Nearly 70% of renters surveyed are considering
moving to save money as rent increases cut into monthly budgets and
hinder savings
SANTA
CLARA, Calif., Nov. 17,
2022 /PRNewswire/ -- Renters throughout the country
are finally seeing a bit of relief when it comes to the seemingly
relentless pace of rent growth. The
Realtor.com® October Rental Report shows that
nationally rent growth slowed to 4.7% year-over-year, its slowest
pace in 18 months, with the median U.S. rent hitting $1,734. Additionally, The Avail, by
Realtor.com®, 2022 Fall Landlord and Renter Survey found
that while tenants are still struggling with affordability, the
majority of landlords are planning increases in the next 12 months,
albeit less than before.
"With soaring inflation and recession fears a huge concern for
many consumers, finding affordable housing remains a priority for
families. Our data indicates that we are finally starting to see a
bit of relief from the double-digit pace of rent growth that we
experienced during the height of the pandemic," said Danielle Hale, Chief Economist at
Realtor.com®. "While it's still a bit early to say that
we're officially on a downward trajectory for rent prices, the data
shows a promising return toward normal seasonal slowdowns and
suggests that the astronomical price gains of the past several
years may be behind us."
October 2022 Rental Metrics –
National
Unit
Size
|
Median
Rent
|
Change since Oct.
2021
|
Change since Oct.
2019
|
Overall
|
$1,734
|
4.7 %
|
23.5 %
|
Studio
|
$1,457
|
6.7 %
|
18.3 %
|
1-bed
|
$1,611
|
4.5 %
|
23.2 %
|
2-bed
|
$1,901
|
3.7 %
|
24.7 %
|
Rent prices slowly falling from historic highs
The
median rent in the top 50 U.S. metros in October was $1,734, down $25
from last month and $47 from the peak
in July. This marks the third consecutive month of single-digit
growth and the ninth consecutive month of slowing. However, the
pace of growth was still nearly 1.5 times faster than it was in
March 2020, just before the pandemic
hit. During the late-fall and early-winter, rental demand typically
slows, as it's a less popular time for households to make a move.
This year is showing a return to a normal seasonal slowdown that we
didn't see the last two years. Despite these cooling prices,
renters are still feeling the sting of the sharp increases of the
past several years.
Renters seek affordability after recent rent hikes
The
Avail 2022 Fall Landlord and Renter Survey found that:
- Nearly two-thirds (63.2%) of renters who have been in their
current unit for 12-24 months have seen their rent increase, up
from 52.2% in July.
- The median monthly rent increase reported by survey respondents
was $138 for lease renewals (compared
to $160 in July) and $300 for new leases (the same as in July).
- Despite lower increases, affordability is still a major
concern, as 69.5% who had experienced an increase are considering
moving to a more affordable rental, up from 66.2% in July.
- Those considering moving are looking for a 12.5% cost
reduction, or about $200 per month
for the median renter. This is up from 10.3%, or about $125, in July.
Lower rent prices might not be easy to find, as most
landlords plan to continue increasing rent
- More than two thirds (70.4%) of landlords plan to raise the
rent of at least one unit within the next 12 months (down from
72.1% in July).
- However, there is some good news. The number of landlords
planning to increase rent more than 10% shrunk from 25.4% of
landlords in April to 18.3% in October.
"While it's encouraging to see smaller price increases, it's
important to understand that many renters have already absorbed
large increases in their monthly rental costs over the past several
years, which is impacting their ability to save," said Ryan Coon, VP of Rentals at
Realtor.com®. "High inflation and the cost of upkeep and
repairs are hitting landlords, who have had to raise rents to cover
their higher cost of owning the properties and making it unlikely
that they'll be open to negotiating with new tenants."
Little room for negotiation as landlords feel the
pinch
The increasing cost of ownership and market conditions
have impacted landlords. However, there is a bit more room to
negotiate for renewing tenants:
- While 34.7% of renters attempted to negotiate a smaller rent
increase when their rent was most recently raised, only 6% of all
renters were successful in doing so.
