National rents grew at a double-digit annual
pace (+15.5%) for the 10th straight month in May, but by the
smallest amount since fall 2021 – hinting at potential relief to
come later this year
SANTA
CLARA, Calif., June 22,
2022 /PRNewswire/ -- The U.S. median rental price hit
its latest new high of $1,849 per
month in May, representing a 26.6% increase since 2019 before the
pandemic began, according to the Realtor.com® Monthly
Rental Report released today. While May marked the 10th
straight month of double-digit annual growth in national rents, the
increase was the smallest since September
2021, offering renters a glimpse of a light at the end of
the tunnel.
"There's no question that renters are facing sky high prices.
And with rising inflation reflecting price jumps for both rents and
everyday expenses, many renters are feeling the strain on their
finances," said Realtor.com® Chief Economist
Danielle Hale. "Still, our May data
suggests that the rent surge is beginning to lose some steam, in
part because incomes can't keep up, even in the strong job market.
Although rent growth remains historically high, the rate has been
gradually cooling since January, pulling back from 2021's feverish
pace. In a bit of good news for renters, the deceleration picked up
in May which means if these trends continue, last month's
prediction of rents surpassing $2,000 sometime this summer is going to take
longer to materialize."
May 2022 Rental Metrics –
National
Unit
Size
|
Median
Rent
|
Change over May
2021
|
Change over May
2020
|
Overall
|
$1,849
|
15.5 %
|
23.2 %
|
Studio
|
$1,530
|
16.9 %
|
18.8 %
|
1-bed
|
$1,708
|
15.2 %
|
22.5 %
|
2-bed
|
$2,076
|
14.8 %
|
25.5 %
|
National rents maintain double-digit growth, but cool
slightly from 2021's record pace
For Americans looking for available rental units within their
budgets, May trends offer bittersweet news. On one hand, national
rents posted the smallest year-over-year gain (+15.5%) since
September 2021, moderating from their
January peak (+17.3%) for the fourth consecutive month. As a
result, rents took a step back from their previous projection of
surpassing $2,000 by as early as this
summer. In fact, if rent growth continues cooling, typical asking
rents may not reach that milestone until next year. Additionally,
with the for-sale housing supply recovery forecasted to
accelerate in the second half of the year, a rise in first-time
buying opportunities could take even more pressure off rental
demand and prices.
Still, rental affordability remained a significant
challenge for many renters across the country in May. The U.S.
median rental price continued its record-breaking streak, hitting a
new high ($1,849) for the fifteenth
month in a row and reaching 26.6% higher than in May 2019 before the onset of COVID. Additionally,
all unit sizes posted double-digit rental price gains
year-over-year: studios, up 16.9% to $1,530; one-bedrooms, up 15.2% to $1,708; and two-bedrooms, up 14.8% to
$2,076. Rising inflation is further
compounding the strain on households' monthly budgets, as higher
costs of rents and regular expenses continue to outpace income
growth.
Renters find relatively more affordable options where rental
vacancy rates are lowest
In May, rents grew on a year-over-year basis in all 50 of the
largest U.S. metros and at a faster pace than the national rate in
nearly half (21) of these markets. The biggest annual rental price
gains were registered in Miami
(+45.8%), Orlando, Fla. (+28.4%),
Providence, R.I. (+23.8%),
San Diego (+22.7%) and
Tampa, Fla. (+22.4%).
A key factor driving the ongoing rent surge is a lack of supply,
as rental vacancy rates, which were already trending lower, have
taken a sharp dive during the pandemic. These trends are magnified
in the biggest cities that tend to attract younger residents, many
of whom are in the early stages of their careers and looking for
the flexibility in their living situations. Renting may also be a
more desirable alternative to buying in these areas, where real
estate has historically come at a premium. According to U.S. Census
Bureau data from the first quarter of 2022, rental vacancy rates
were lower inside (5.7%) versus outside (6.7%) the largest metro
areas.
