Published by REALTOR.com | January 9, 2023
While Realtor.com economists predict that, nationally, rental prices will continue climbing in 2023, they expect the days of double-digit hikes are likely over.
The rental market appears to have hit an inflection point—and not a moment too soon for many Americans who have been squeezed tight by record-setting price increases over the past few years.
Finally, the steady drumbeat of steep and often untenable increases in leases across the U.S. is slowing, and rents have even begun falling in many of the nation’s hottest real estate markets. Those declining prices are welcome news for renters who have been through the wringer. Rental prices have risen more than 20% over the past three years—while their earnings increased by only about 10%, according to Realtor.com® and U.S. Census Bureau data.
While Realtor.com economists predict that, nationally, rental prices will continue climbing in 2023, they expect the days of double-digit hikes are likely over.
As of November, rental prices in nine of the 50 largest metropolitan areas are showing year-over-year declines. That’s up from seven of the 50 largest metros just one month prior, as the national rental market correction continues. And for the metros that already saw rents turning south before November, prices dropped below October prices. That’s a steeper dip than just the typical seasonal declines, suggesting a deepening trend.
The data comes from the most recent Realtor.com rental report, which is compiled using the site’s rental listings.
The places where rents are falling most are America’s Sun Belt cities, in the West and the South, where the climate is warmer and, in many cases, housing has traditionally been more affordable.
