SANTA CLARA, Calif.,
Jan. 26, 2022 /PRNewswire/
-- New data shows national rents grew five times faster in
2021 than in 2020, on average, according to the
Realtor.com® Monthly Rental Report released today.
In December, rents notched the sixth straight month of double-digit
yearly increases nationwide and surged in the majority of large
metros, led by Miami, Tampa, Fla. and Orlando with gains of more than 34%
each.
"On average in 2021, national rents were more than
10% higher than in 2020. As our December report further
illustrates, this average understates the wild ride that the rental
market, and many renters, experienced in 2021. Rents started the
year roughly flat and gained incredible momentum throughout the
year, hitting double-digit yearly pace by summer and continuing to
surge through December," said Realtor.com® Chief
Economist Danielle Hale.
"While yearly growth is still strong, monthly growth
cooled in December, which is typical for this time of year and not
expected to last. With rents already at a high and expected to
keep going up, rental affordability will increasingly challenge
many Americans in 2022. For those thinking about making the
transition from renting to buying their first home, rising rents
will remain a motivating factor even as for-sale home prices and
mortgage rates continue to climb."
2021 Realtor.com® Rental Metrics –
National
Unit
Size
|
Dec. 2021 Median
Rental Price
|
Dec. 2021 Rent
Change Over 2020
|
Average 2021 Rent
Change Over 2020
|
Average 2020 Rent
Change Over 2019
|
Overall
|
$1,781
|
19.3%
|
10.1%
|
1.9%
|
Studio
|
$1,462
|
18.6%
|
6.1%
|
-0.7%
|
1-bed
|
$1,651
|
19.3%
|
10.0%
|
1.9%
|
2-bed
|
$2,003
|
19.1%
|
11.7%
|
3.7%
|
The Streak Continues: U.S. rents hit sixth straight months of
double-digit growth
Largely attributed to winter
seasonality, the U.S. median rental price posted a smaller monthly
gain in December compared to earlier in 2021. However, December
rental trends also reflect a shift in demand towards smaller rental
units common to major metropolitan centers. For instance,
two-bedroom rents posted monthly declines for the first time since
November2020 in December, after skyrocketing earlier in 2021
as workplace flexibility enabled some big city renters to
explore smaller markets offering more space for their money. Now
that more workers are returning to downtown offices, studio rents
accelerated at a faster pace than larger unit rents in December and
helped overall rents remain at a double-digit percentage point
higher than in 2020 for the sixth month in a row.
- In December, the U.S. median rental price grew 19.3%
year-over-year to $1,781, which was
relatively flat from last month's level ($1,780).
- Larger unit rents posted smaller monthly gains than seen from
October to November, but grew by double-digits over
December 2020. Among 0-2 bedroom
units, the median rental price for one-bedrooms grew at the fastest
annual pace, up 19.3% to $1,651.
- December rental prices for two bedroom units ($2,003) increased 19.1% year-over-year, coming
in slightly below the November median ($2,005).
- The median studio rental price continued to accelerate in
December, rising 18.6% over the same month in 2020 to a two-year
high of $1,462.
A Major Comeback: National rents closed out 2021 strong,
after a slow start
U.S. rental markets took consumers on a
wild ride over the course of 2021. Following shallow growth in the
first two months of the year, rents began to recover before hitting
a double-digit pace in summer which continued through end-of-year.
The early gains were led by secondary markets and larger units,
driven by the migration of big city renters to smaller rental
markets where budgets stretched further. Even as the big city
rental recovery began, as reported in September, the 2021 surge in
secondary rental market popularity and prices continued, and helped
offset slower early-year growth. As a result, the average pace of
growth in overall U.S. rents closed out the year at more than
five-times faster than in 2020.
- Nationally, rent growth hit a double-digit pace in 2021, up an
average of 10.1% – 5.3 times higher than the 2020 rate (+1.9%) and
above the Realtor.com® Forecast for 2022 (+7.1%).
- With demand for space rising during COVID, larger unit rents
posted the biggest annual gains among unit sizes in 2021, each
rising at a double-digit pace. Over the past 12 months, average
year-over-year rent growth for two-bedroom and one-bedroom units
was 11.7% (+$196) and 10.0% (+$139), respectively.
- Common to big cities that saw an exodus of renters earlier in
the pandemic, studio rents declined at the beginning of 2021.