- Landlords surveyed were not likely to be open to negotiating,
but were more likely with renewing tenants. Just 17% of landlords
report being somewhat likely (14.4%) or extremely likely (2.6%) to
allow a new renter to negotiate over the price of rent. But for
renewing tenants, that increased to 21.9% being somewhat likely
(17.5%) or extremely likely (4.4%) to negotiate.
- Increasing cost of ownership has led 80% of landlords to
increase rent over the past 12 months. Among these landlords, 80.1%
indicate that changes in rental market prices in their area
influenced their decision to raise rent.
High rent prices impact the ability to save for a
home
The typical renter reported being able to save just
$100 per month, so it's not
surprising that:
- Just 32.3% of renters are considering purchasing a home in the
next 12 months, down from 34.6% in July.
- The biggest reasons cited were not having enough savings for a
down payment (44.4%) and believing they would not qualify for a
mortgage (19.6%).
- Among renters considering purchasing a home, 83.9% said that
rising interest rates and inflation have impacted their plans to
buy a home, up from 80.8% in July.
Avail provides informational resources for both renters and
landlords via its rental resource center at:
https://www.avail.co/education/resources
October 2022 Rental Metrics – 50
Largest U.S. Metro Areas
Metro
|
Overall
Median
Rent
|
Overall
Rent
YY
|
Studio
Median
Rent
|
Studio
Rent
YY
|
1-br
Median
Rent
|
1-br
Rent
YY
|
2-br
Median
Rent
|
2-br
Rent
YY
|
|
|
Atlanta-Sandy
Springs-Roswell,
Ga.
|
$1,703
|
-0.8 %
|
$1,661
|
2.8 %
|
$1,596
|
-1.1 %
|
$1,859
|
-0.4 %
|
|
Austin-Round Rock,
Texas
|
$1,703
|
2.0 %
|
$1,495
|
6.4 %
|
$1,551
|
-0.5 %
|
$1,869
|
2.3 %
|
|
Baltimore-Columbia-Towson, Md.
|
$1,755
|
2.9 %
|
$1,363
|
-1.0 %
|
$1,672
|
3.1 %
|
$1,894
|
4.0 %
|
|
Birmingham-Hoover,
Ala.
|
$1,137
|
3.1 %
|
$952
|
-9.9 %
|
$1,055
|
1.8 %
|
$1,199
|
7.6 %
|
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,894
|
12.8 %
|
$2,706
|
25.0 %
|
$2,738
|
12.2 %
|
$3,152
|
11.0 %
|
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,164
|
0.0 %
|
$856
|
7.3 %
|
$1,202
|
10.6 %
|
$1,190
|
3.6 %
|
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,606
|
3.4 %
|
$1,511
|
8.6 %
|
$1,528
|
3.4 %
|
$1,725
|
2.4 %
|
|
Chicago-Naperville-Elgin,
Ill.-Ind.-Wisc.
|
$2,032
|
23.7 %
|
$1,720
|
51.0 %
|
$1,951
|
22.4 %
|
$2,183
|
20.9 %
|
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,273
|
7.0 %
|
$1,182
|
8.6 %
|
$1,212
|
6.5 %
|
$1,444
|
7.6 %
|
|
Cleveland-Elyria,
Ohio
|
$1,169
|
4.6 %
|
$892
|
7.9 %
|
$1,096
|
0.3 %
|
$1,287
|
9.0 %
|
|
Columbus,
Ohio
|
$1,237
|
5.8 %
|
$962
|
7.0 %
|
$1,176
|
7.4 %
|
$1,319
|
3.5 %
|
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,595
|
5.8 %
|
$1,347
|
5.7 %
|
$1,445
|
4.5 %
|
$1,854
|
5.1 %
|
|
Denver-Aurora-Lakewood,
Colo.
|
$1,907
|
1.1 %
|
$1,607
|
1.3 %
|
$1,781
|
0.3 %
|
$2,211
|
1.0 %
|
|
Detroit-Warren-Dearborn,
Mich.