Realtor.com® analysis highlights the relationship
between large markets' rental availability and prices. On one end
of the spectrum, major tech hub Boston held the nation's fifth highest rent
($2,889) in May after posting a
vacancy rate of just 2.4% in 2022-Q1. Conversely, renters may find
more affordable options in relatively smaller and less densely
populated secondary metros. Of the 10 areas with the highest
vacancy rates, nine were among May's lowest-priced rental markets,
led by Indianapolis with a
significantly lower overall rent ($1,275) and higher vacancy rate (10.9%) than in
Boston (see table below).
May 2022 Rental Metrics – Top 10
Metros by Lowest Vacancy Rates in 2022-Q1
Metro
|
Vacancy
Rate 2022-
Q1
|
May Median
Rental
Price
|
May Median Rental
Price
Rank (Highest to Lowest)
|
Indianapolis,
Ind.
|
10.9 %
|
$1,275
|
47
|
Pittsburgh,
Penn.
|
10.6 %
|
$1,528
|
34
|
Raleigh,
N.C.
|
10.1 %
|
$1,652
|
28
|
Houston,
Texas
|
9.7 %
|
$1,444
|
37
|
Buffalo,
N.Y.
|
9.5 %
|
$1,333
|
44
|
Cincinnati,
Ohio
|
9.0 %
|
$1,473
|
35
|
Oklahoma City,
Okla.
|
8.7 %
|
$1,000
|
50
|
Tampa, Fla.
|
8.4 %
|
$2,093
|
12
|
Birmingham,
Ala.
|
8.0 %
|
$1,234
|
48
|
Charlotte,
N.C.
|
7.8 %
|
$1,719
|
26
|
May 2022 Rental Metrics – 50
Largest U.S. Metro Areas
Metro
Area
|
Overall
Median
Rent
|
Overall
Rent YoY
|
Studio
Median
Rent
|
Studio
Rent YoY
|
1-br
Median
Rent
|
1-br Rent
YoY
|
2-br
Median
Rent
|
2-br Rent
YoY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,840
|
13.4 %
|
$1,699
|
15.3 %
|
$1,707
|
13.8 %
|
$2,055
|
13.0 %
|
Austin-Round Rock,
Texas
|
$1,829
|
21.9 %
|
$1,474
|
22.8 %
|
$1,687
|
25.4 %
|
$2,018
|
18.7 %
|
Baltimore-Columbia-Towson, Md.
|
$1,811
|
11.0 %
|
$1,425
|
6.2 %
|
$1,707
|
9.4 %
|
$1,915
|
9.4 %
|
Birmingham-Hoover,
Ala.
|
$1,234
|
8.9 %
|
$1,056
|
3.2 %
|
$1,164
|
11.3 %
|
$1,308
|
9.3 %
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,889
|
21.5 %
|
$2,473
|
26.8 %
|
$2,693
|
19.7 %
|
$3,254
|
25.1 %
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,333
|
9.2 %
|
$1,125
|
2.7 %
|
$1,175
|
6.9 %
|
$1,495
|
8.7 %
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,719
|
18.5 %
|
$1,603
|
22.5 %
|
$1,617
|
18.9 %
|
$1,867
|
13.8 %
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,961
|
15.3 %
|
$1,655
|
23.2 %
|
$1,915
|
14.5 %
|
$2,175
|
11.0 %
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,473
|
10.3 %
|
$1,212
|
12.7 %
|
$1,395
|
8.7 %
|
$1,610
|
7.4 %
|
Cleveland-Elyria,
Ohio
|
$1,414
|
10.9 %
|
$946
|
5.6 %
|
$1,317
|
7.5 %
|
$1,537
|
13.4 %
|
Columbus,
Ohio
|
$1,300
|
11.6 %
|
$1,090
|
11.1 %
|
$1,215
|
11.1 %
|
$1,401
|
8.2 %
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,676
|
19.7 %
|
$1,439
|
21.4 %
|
$1,543
|
21.0 %
|
$1,958
|
18.7 %
|
Denver-Aurora-Lakewood,
Colo.
