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Data, Rentals
May 22, 2024
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Jiayi Xu
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Danielle Hale
Highlights
- April 2024 marks the ninth year-over-year rent decline in a row for zero- to two-bedroom properties observed since trend data began in 2020. Asking rents dipped by $12, or 0.7%, year over year.
- The median asking rent in the 50 largest metros registered at $1,723, up by $16 from last month but still down $33 from its August 2022 peak.
- Median rent declined in all size categories with larger declines in smaller-sized units: Studio: $1,443, down $25 (-1.7%) year over year; one-bed: $1,601, down $22 (-1.4%) year over year; two-bed: $1,916, down $13 (-0.7%) year over year.
- Renters in Austin, TX, experienced the largest rent relief by saving $195 per month, paying 11.5% less if they move in today compared with when rent peaked in September 2022. However, renters in Indianapolis, IN, Milwaukee, WI, and Minneapolis, MN, face new record high rents.
In April 2024, the U.S. median rent continued to decline year over year for the ninth month in a row, down 0.7% for zero- to two-bedroom properties across the top 50 metros, a pace lower than the -1.1% seen in March 2024. The median asking rent was $1,723, up by $16 from last month following a typical seasonal trend
Despite the nine months of decline, the U.S. median rent was just $33 (-1.9%) less than the peak in August 2022. Notably, it was still $316 (22.5%) higher than the same time in 2019 (before the COVID-19 pandemic).
Rising shelter costs have been a major driver of the overall rate of inflation, and while the consumer price index shelter measure differs from the Realtor.com rent methodology, the latter can inform the likely path for the former, an issue we discussed in a previous rental report.
While the year-over-year change in market asking rents tracked by Realtor.com has been negative since last August, the decline appears to have bottomed out in February (-1.3%) and has begun to slow down since then. This deceleration trend could make it difficult to see further improvement in the overall rate of inflation, complicating the Fed’s policy decision and underscoring the need for additional housing construction to alleviate the supply shortage that is contributing to higher costs.
Figure 1: Rents Decline Again, but Nationwide Rent Is Just 1.9% Below 2022 Peak
All units saw rent declines
In April 2024, the median asking rent for two-bedroom units dropped 0.7%, a dip slower than the 0.9% seen in the past month, marking the 11th consecutive month of annual declines. The median rent for two-bedrooms was $1,916 nationally, $37 (-1.9%) lower than the peak in August 2022. Nevertheless, larger unit rents had the highest growth rate over the past five years, up by $376 (24.4%).
The rent for one-bedroom units slipped 1.4% in April 2024 on a year-over-year basis, marking the 11th decline in a row and also a slower pace compared with the decline of 1.9% in March. The median rent was $1,601, $53 lower than the peak last August, but still $277 (20.9%) higher than in April 2019.
In April 2024, the median asking rent for studios fell by 1.7%, marking the eighth consecutive month of annual declines. The median rent of studios was $1,443 in April, down by $48 (-3.2%) from its peak in October 2022. Nevertheless, the median asking rent for studios was still $229 (18.9%) higher than five years ago.
Figure 2: All Units Saw Rent Declines
Table 1: National Rents by Unit Size
| Unit Size | Median Rent | Rent YoY | Rent Change – 5 years |
| Overall | $1,723 | -0.7% | 22.5% |
| Studio | $1,443 | -1.7% | 18.9% |
| 1-bed | $1,601 | -1.4% | 20.9% |
| 2-bed | $1,916 | -0.7% | 24.4% |
Renters in Austin experienced the largest rent relief when compared with the peak but still need to pay $260 more than the pre-pandemic level
While the median rent across the top 50 metros was only $33 (1.9%) lower than the national peak in August 2022, renters in specific markets have had the fortunate experience of more significant cost relief when comparing the current rent with the peak since March 2019.
In April, the median asking rent for Austin, TX, was $1,494. That was $195 (11.5%) lower than the peak rent of $1,689 in September 2022. The $195 monthly saving is equivalent to about 2.5% of a typical household’s monthly gross income in Austin.
It is not surprising to find renters in Austin experienced the largest relief given the substantial number of new multifamily homes entering the Southern market. The average rental vacancy rate in Austin was 9.0% in 2023, whereas the average rate in 2022 was 5.5%.