However, studio rents began to recover in the second half of the
year as downtown offices and attractions began to reopen, and ended
2021 at an average annual growth rate of 6.1% (+$76).
2021's Cinderella
Story: Remote work drives skyrocketing rents in secondary
markets
The real "Cinderella story" of the 2021
rental market was among smaller secondary metros. The
year's fastest-growing rental markets were all outside
of big tech cities, with the top 10 led by the relatively
affordable Los Angeles alternative
of Riverside, Calif. Rental
popularity in these secondary metros was driven by a number of
COVID-related trends in consumer preferences, including the need
for more space and easier access to the outdoors. As a result, 2021
annual rent growth across the top 10, on average, was two times
faster than the national rate.
- In 2021, rents increased by an average of 20.7% in the top 10
markets, led by Riverside
(+28.5%), Tampa (+25.6%),
Memphis (+23.0%), Miami (+22.1%) and Sacramento (+19.5%). Additionally, December
data shows many of these markets remained among the fastest-growing
metro areas through end-of-year.
- A key trend driving rental demand and price growth in these
areas is rising workplace flexibility. In half of
2021's fastest-growing rental markets, LinkedIn data
shows the share of job seekers applying for remote work roles is
higher than national average (25.2%)1, led by
Tampa (29.6%).
- Comparatively, big tech cities dominated the 2021 list of
slowest-growing rental markets, with average rent growth across
these 10 metros ending the year at just 2.0%. However, 2021 data
shows big city rents recovered significantly from sharp drops
earlier in the year, with average rents declining in just two of
the bottom 10. (see table below)
Hale added, "Regardless of where you live, renting
is generally more expensive now than in prior years. However,
expected income growth could give renters more negotiating power –
especially if you continue to have workplace flexibility. Those
able to work big city jobs while living in secondary metros are
still likely to find more affordable rental options than in the
biggest tech cities. Take the example of Tampa – despite being one of the
fastest-growing rental markets in 2021, the December median rental
price ($2,038) remained significantly
lower than in a big northeastern city like New York ($2,670)."
Whether renters are interested in making a move to a new rental
unit in their area or in another state, they can use the
Realtor.com® Rentals App to fine-tune their
search and set up alerts about new rental listings that match their
criteria. For renters interested in making the transition to buying
their first home, the Realtor.com® Rent vs. Buy
Calculator provides helpful tools for helping them to assess
the many financial factors and make the right decision for their
families and budgets.
2021 Realtor.com® Rental Metrics – Metros with the
Fastest and Slowest Rent Growth
Fastest
Growth
|
Slowest
Growth
|
Rank
|
Metro
|
Average 2021 Rent
Change Over 2020
|
Rank
|
Metro
|
Average 2021 Rent
Change Over 2020
|
1
|
Riverside,
Calif.
|
28.5%
|
1
|
San Francisco,
Calif.
|
-2.5%
|
2
|
Tampa,
Fla.
|
25.6%
|
2
|
San Jose,
Calif.
|
-0.3%
|
3
|
Memphis,
Tenn.
|
23.0%
|
3
|
Chicago,
Ill.
|
0.4%
|
4
|
Miami,
Fla.
|
22.1%
|
4
|
Boston,
Mass.
|
0.7%
|
5
|
Sacramento,
Calif.
|
19.5%
|
5
|
New York,
N.Y.
|
1.4%
|
6
|
Las Vegas,
Nev.
|
18.9%
|
6
|
Minneapolis,
Minn.
|
2.4%
|
7
|
Phoenix,
Ariz.
|
18.8%
|
7
|
Washington,
D.C.
|
3.0%
|
8
|
San Diego,
Calif.
|
17.5%
|
8
|
Milwaukee,
Wis.
|
4.7%
|
9
|
Jacksonville,
Fla.
|
17.2%
|
9
|
Philadelphia,
Pa.
|
4.8%
|
10
|
Orlando,
Fla.
|
16.3%
|
10
|
Seattle,
Wash.
