Rent prices continue to decline gradually across much of the United States, according to the November rent report from Zumper.
Nationally, the median price for a one-bedroom is flat over last month; the two-bedroom median fell 0.4 percent. Nearly half the cities on Zumper’s list posted decreased or flat one-bedroom prices compared to last month; the two-bedroom median is down or flat in 60 percent of Zumper top 100 cities.
“We’re seeing pandemic trends begin to unwind, and unwind quickly, as renters hunker down in anticipation of a recession,” Zumper CEO Anthemos Georgiades said in a release.
“Over the last two years we saw unprecedented rises in rent prices driven by a booming economy, low interest rates, a one-off spike in demand post vaccines, and supply chain issues that delayed new units coming to market. Now—with inflation and interest rates high and the labor market beginning to tighten—Americans are holding off on major economic decisions. Household formation has paused and even inverted, driving demand down and cooling off rent prices.”
Metros beginning to see rent prices leveling off
Several metros accustomed to substantial, sustained price increases are beginning to level off: Median one-bedroom rent is down 2.9 percent in Nashville, 2 percent in Boston and 1.8 percent in New York City.
One-bedroom rent in Tulsa, OK—which previously saw big price hikes thanks to an incentive program to lure remote workers—is down a whopping 6.3 percent over last month. Fresno, CA, dropped 16 spots this month and is now in the bottom half of our list with a median one-bedroom rent of $1,330.
What is this happening?
- Recession fears and diminishing occupancy are helping nudge rental prices down across much of the country.
- Pandemic-era trends are beginning to unwind, especially in areas that previously welcomed large numbers of new residents thanks to work-from-home policies. This reversal is especially evident across Arizona.
- Boston and San Francisco are now tied for second most expensive city in the country, with New York showing no signs of relinquishing its No. 1 spot.