The monthly report reveals significant rental price drops throughout much of the country, according to Zumper.
National one-bedroom median rent is down 0.8 percent over last month, to $1,491 and the two-bedroom median is down 0.7 percent to $1,832.
“ More than half the cities on our list posted month-over-month declines and 19 cities remained flat, leaving just 20 percent of Zumper’s top 100 list with month-over-month increases. This slowdown is showing up in our year-over-year figures, too: After 12 straight months of double-digit year-over-year jumps, the national median is up a slightly more reasonable 9.2 percent over October of last year,” the report says.
Some highlights of the report
- Boston surpassed San Francisco to become second most expensive city in the United States—thanks, in part, to especially low supply in Boston (plus a slower pandemic rebound in San Francisco).
- Both one- and two-bedroom prices are down at a national level. It’s the first time in two years both markers have declined in tandem.
- More than half the cities on Zumper’s list posted month-over-month declines and 19 cities remained flat, leaving just 20 percent of the top 100 list with month-over-month increases.
- Several factors are causing prices to slow—including rising vacancy rates in some markets, a return to more typical seasonal moving patterns and, above all, fear of recession. In response to a recent Zumper survey, 76.2 percent of U.S. respondents said they think we’re in a recession.
The report says the reversal of widespread price hikes is fueled by several factors, including rising vacancy rates in some markets, a return to more typical seasonal moving patterns and, above all, fear of recession.
In response to a recent Zumper survey, 76.2 percent of U.S. respondents said they “think we’re in a recession. Since high interest rates and inflation continue pushing potential buyers out of the market, we’re still seeing relatively strong competition for rentals and therefore don’t expect drastic price drops until supply and demand become more closely aligned. However, we do expect a significant amount of new supply will finally hit the market over the next six months, putting pressure on property owners to compete for residents and driving prices down even more.”
“In many metro areas, declining prices are actually a correction to prices that’d become overly inflated,” Zumper CEO Anthemos Georgiades said in a release.
“We saw historic levels of migration throughout the pandemic, as people switched to working from home and re-imagined their living situations. Now—with a turbulent, unpredictable economy causing fear of recession—migrations are slowing, occupancy rates are falling and rent prices are following suit.”