|
$2,010
|
12.9 %
|
$1,636
|
13.6 %
|
$1,884
|
13.5 %
|
$2,369
|
13.9 %
|
Detroit-Warren-Dearborn, Mich.
|
$1,415
|
7.2 %
|
$1,115
|
12.1 %
|
$1,185
|
6.7 %
|
$1,581
|
7.2 %
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,754
|
12.4 %
|
$1,468
|
27.7 %
|
$1,522
|
5.0 %
|
$2,073
|
16.4 %
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,444
|
11.1 %
|
$1,362
|
10.9 %
|
$1,325
|
12.7 %
|
$1,630
|
12.4 %
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,275
|
10.9 %
|
$1,065
|
9.1 %
|
$1,175
|
11.9 %
|
$1,418
|
9.1 %
|
Jacksonville,
Fla.
|
$1,593
|
18.0 %
|
$1,185
|
31.7 %
|
$1,509
|
20.0 %
|
$1,756
|
20.4 %
|
Kansas City,
Mo.-Kan.
|
$1,316
|
11.1 %
|
$1,024
|
8.4 %
|
$1,243
|
17.3 %
|
$1,499
|
11.0 %
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,648
|
20.2 %
|
$1,295
|
29.6 %
|
$1,518
|
19.7 %
|
$1,744
|
17.9 %
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$3,019
|
17.7 %
|
$2,313
|
17.4 %
|
$2,789
|
20.9 %
|
$3,462
|
16.7 %
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,224
|
13.8 %
|
$1,005
|
11.6 %
|
$1,149
|
13.6 %
|
$1,397
|
11.0 %
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,413
|
17.7 %
|
$1,151
|
6.7 %
|
$1,362
|
17.9 %
|
$1,543
|
18.8 %
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,843
|
45.8 %
|
$2,413
|
41.8 %
|
$2,500
|
38.9 %
|
$3,201
|
45.5 %
|
Milwaukee-Waukesha-West
Allis, Wis.
|
$1,578
|
12.7 %
|
$1,263
|
10.8 %
|
$1,465
|
10.6 %
|
$1,770
|
10.6 %
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,590
|
4.2 %
|
$1,250
|
4.6 %
|
$1,497
|
3.2 %
|
$1,944
|
2.9 %
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
$1,749
|
20.6 %
|
$1,685
|
16.2 %
|
$1,625
|
19.1 %
|
$1,895
|
22.3 %
|
New Orleans-Metairie,
La.
|
$1,805
|
12.8 %
|
$1,407
|
27.9 %
|
$1,618
|
8.4 %
|
$2,108
|
13.9 %
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$2,872
|
18.7 %
|
$2,616
|
30.8 %
|
$2,565
|
14.0 %
|
$3,254
|
16.2 %
|
Oklahoma City,
Okla.
|
$1,000
|
11.2 %
|
$936
|
33.7 %
|
$911
|
8.5 %
|
$1,099
|
14.4 %
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,955
|
28.4 %
|
$1,691
|
24.3 %
|
$1,811
|
27.4 %
|
$2,221
|
30.3 %
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$1,800
|
7.5 %
|
$1,525
|
8.2 %
|
$1,717
|
5.6 %
|
$1,995
|
5.0 %
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,788
|
16.6 %
|
$1,424
|
16.2 %
|
$1,626
|
15.8 %
|
$1,972
|
14.7 %
|
Pittsburgh,
Pa.
|
$1,528
|
6.6 %
|
$1,275
|
10.4 %
|
$1,510
|
9.0 %
|
$1,673
|
3.2 %
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,798
|
10.9 %
|
$1,444
|
7.3 %
|
$1,750
|
11.1 %
|
$2,138
|
8.2 %
|
Providence-Warwick,
R.I.-Mass.
