Despite overall rent declines nationwide, the regional divide continues to be prevalent, according to Realtor.com’s September Rental Report. Eight out of the 10 Midwest markets in the 50-metro report experienced year-over-year rent increases last month, while eight out of the top 10 metros with the steepest declines were in Southern markets with a surge of new multifamily deliveries.
“The balance between housing supply and demand is a key factor shaping regional rent patterns. In markets across the South, increased multifamily inventory is easing competition among renters and driving down prices. On the other hand, in the Midwest, where demand has 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.”
Key findings from the September report include:
- Nationwide year-over-year rent declines for zero- to two-bedroom units were seen for the 14th consecutive month;
- The median asking rent dropped by -0.5% or $8 year over year to $1,743. Despite the decline, the median rent nationwide remains just -1% or $17 below the August 2022 peak;
- Rent declines were seen across all unit sizes, with smaller apartments experienced the steepest drops. The median rent for a studio decreased -2.3% year over year to $1,442, a -3.2% drop from the October 2022 peak;
- Cincinnati tops the list for the highest year-over-year rent growth at 3.4%, followed by Washington, D.C., at 2.9%; New York at 2.8%; and St. Louis and San Jose, California, both at 2.6%; and
- Nashville, Tennessee, saw the steepest year-over-year decline at -4.8%. Dallas and Denver both came in at -4%, followed by Austin, Texas, at -3.7% and Birmingham, Alabama, and Memphis, Tennessee, both at -3.5%.
