Realtor.com® September Rental Report: A Tale of Two Regions - Midwest Rents Keep Rising, While Southern Rents Decline
- Rents grew fastest in Cincinnati, St Louis, and Minneapolis, while fastest declines occurred in Nashville, Dallas and Austin, Texas
- Nationally, rents dropped across all unit sizes, marking 14 consecutive months of declines
SANTA CLARA, Calif., Oct. 16, 2024 /PRNewswire/ -- Despite a nationwide trend of overall rent declines, the rental market is experiencing a regional divide, according to the Realtor.com® September Rental Report released today. While rents dropped in many parts of the country, eight of the 10 Midwestern markets in the 50-metro report saw year-over-year rent increases in September. In contrast, among the markets with the steepest rent declines last month, 8 out of 10 were in the South, mostly driven by a surge in new multi-family housing developments.
"The balance between housing supply and demand is a key factor shaping regional rent patterns. In markets across the South, increased multi-family inventory is easing competition among renters and driving down prices. On the other hand, in the Midwest, where demand has still outpaced supply, we continue to see rising rents," said Danielle Hale, chief economist at Realtor.com®. "Nationally, the relative stability in rent prices should translate into slower shelter inflation in the months ahead, easing one of the biggest recent drivers of price increases."
Strong affordability, employment drives Midwest rent growth
Overall, the top 10 markets with the fastest year-over-year growth in September were spread across the country, with one metro in the Northeast, three in the South, three in the Midwest, and three in the West. However, the Midwest continues to benefit from strong affordability and a robust labor market. Eight of the 10 Midwestern markets in Realtor.com®'s report saw year-over-year rent increases in September, with Cincinnati leading the way with a 3.4% annual growth rate. St. Louis (2.6%) and Minneapolis (1.9%) also ranked among the top 10 fastest growing markets. Only Chicago (-2.6%) and Detroit (-0.3%) experienced rent declines.
Southern markets lead in rent declines
Southern metros dominated the list of markets with the largest annual rent drops. In fact, eight out of the the top 10 metros with steepest declines were in the South. Nashville, Tenn., saw the sharpest decline (-4.8%). Other Southern cities on the list include Dallas; Austin, Texas; Birmingham, Ala.; Memphis, Tenn; Atlanta; Miami; and San Antonio. The rapid growth of new multi-family housing in these areas is cooling the market, providing much-needed relief for renters.
Top 10 Markets with the Fastest Rent Growth & Declines – September 2024
Fastest Rent Growth | Median | YOY | Fastest Rent Declines | Median | YOY |
Cincinnati, OH-KY-IN | $1,393 | 3.4 % | Nashville-Davidson-Murfreesboro- Franklin, TN | $1,578 | -4.8 % |
Washington-Arlington-Alexandria, DC-VA-MD-WV | $2,293 | 2.9 % | Dallas-Fort Worth-Arlington, TX | $1,475 | -4.0 % |
New York-Newark-Jersey City, NY-NJ-PA | $2,973 | 2.8 % | Denver-Aurora-Lakewood, CO | $1,889 | -4.0 % |
St. Louis, MO-IL | $1,361 | 2.6 % | Austin-Round Rock-Georgetown, TX | $1,522 | -3.7 % |
San Jose-Sunnyvale-Santa Clara, CA | $3,377 | 2.6 % | Birmingham-Hoover, AL | $1,251 | -3.5 % |
Louisville/Jefferson County, KY-IN | $1,287 | 2.5 % | Memphis, TN-MS-AR | $1,227 | -3.5 % |
Sacramento-Roseville-Folsom, CA | $1,954 | 2.4 % | San Diego-Chula Vista-Carlsbad, CA | $2,828 | -3.4 % |
Minneapolis-St. Paul-Bloomington, MN-WI | $1,555 | 1.9 % | Atlanta-Sandy Springs-Alpharetta, GA | $1,610 | -3.2 % |
Oklahoma City, OK | $1,037 | 1.9 % | Miami-Fort Lauderdale-Pompano Beach, FL | $2,372 | -3.1 % |
Portland-Vancouver-Hillsboro, OR-WA | $1,737 | 1.9 % | San Antonio-New Braunfels, TX | $1,268 | -3.1 % |
Rents decline across all unit sizes
Nationally, September marks the 14th consecutive month of year-over-year rent declines for 0-2 bedroom units. The median asking rent dipped by $8 or -0.5% from the previous year, to $1,743. Despite the overall decline, the U.S. median rent remains just $17 (-1.0%) below its August 2022 peak. Notably, while median rents are still $286 (19.6%) higher than in September 2019 (pre-pandemic), this increase is nearly inline with the rise in overall consumer prices (up 22.7% over the same period) and pales in comparison to the 50.8% increase in median price-per-square-foot of for-sale home listings, also for the same five year period.
