history going back to March 2019.

      With the release of its August 2022 Rent Report, Realtor.com® has adopted a new and improved approach to capturing and reporting more comprehensive rental listing trends and metrics. The new methodology promises a clearer, more representative, and more consistent measurement of rental listings and trends at the national and local levels. The methodology has been adjusted to better represent the true cost of primary housing for renters. There will be minor changes across most of the country, and larger updates in a few areas. Due to these changes, rental data published since September 2022 will not be directly comparable to previously published versions (files downloaded prior to September 2022) and Realtor.com® Economics blog posts. However, future data releases, including historical data, will always use the new methodology.

      The Avail, presented by Realtor.com®, the Fall 2022 Landlord and Tenant Survey collected responses from a nationally representative sample of more than 2,700 independent landlords and tenants. The survey will be conducted between November 1, 2022 and November 9, 2022. The margin of error for independent landlords is ± 3.1 percent, and that for tenants is ± 2.4 percent. Avail, Realtor.com® conducts regular rental market research to understand the needs of independent landlords and their renters. Visit the Avail Housing Research page and join the special Reports mailing list to stay abreast of the latest news, trends and insights into the independent rental market.

      Note: The authorship belongs to Jiayi Xu and Kaycee Jackson

      Subscribe to our mailing list to receive monthly updates and notifications on the latest data and research.

      Xu Jiayi

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