|
5.2%
|
Dec. 2021
Realtor.com® Rental Metrics – 50 Largest U.S. Metro
Areas
Metropolitan
Statistical Area
|
Overall Median
Rent
|
Overall
Rent
Y/Y
|
Studio Median
Rent
|
Studio Rent
Y/Y
|
1-br Median
Rent
|
1-br Rent
Y/Y
|
2-br Median
Rent
|
2-br Rent
Y/Y
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,808
|
21.8%
|
$1,611
|
18.9%
|
$1,689
|
23.7%
|
$2,010
|
21.4%
|
Austin-Round Rock,
Texas
|
$1,717
|
28.7%
|
$1,443
|
30.6%
|
$1,568
|
29.2%
|
$1,916
|
29.0%
|
Baltimore-Columbia-Towson, Md.
|
$1,769
|
13.6%
|
$1,595
|
24.4%
|
$1,706
|
14.0%
|
$1,873
|
13.0%
|
Birmingham-Hoover,
Ala.
|
$1,249
|
22.2%
|
$1,083
|
7.2%
|
$1,191
|
22.1%
|
$1,313
|
24.2%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,726
|
18.5%
|
$2,470
|
28.6%
|
$2,535
|
18.6%
|
$3,000
|
15.3%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,435
|
20.1%
|
$1,098
|
38.6%
|
$1,295
|
21.0%
|
$1,615
|
19.6%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,598
|
21.3%
|
$1,456
|
23.2%
|
$1,475
|
20.4%
|
$1,755
|
17.9%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,800
|
11.6%
|
$1,360
|
8.5%
|
$1,798
|
15.3%
|
$2,000
|
5.5%
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,400
|
15.9%
|
$1,175
|
17.5%
|
$1,346
|
17.8%
|
$1,562
|
17.8%
|
Cleveland-Elyria,
Ohio
|
$1,352
|
16.9%
|
$1,000
|
26.7%
|
$1,319
|
19.9%
|
$1,450
|
13.9%
|
Columbus,
Ohio
|
$1,247
|
14.1%
|
$1,008
|
12.1%
|
$1,150
|
15.1%
|
$1,385
|
15.6%
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,590
|
23.4%
|
$1,353
|
25.8%
|
$1,456
|
24.9%
|
$1,893
|
24.7%
|
Denver-Aurora-Lakewood, Colo.
|
$1,901
|
17.9%
|
$1,598
|
18.3%
|
$1,781
|
19.0%
|
$2,192
|
18.2%
|
Detroit-Warren-Dearborn, Mich.
|
$1,400
|
12.1%
|
$1,150
|
15.1%
|
$1,240
|
18.2%
|
$1,529
|
11.7%
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,729
|
15.5%
|
$1,328
|
13.0%
|
$1,611
|
13.3%
|
$2,025
|
13.0%
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,389
|
15.9%
|
$1,312
|
19.5%
|
$1,263
|
17.3%
|
$1,570
|
17.0%
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,226
|
12.0%
|
$1,023
|
6.0%
|
$1,117
|
8.8%
|
$1,356
|
12.9%
|
Jacksonville,
Fla.
|
$1,583
|
29.0%
|
$1,380
|
29.9%
|
$1,476
|
30.3%
|
$1,728
|
31.2%
|
Kansas City,
Mo.-Kan.
|
$1,225
|
11.2%
|
$989
|
10.5%
|
$1,100
|
10.5%
|
$1,455
|
12.4%
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,631
|
29.8%
|
$1,126
|
32.4%
|
$1,505
|
30.3%
|
$1,769
|
29.4%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,952
|
18.1%
|
$2,252
|
18.5%
|
$2,707
|
19.9%
|
$3,467
|
18.4%
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,181
|
16.2%
|
$938
|
3.8%
|
$1,074
|
12.1%
|
$1,322
|
16.7%
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,324
|
29.4%
|
$1,173
|
19.6%
|
$1,317
|
33.0%
|
$1,371
|
28.3%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,850
|
49.8%
|
$2,300
|
44.4%
|
$2,507
|
47.1%
|
$3,234
|
44.1%
|
Milwaukee-Waukesha-West Allis, Wis.
|
$1,527
|
11.0%
|
$1,195
|
9.1%
|
$1,403
|
8.0%
|
$1,758
|
11.6%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,535
|
6.7%
|
$1,238
|
6.8%
|
$1,448
|
5.7%
|
$1,870
|
10.3%
|
Nashville-Davidson–Murfreesboro–Franklin,
Tenn,
|
$1,693
|
23.6%
|
$1,676
|
23.5%
|
$1,600
|
24.1%
|
$1,815
|
25.1%
|
New Orleans-Metairie,
La.