The median rent in Austin has been declining month over month since June 2023, a trend that continues even during the typically higher-priced spring season. A new peak for Austin in 2024 is unlikely. Even if Austin rents made a sharp about-face and surged at the highest rates observed during the past two years, they would not notch a new high in 2024, evidence of just how much rents in Austin have retrenched.
Nevertheless, the monthly rental cost at today’s level is still $260 (21.1%) higher than five years ago, putting Austin in the middle of the pack on this dimension.
Figure 3: Renters in Austin Experienced the Largest Rent Relief When Compared With the Peak but Still Need To Pay $260 More Than the Pre-Pandemic Level
Additionally, renters who move into a typical rental property in Las Vegas, NV, at today’s asking rent could save $184, equating to an 11.1% reduction compared with those who moved in during June 2022, when rent peaked at $1,665—the second-largest percentage savings among the 50 largest markets. As in Austin, renters in Las Vegas are still paying more than they did five years ago, with the median market rent up 27.8%.
Renters in San Francisco, CA, reap the third-largest savings compared with the market’s peak, and could save $303 per month, a 9.9% decrease, if they move today compared with when rent peaked in July 2022.
San Francisco is the only metro where renters pay less money than at the same time pre-pandemic. The San Francisco rental market recovered from the pandemic’s impact and reached a new high in summer 2022. However, the rise of lower-cost tech markets and softness in the tech sector have had an outsized impact in San Francisco, once more pushing rent prices downward. Consequently, tenants in San Francisco are now paying $54 less per month on rent, reflecting a decrease of 1.9% compared with five years ago.
Renters in certain Midwest metros face new record-high rents
While some renters have experienced cost relief compared with the peak, renters in certain Midwest markets are not as fortunate, facing increasing affordability challenges despite the region’s generally greater affordability.
In April, the rent in Indianapolis, IN, Milwaukee, WI, and Minneapolis, MN, hit a new record high since March 2019.
The median asking rent in Indianapolis was $1,334, marking a $57 (4.5%) increase from 12 months ago and a $369 (38.2%) increase from April 2019 (pre-pandemic).
In Milwaukee, the median asking rent stood at $1,671, reflecting a $61 (3.8%) increase from the same time last year and a $396 (31.1%) increase from the pre-pandemic level.
In Minneapolis, the median asking rent increased 2.5%, from $1,492 to $1,529, over the past 12 months. Nevertheless, the rent was only $116 (8.2%) higher than the level seen in April 2019, suggesting a relatively stable rental market.
The robust labor market in these metropolitan areas may serve as a significant driver of accelerated rent growth. As of March 2024, the unemployment rates in Indianapolis, Milwaukee, and Minneapolis were 3.7%, 3.6%, and 3.0% respectively, compared with an average unemployment rate of 3.9% in the Midwest and 3.8% across the top 50 metros.
On the supply side, the completion of new multifamily homes has been growing at a relatively slow pace, contributing to a decrease in rental vacancy rates. In Indianapolis, the average rental vacancy rate decreased from 11.0% in 2022 to 8.7% in 2023. In Milwaukee, it dropped from 5.7% in 2022 to 4.2% in 2023. However, in Minneapolis, the average rate increased from 6.8% to 7.9% between 2022 and 2023.
Moreover, the present rental prices in Cincinnati, OH, Cleveland, OH, and Chicago, IL, are all just slightly below peak levels. If the current upward trend persists, we could witness new record-high rents in the summer.