|
$2,198
|
23.8 %
|
$1,752
|
16.8 %
|
$1,920
|
23.9 %
|
$2,500
|
31.6 %
|
Raleigh,
N.C.
|
$1,652
|
19.5 %
|
$1,478
|
20.7 %
|
$1,525
|
22.0 %
|
$1,833
|
18.6 %
|
Richmond,
Va.
|
$1,460
|
15.9 %
|
$1,185
|
18.9 %
|
$1,326
|
15.8 %
|
$1,570
|
15.0 %
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,617
|
9.5 %
|
$1,842
|
22.4 %
|
$2,159
|
10.7 %
|
$2,858
|
8.9 %
|
Rochester,
N.Y.
|
$1,367
|
11.6 %
|
$1,005
|
11.0 %
|
$1,305
|
14.5 %
|
$1,497
|
12.9 %
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
$2,090
|
8.6 %
|
$1,844
|
7.8 %
|
$1,968
|
6.8 %
|
$2,255
|
7.6 %
|
San Antonio-New
Braunfels, Texas
|
$1,397
|
17.4 %
|
$1,254
|
13.4 %
|
$1,282
|
18.8 %
|
$1,600
|
19.0 %
|
San Diego-Carlsbad,
Calif.
|
$3,099
|
22.7 %
|
$2,484
|
19.7 %
|
$2,873
|
23.6 %
|
$3,450
|
19.0 %
|
San
Francisco-Oakland-Hayward, Calif.
|
$3,056
|
10.1 %
|
$2,431
|
10.1 %
|
$2,802
|
10.4 %
|
$3,522
|
6.8 %
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,253
|
19.8 %
|
$2,545
|
22.4 %
|
$3,039
|
21.9 %
|
$3,665
|
19.6 %
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,233
|
16.6 %
|
$1,859
|
21.9 %
|
$2,217
|
15.9 %
|
$2,673
|
15.5 %
|
St. Louis,
Mo.-Ill.
|
$1,346
|
6.5 %
|
$1,017
|
7.1 %
|
$1,290
|
8.9 %
|
$1,469
|
4.9 %
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$2,093
|
22.4 %
|
$1,965
|
21.0 %
|
$1,879
|
21.2 %
|
$2,342
|
24.6 %
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,567
|
12.7 %
|
$1,352
|
10.0 %
|
$1,474
|
12.5 %
|
$1,686
|
9.3 %
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$2,150
|
12.0 %
|
$1,745
|
12.2 %
|
$2,054
|
11.9 %
|
$2,562
|
9.9 %
|
Methodology
Data as of May 2022 for studio,
1-bedroom, or 2-bedroom units advertised as for-rent on
Realtor.com®. Rental units include apartment communities
as well as private rentals (condos, townhomes, single-family
homes). National rents were calculated by averaging the medians of
the 50 largest U.S. metropolitan areas, defined by the Core-Based
Statistical Area (CBSA). Realtor.com® began publishing
regular monthly rental trends reports in October 2020 with data history going back to
March 2019.
Note: With the release of its May
2022 Rental Report, Realtor.com® incorporated a
new and improved methodology (see details here). As a result of
these changes, the rental data released since May 2022 will not be directly comparable with
prior publications and downloaded files. However, future releases,
including historical data, will consistently apply the new
methodology.
About Realtor.com®
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living in homes easier and more rewarding for everyone.
Realtor.com® pioneered the world of digital real estate
more than 25 years ago, and today through its website and mobile
apps offers a marketplace where people can learn about their
options, trust in the transparency of information provided to them,
and get services and resources that are personalized to their
needs. Using proprietary data science and machine learning
technology, Realtor.com® pairs buyers and sellers with
local agents in their market, helping take the guesswork out of
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Realtor.com® is a trusted provider of consumer
connections and branding solutions that help them succeed in
today's on-demand world. Realtor.com® is operated by
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Inc. For more information, visit Realtor.com®.
Media Contact
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