Current:Home > ScamsRent is falling across the U.S. for the first time since 2020 -Mastery Money Tools
Rent is falling across the U.S. for the first time since 2020
View
Date:2025-04-18 12:30:15
Renters across the U.S. are getting some relief as rental prices fall for the first time in two years.
A new study from real estate website Realtor.com shows the median rent nationwide fell 0.5% in May from a year ago, the first dip over the trailing 12 months since the pandemic erupted in 2020.
"This is yet another sign that rental-driven inflation is likely behind us, even though we may not see this trend in official measures until next year," Realtor.com Chief Economist Danielle Hale said in a statement. "Although still modest, a decline in rents combined with cooling inflation and a still-strong job market is definitely welcome news for households."
The median rent for an apartment with two bedrooms or less was $1,739 in May, down from a high of $1,777 in July of 2022, according to the study.
Still, the cost of renting an apartment remains considerably higher than it was before the pandemic. The typical rent is about 25% higher, or $344, than it was in 2019, the data shows.
Realtor.com calculated U.S. median rent for studio, one-bedroom and two-bedroom apartments across the 50 largest U.S. metropolitan areas.
Rental prices in major cities across the U.S. dropped steeply in 2020 as mostly white-collar workers fled to smaller, less-populated towns. But prices surged in 2021, reversing the trend, as return-to-office orders and school re-openings drew individuals and families back to larger cities.
Rents still rising in Midwest
While the U.S. median rent has dropped, rental prices aren't trending down in every region. In the Midwest, rents were up 4.5% in May from a year ago, according to Realtor.com. Rents climbed the highest year over year in Columbus, Ohio (9.3%); St. Louis, Missouri (7.7%); and Cincinnati (7.7%).
- Tenants make emotional pleas against rent increase at New York City Rent Guidelines Board meeting
- Here are the U.S. cities where rent is rising the fastest
- Should you rent or buy? High home prices, mortgage rates challenge the American dream of homeownership
However, the rate at which rents are climbing has moderated across the U.S. over the past year. While rent growth for single-family homes in April increased an average of 3.7% from a year ago, it was the 12th straight month of declines, according to real estate research firm CoreLogic.
Realtor.com predicts median asking rents will fall 0.9% by year's end.
"Looking forward, we expect to see a continued, albeit small, year-over-year decline in rental prices throughout the remainder of the year," Hale said. "Renters may find themselves with more bargaining power and may have better luck finding an affordable unit this year."
- In:
- Home Prices
- Economy
- Real Estate
- Rents
- Home Sales
veryGood! (132)
Related
- McConnell absent from Senate on Thursday as he recovers from fall in Capitol
- A trial begins in Norway of a man accused of a deadly shooting at a LGBTQ+ festival in Oslo
- New Heights: Jason and Travis Kelce win iHeartRadio Podcast of the Year award
- When does 'Invincible' come out? Season 2 Part 2 release date, cast, where to watch
- Intel's stock did something it hasn't done since 2022
- Bob Saget's widow Kelly Rizzo addresses claim she moved on too quickly after his death
- Judge rules missing 5-year-old girl legally dead weeks after father convicted of killing her
- Wisconsin Legislature to end session with vote on transgender athlete ban, no action on elections
- Nevada attorney general revives 2020 fake electors case
- No longer afraid, Rockies' Riley Pint opens up about his comeback journey: 'I want to be an inspiration'
Ranking
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- Aaron Judge undergoes MRI on his abs and gets results. What's next for Yankees' captain?
- Michigan man who was accidently shot in face with ghost gun sues manufacturer and former friend
- West Virginia GOP County Commissioners arrested over skipping meetings in protest
- Sam Taylor
- Kate’s photo scandal shows how hard it is for the UK monarchy to control its narrative
- Nearly naked John Cena presents Oscar for best costume design at 2024 Academy Awards
- 5 dead, including 3 children, in crash involving school bus, truck in Rushville, Illinois
Recommendation
Former longtime South Carolina congressman John Spratt dies at 82
Kristin Cavallari Reveals How She Met Boyfriend and Hottest Guy Ever Mark Estes
Jury sees bedroom photo of empty box that held gun used in Michigan school shooting
Four astronauts from four countries return to Earth after six months in orbit
Woman dies after Singapore family of 3 gets into accident in Taiwan
Billionaires are ditching Nvidia. Here are the 2 AI stocks they're buying instead.
Jury sees bedroom photo of empty box that held gun used in Michigan school shooting
Married Idaho couple identified as victims of deadly Oregon small plane crash