|
$1,247
|
8.6 %
|
$1,171
|
14.6 %
|
$1,099
|
7.7 %
|
$1,379
|
6.7 %
|
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,726
|
9.4 %
|
$1,607
|
18.4 %
|
$1,508
|
4.8 %
|
$1,894
|
2.7 %
|
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,376
|
2.9 %
|
$1,268
|
2.7 %
|
$1,267
|
2.7 %
|
$1,513
|
2.9 %
|
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,276
|
9.4 %
|
$1,114
|
8.7 %
|
$1,160
|
9.0 %
|
$1,341
|
4.3 %
|
|
Jacksonville,
Fla.
|
$1,463
|
1.3 %
|
$1,116
|
10.7 %
|
$1,341
|
1.2 %
|
$1,555
|
-4.6 %
|
|
Kansas City,
Mo.-Kan.
|
$1,274
|
8.7 %
|
$1,019
|
8.8 %
|
$1,209
|
10.2 %
|
$1,479
|
8.9 %
|
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,533
|
-2.5 %
|
$1,048
|
0.0 %
|
$1,428
|
-2.1 %
|
$1,645
|
-3.7 %
|
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,921
|
4.5 %
|
$2,288
|
7.1 %
|
$2,720
|
4.1 %
|
$3,381
|
4.3 %
|
|
Louisville/Jefferson
County,
Ky.-Ind.
|
$1,089
|
3.3 %
|
$946
|
3.5 %
|
$1,018
|
4.7 %
|
$1,146
|
3.8 %
|
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,270
|
-0.7 %
|
$1,107
|
-6.5 %
|
$1,246
|
-4.3 %
|
$1,346
|
-1.6 %
|
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,686
|
8.4 %
|
$2,333
|
9.5 %
|
$2,384
|
8.4 %
|
$2,960
|
5.0 %
|
|
Milwaukee-Waukesha-West
Allis, Wisc.
|
$1,530
|
5.4 %
|
$1,263
|
8.1 %
|
$1,415
|
5.8 %
|
$1,704
|
0.3 %
|
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wisc.
|
$1,527
|
2.7 %
|
$1,241
|
1.3 %
|
$1,452
|
2.1 %
|
$1,808
|
2.2 %
|
|
Nashville-Davidson–Murfreesboro–Franklin,
Tenn.
|
$1,625
|
4.1 %
|
$1,600
|
-1.1 %
|
$1,532
|
3.2 %
|
$1,681
|
3.6 %
|
|
New Orleans-Metairie,
La.
|
$1,393
|
-3.7 %
|
NA
|
NA
|
NA
|
NA
|
NA
|
NA
|
|
New
York-Newark-Jersey
City,
N.Y.-N.J.-Pa.
|
$2,779
|
12.7 %
|
$2,486
|
12.6 %
|
$2,395
|
8.9 %
|
$3,045
|
9.3 %
|
|
Oklahoma City,
Okla.
|
$946
|
9.7 %
|
$768
|
6.9 %
|
$839
|
4.8 %
|
$1,032
|
13.3 %
|
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,805
|
5.9 %
|
$1,632
|
10.6 %
|
$1,679
|
6.2 %
|
$2,030
|
5.1 %
|
|
Philadelphia-Camden-Wilmington,
Penn.-N.J.-Del.-Md.
|
$1,734
|
4.1 %
|
$1,441
|
12.3 %
|
$1,642
|
4.2 %
|
$1,844
|
-0.8 %
|
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,625
|
-1.6 %
|
$1,309
|
-0.3 %
|
$1,489
|
-2.7 %
|
$1,746
|
-4.4 %
|
|
Pittsburgh,
Penn.
|
$1,440
|
3.7 %
|
$1,198
|
13.3 %
|
$1,470
|
5.0 %
|
$1,475
|
1.0 %
|
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,774
|
5.1 %
|
$1,447
|
3.5 %
|
$1,678
|
3.4 %
|
$1,935
|
2.6 %
|
|
Providence-Warwick,
R.I.-Mass.
|
$2,020
|
13.6 %
|
NA
|
NA
|
NA
|
NA
|
NA
|
NA
|
|
Raleigh,
N.C.