|
$1,774
|
18.3%
|
$995
|
-16.8%
|
$1,595
|
13.9%
|
$2,125
|
25.0%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
$2,670
|
6.8%
|
$2,275
|
11.9%
|
$2,443
|
3.1%
|
$2,980
|
3.2%
|
Oklahoma City,
Okla.
|
$949
|
15.7%
|
$785
|
5.4%
|
$896
|
20.6%
|
$1,008
|
13.6%
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,807
|
34.1%
|
$1,602
|
28.5%
|
$1,675
|
34.9%
|
$2,048
|
41.4%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$1,787
|
11.9%
|
$1,427
|
13.0%
|
$1,703
|
10.7%
|
$2,000
|
11.1%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,800
|
26.7%
|
$1,435
|
38.3%
|
$1,598
|
28.6%
|
$2,095
|
27.9%
|
Pittsburgh,
Pa.
|
$1,500
|
18.5%
|
$1,275
|
31.4%
|
$1,458
|
22.5%
|
$1,613
|
13.4%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,759
|
16.8%
|
$1,424
|
13.7%
|
$1,705
|
17.0%
|
$1,985
|
17.0%
|
Providence-Warwick,R.I.-Mass.
|
$2,000
|
15.9%
|
$1,650
|
3.8%
|
$1,755
|
11.4%
|
$2,263
|
19.0%
|
Raleigh,
N.C.
|
$1,532
|
23.6%
|
$1,393
|
22.5%
|
$1,417
|
25.1%
|
$1,682
|
23.1%
|
Richmond,
Va.
|
$1,419
|
18.2%
|
$1,153
|
17.2%
|
$1,316
|
22.3%
|
$1,558
|
19.3%
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,550
|
27.2%
|
$1,583
|
18.9%
|
$2,150
|
23.4%
|
$2,832
|
23.4%
|
Rochester,
N.Y.
|
$1,333
|
11.1%
|
$945
|
5.0%
|
$1,200
|
8.1%
|
$1,495
|
10.9%
|
Sacramento–Roseville–Arden-Arcade, Calif.
|
$2,103
|
21.6%
|
$1,945
|
20.4%
|
$1,973
|
21.4%
|
$2,239
|
21.0%
|
San Antonio-New
Braunfels, Texas
|
$1,306
|
19.4%
|
$1,153
|
17.9%
|
$1,204
|
20.5%
|
$1,502
|
22.1%
|
San Diego-Carlsbad,
Calif.
|
$2,970
|
29.3%
|
$2,326
|
21.2%
|
$2,718
|
29.4%
|
$3,350
|
27.8%
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,956
|
11.1%
|
$2,433
|
19.1%
|
$2,760
|
12.8%
|
$3,490
|
10.7%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$2,998
|
13.6%
|
$2,463
|
23.9%
|
$2,771
|
15.9%
|
$3,410
|
15.0%
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,110
|
21.9%
|
$1,728
|
26.7%
|
$2,069
|
22.5%
|
$2,563
|
25.1%
|
St. Louis,
Mo.-Ill.
|
$1,262
|
9.7%
|
$975
|
1.3%
|
$1,200
|
9.1%
|
$1,388
|
11.0%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$2,038
|
35.9%
|
$1,885
|
32.9%
|
$1,840
|
37.3%
|
$2,261
|
37.0%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,503
|
18.1%
|
$1,207
|
9.1%
|
$1,428
|
14.8%
|
$1,608
|
17.8%
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$2,102
|
13.6%
|
$1,724
|
14.6%
|
$2,009
|
12.7%
|
$2,448
|
12.7%
|
Methodology
Rental data as of December 2021 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.
Note: Realtor.com® rental data history begins
March 2019. As a result, the average
year-over-year growth in 2020 is estimated based on rent data
between March 2020 and December 2020.
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people can learn about their options, trust in the transparency of
information provided to them, and get services and resources that
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visit Realtor.com®.
Media Contact
rachel.conner@move.com
1 The 118-market average used by LinkedIn, which
does not directly match Realtor.com® geographic areas
used in this release.
View original
content:https://www.prnewswire.com/news-releases/realtorcom-december-rental-report-rental-market-wraps-up-2021-with-price-growth-thats-5-3-times-faster-than-in-2020--301468347.html
SOURCE Realtor.com