Median monthly rent in the U.S. fell below $2,000 last month, but remains high compared to just two years ago, a new report found.
Median market rents fell to $1,978 in December, down 1.41% from November and the lowest median price since April, according to a January 2023 report published by . rent. Rents increased 4.77% year-on-year, the lowest annual rate of change since July 2021.
However, December rents remain high, with double-digit rent growth for the 11th straight month ending in September last year. The December renter was paying $329 more per month compared to December 2020, continuing his double-digit percentage increase in many markets.
“In the first few months [2022], rent growth has quadrupled,” CoreLogic’s deputy chief economist Thelma Hepp said of general rental trends. So, I think the slowdown will continue until we hit the long-term average of about 3% to 4% rent growth. “
Better rental deals in the west
Nationwide, rents slowed year-on-year, but the report found that rents actually contracted in 10 states in December, with four western states leading the pack.
The biggest decline for the year was in Idaho, where rents have fallen 5.4% since December 2021. Nevada was next in his downfall of 2.7%. Arizona decreased by 2.5%. Oregon dropped her 2.4%.
According to another report from CoreLogic, some western cities that were popular during the pandemic, such as Las Vegas and Phoenix, saw their slowest year-over-year growth in November. Phoenix rents have fallen 5% since December 2021, according to a Rent. report.
“Regions that have grown very rapidly and are now slowing or declining have seen growth rates driven by immigration from very expensive regions,” Hepp said. Arizona. “
“We are also seeing a significant slowdown in the rate of immigration to these regions,” Hepp added.
Six other states that recorded annual decreases in rents included Virginia, which fell 1.2%. Maryland he fell 1.1%. Pennsylvania lost 0.7%. Georgia decreased by 0.6%. Minnesota he fell 0.3%. Washington decreased by 0.1%.
Southern States Still See Rent Growth
Six of the 10 states with the highest December annual rent volatility were in the South, where the relatively low cost of living attracted more arrivals than other states. Florida, which ranked number one for rent growth, saw rents rise 23.9% from the previous year, according to the New York Times. rent.
Other popular Southern states with rents up 10% or more include Arkansas, up 17.5%. Delaware he rose 14.5%. Tennessee rose 14.2%. Mississippi rose 13.2%. North Carolina rose 12.2%.
New York recorded the second highest annual rent growth at 20.1%. But the state also recorded its biggest monthly decline in December, at 5.15%. According to one expert, this may be because New York City has hit a peak in rents.
StreetEasy economist Kenny Lee, who is not affiliated with The Rent, said: report.
Rent tends to stagnate
The final outcome of 2023 rent growth (some lower, some higher, or flat) is up for debate. many predictions Rental growth is expected to slow significantly from the runaway trajectory of the past two years.
“If you look at what’s going on in the rental market, it’s probably going to plateau after a few months of no growth before it picks up again” and return to normal growth levels.
Rebecca is a reporter at Yahoo Finance.
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