|
$1,538
|
3.6 %
|
$1,412
|
3.6 %
|
$1,439
|
5.2 %
|
$1,682
|
4.0 %
|
|
Richmond,
Va.
|
$1,371
|
5.6 %
|
$1,243
|
14.6 %
|
$1,256
|
8.5 %
|
$1,523
|
4.5 %
|
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,171
|
-4.7 %
|
$1,492
|
-14.6 %
|
$1,920
|
-4.6 %
|
$2,188
|
-2.9 %
|
|
Rochester,
N.Y.
|
$1,350
|
8.0 %
|
$1,035
|
18.1 %
|
$1,314
|
12.7 %
|
$1,459
|
9.3 %
|
|
Sacramento–Roseville–Arden-Arcade, Calif.
|
$1,876
|
-3.4 %
|
$1,586
|
-9.4 %
|
$1,740
|
-2.6 %
|
$2,012
|
-0.5 %
|
|
San Antonio-New
Braunfels, Texas
|
$1,324
|
4.7 %
|
$1,113
|
0.0 %
|
$1,199
|
3.7 %
|
$1,490
|
2.9 %
|
|
San Diego-Carlsbad,
Calif.
|
$2,793
|
3.1 %
|
$2,285
|
6.4 %
|
$2,531
|
2.3 %
|
$3,076
|
0.9 %
|
|
San
Francisco-Oakland-Hayward, Calif.
|
$3,031
|
5.8 %
|
$2,488
|
8.9 %
|
$2,767
|
3.5 %
|
$3,450
|
4.5 %
|
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,268
|
9.6 %
|
$2,582
|
9.0 %
|
$2,943
|
8.5 %
|
$3,620
|
9.1 %
|
|
Seattle-Tacoma-Bellevue,
Wash.
|
$2,161
|
2.7 %
|
$1,841
|
6.6 %
|
$2,113
|
1.4 %
|
$2,511
|
4.0 %
|
|
St. Louis,
Mo.-Ill.
|
$1,220
|
3.8 %
|
$947
|
4.1 %
|
$1,141
|
3.8 %
|
$1,283
|
1.4 %
|
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,784
|
-2.5 %
|
$1,476
|
-2.8 %
|
$1,650
|
-2.2 %
|
$1,968
|
-4.6 %
|
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,463
|
3.9 %
|
$1,386
|
19.5 %
|
$1,386
|
3.0 %
|
$1,480
|
-2.4 %
|
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$2,126
|
4.9 %
|
$1,771
|
5.1 %
|
$2,008
|
3.0 %
|
$2,454
|
4.6 %
|
|
Methodology
Rental data as of October 2022 for units advertised as for-rent on
Realtor.com®. Rental units include apartment communities
as well as private rentals (condos, townhomes, single-family
homes). All units were studio, 1-bedroom, or 2-bedroom units. We
use communities that reliably report data each month within the top
50 largest metropolitan areas. National rents were calculated by
averaging the medians of the 50 largest metropolitan areas.
Realtor.com® began publishing regular monthly rental
trends reports in October 2020 with
data history stretching back to March
2019.
The Avail 2022 Fall Landlord and Renter Survey collected
responses from a nationally representative sample of more than
2,700 independent landlords and renters. The survey was conducted
between November 1, 2022, and
November 9, 2022. The margin of error
for independent landlords is ± 3.1%, and ± 2.4% for renters. Avail
(a part of Realtor.com®) regularly conducts rental
market research to understand the needs of independent landlords
and their renters. For additional resources for renters and
landlords, visit: https://www.avail.co/blog
About Realtor.com®
Realtor.com®
is an open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real estate
more than 25 years ago. Today, through its website and mobile apps,
Realtor.com® is a trusted guide for consumers,
empowering more people to find their way home by breaking down
barriers, helping them make the right connections, and creating
confidence through expert insights and guidance. For professionals,
Realtor.com® is a trusted partner for business growth,
offering consumer connections and branding solutions that help them
succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. For more information, visit
Realtor.com®.
Media Contact
press@realtor.com
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