Rent decreases were seen across all unit sizes in September, with smaller units experiencing the steepest drops. The median rent for studios fell -2.3% year-over-year to $1,442, a -3.2% drop from its October 2022 peak but 12.7% higher than five years ago. The median rent for one-bedrooms fell -0.5% to $1,623, the 16th consecutive year-over-year drop. Two-bedroom units fell by -0.4% to $1,930, the 16th straight month of declines. These larger units had the highest growth rate over the past five years, rising by 21.4%.
Unit Size | Median Rent | Rent YoY | Rent Change – 5 years (Sept 2019) |
Overall | $1,743 | -0.5 % | +$286 (+19.6%) |
Studio | $1,442 | -2.3 % | +$162 (+12.7%) |
1-bed | $1,623 | -0.5 % | +$247 (+18.0%) |
2-bed | $1,930 | -0.4 % | +$340 (+21.4%) |
50 Largest Metropolitan Areas – September 2024
Metro | Median Rent | YOY |
Atlanta-Sandy Springs-Alpharetta, GA | $1,610 | -3.2 % |
Austin-Round Rock-Georgetown, TX | $1,522 | -3.7 % |
Baltimore-Columbia-Towson, MD | $1,831 | -0.6 % |
Birmingham-Hoover, AL | $1,251 | -3.5 % |
Boston-Cambridge-Newton, MA-NH | $2,975 | -0.8 % |
Buffalo-Cheektowaga, NY | NA | NA |
Charlotte-Concord-Gastonia, NC-SC | $1,536 | -2.9 % |
Chicago-Naperville-Elgin, IL-IN-WI | $1,817 | -2.6 % |
Cincinnati, OH-KY-IN | $1,393 | 3.4 % |
Cleveland-Elyria, OH | $1,237 | 0.6 % |
Columbus, OH | $1,217 | 1.2 % |
Dallas-Fort Worth-Arlington, TX | $1,475 | -4.0 % |
Denver-Aurora-Lakewood, CO | $1,889 | -4.0 % |
Detroit-Warren-Dearborn, MI | $1,328 | -0.3 % |
Hartford-East Hartford-Middletown, CT | NA | NA |
Houston-The Woodlands-Sugar Land, TX | $1,375 | -3.0 % |
Indianapolis-Carmel-Anderson, IN | $1,318 | 0.5 % |
Jacksonville, FL | $1,552 | -2.4 % |
Kansas City, MO-KS | $1,357 | 0.7 % |
Las Vegas-Henderson-Paradise, NV | $1,493 | -1.1 % |
Los Angeles-Long Beach-Anaheim, CA | $2,891 | 0.0 % |
Louisville/Jefferson County, KY-IN | $1,287 | 2.5 % |
Memphis, TN-MS-AR | $1,227 | -3.5 % |
Miami-Fort Lauderdale-Pompano Beach, FL | $2,372 | -3.1 % |
Milwaukee-Waukesha, WI | $1,675 | 1.6 % |
Minneapolis-St. Paul-Bloomington, MN-WI | $1,555 | 1.9 % |
Nashville-Davidson--Murfreesboro--Franklin, TN | $1,578 | -4.8 % |
New Orleans-Metairie, LA | NA | NA |
New York-Newark-Jersey City, NY-NJ-PA | $2,973 | 2.8 % |
Oklahoma City, OK | $1,037 | 1.9 % |
Orlando-Kissimmee-Sanford, FL | $1,714 | -0.8 % |
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $1,808 | -0.2 % |
Phoenix-Mesa-Chandler, AZ | $1,544 | -3.0 % |
Pittsburgh, PA | $1,480 | 1.1 % |
Portland-Vancouver-Hillsboro, OR-WA | $1,737 | 1.9 % |
Providence-Warwick, RI-MA | NA | NA |
Raleigh-Cary, NC | $1,557 | -0.3 % |
Richmond, VA | $1,512 | -0.6 % |
Riverside-San Bernardino-Ontario, CA | $2,139 | -1.2 % |
Rochester, NY | NA | NA |
Sacramento-Roseville-Folsom, CA | $1,954 | 2.4 % |
San Antonio-New Braunfels, TX | $1,268 | -3.1 % |
San Diego-Chula Vista-Carlsbad, CA | $2,828 | -3.4 % |
San Francisco-Oakland-Berkeley, CA | $2,808 | -3.1 % |
San Jose-Sunnyvale-Santa Clara, CA | $3,377 | 2.6 % |
Seattle-Tacoma-Bellevue, WA | $2,019 | -2.4 % |
St. Louis, MO-IL | $1,361 | 2.6 % |
Tampa-St. Petersburg-Clearwater, FL | $1,720 | -2.2 % |
Virginia Beach-Norfolk-Newport News, VA-NC | $1,544 | 0.1 % |
Methodology
Rental data as of September 2024 for studio, 1-bedroom, or 2-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 top 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
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: Sara Wiskerchen, press@realtor.com
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