Appendix: Rental Data—50 Largest Metropolitan Areas—April 2024
| Metro | Median Rent (0-2 Bedrooms) | YOY (0-2 Bedrooms) | Peak Rent since Mar. 2019 |
| Atlanta-Sandy Springs-Alpharetta, GA | $1,611 | -5.6% | $1,767 |
| Austin-Round Rock, TX | $1,494 | -8.3% | $1,689 |
| Baltimore-Columbia-Towson, MD | $1,762 | -5.6% | $1,872 |
| Birmingham-Hoover, AL | $1,299 | 1.5% | $1,333 |
| Boston-Cambridge-Newton, MA-NH | $2,926 | -1.7% | $3,056 |
| Buffalo-Cheektowaga, NY | NA | NA | NA |
| Charlotte-Concord-Gastonia, NC-SC | $1,513 | -5.6% | $1,670 |
| Chicago-Naperville-Elgin, IL-IN-WI | $1,834 | 1.4% | $1,860 |
| Cincinnati, OH-KY-IN | $1,354 | 1.0% | $1,362 |
| Cleveland-Elyria, OH | $1,210 | 2.1% | $1,226 |
| Columbus, OH | $1,182 | -1.1% | $1,222 |
| Dallas-Fort Worth-Arlington, TX | $1,491 | -2.8% | $1,599 |
| Denver-Aurora-Lakewood, CO | $1,910 | -0.8% | $1,987 |
| Detroit-Warren-Dearborn, MI | $1,290 | 0.6% | $1,352 |
| Hartford-West Hartford-East Hartford, CT | NA | NA | NA |
| Houston-The Woodlands-Sugar Land, TX | $1,385 | -2.7% | $1,434 |
| Indianapolis-Carmel-Anderson, IN | $1,334 | 4.5% | $1,334 |
| Jacksonville, FL | $1,539 | -3.0% | $1,658 |
| Kansas City, MO-KS | $1,288 | -2.3% | $1,352 |
| Las Vegas-Henderson-Paradise, NV | $1,481 | -4.0% | $1,665 |
| Los Angeles-Long Beach-Anaheim, CA | $2,766 | -2.2% | $2,898 |
| Louisville/Jefferson County, KY-IN | $1,219 | -3.5% | $1,280 |
| Memphis, TN-MS-AR | $1,222 | -4.9% | $1,316 |
| Miami-Fort Lauderdale-West Palm Beach, FL | $2,382 | -4.3% | $2,539 |
| Milwaukee-Waukesha, WI | $1,671 | 3.8% | $1,671 |
| Minneapolis-St. Paul-Bloomington, MN-WI | $1,529 | 2.5% | $1,529 |
| Nashville-Davidson–Murfreesboro–Franklin, TN | $1,523 | -8.4% | $1,681 |
| New Orleans-Metairie, LA | NA | NA | NA |
| New York-Newark-Jersey City, NY-NJ-PA | $2,876 | 4.1% | $2,920 |
| Oklahoma City, OK | $1,006 | 0.5% | $1,023 |
| Orlando-Kissimmee-Sanford, FL | $1,677 | -5.9% | $1,810 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $1,813 | 1.5% | $1,832 |
| Phoenix-Mesa-Scottsdale, AZ | $1,540 | -4.6% | $1,684 |
| Pittsburgh, PA | $1,474 | 1.6% | $1,475 |
| Portland-Vancouver-Hillsboro, OR-WA | $1,721 | 2.5% | $1,760 |
| Providence-Warwick, RI-MA | NA | NA | NA |
| Raleigh, NC | $1,487 | -5.3% | $1,640 |
| Richmond, VA | $1,477 | -3.0% | $1,556 |
| Riverside-San Bernardino-Ontario, CA | $2,156 | -0.8% | $2,233 |
| Rochester, NY | NA | NA | NA |
| Sacramento-Roseville-Folsom, CA | $1,953 | 3.0% | $1,968 |
| San Antonio-New Braunfels, TX | $1,230 | -8.1% | $1,353 |
| San Diego-Chula Vista-Carlsbad, CA | $2,888 | -0.3% | $3,145 |
| San Francisco-Oakland-Berkeley, CA | $2,766 | -4.3% | $3,069 |
| San Jose-Sunnyvale-Santa Clara, CA | $3,318 | 3.7% | $3,344 |
| Seattle-Tacoma-Bellevue, WA | $2,017 | -0.3% | $2,132 |
| St. Louis, MO-IL | $1,318 | -1.6% | $1,373 |
| Tampa-St. Petersburg-Clearwater, FL | $1,741 | -2.5% | $1,828 |
| Virginia Beach-Norfolk-Newport News, VA-NC | $1,518 | 2.4% | $1,551 |
| Washington-Arlington-Alexandria,DC-VA-MD-WV | $2,225 | 1.3% | $2,263 |
Methodology
Rental data as of April 2024 for studio, one-bedroom, or two-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within 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.
With the release of its April 2024 rent report, Realtor.com incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics.
The new methodology is expected to yield a cleaner, more representative and more consistent measurement of rental listings and trends at both the national and local level. The methodology has been adjusted to better represent the true cost of primary housing for renters.
Most areas across the country will see minor changes with a smaller handful of areas seeing larger updates. As a result of these changes, the rental data released since April 2024 will not be directly comparable with previous releases and Realtor.com economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology.
