US renters saw prices fall across 11 major markets in January, ultimately lowering rents. New data from online realtor Redfin.
Median asking rents fell to $1,942 last month from a 2022 peak of $2,053. Redfin’s analysis of 50 metropolitan areas shows that year-over-year rent growth is still up 2.4% overall, but he’s down significantly from a peak of 17.5% in March 2022. increase.
Only four cities recorded double-digit rent growth in January 2022 compared to 38 cities in January 2021.
The number of cities with price cuts also continues to grow, from two a year ago to 11 in January. Here are the rent reductions at these locations:
- Phoenix: -6.7%
- Oklahoma City: -6.3%
- New Orleans: -5.2%
- Minneapolis: -5.1%
- Houston: -4.9%
- Baltimore: -4.6%
- Birmingham, Alabama: -3.4%
- Chicago: -3.0%
- Virginia Beach, Virginia: -1.8%
- Seattle: -1.0%
- Austin, Texas: -0.4%
Rent growth has slowed sharply as demand slows and supply rises, according to Redfin.
Housing formation — a measure of the number of households created — is also slowing. Likely due to economic uncertainty and rising inflationThis means fewer people are moving themselves, such as young people living with their parents to save money.
The trend of slowing price growth is likely to continue. Nationwide rental vacancy rate is expected to rise More rentals hit the market in the coming months, which could put downward pressure on prices.
“We’re watching closely to see if rents start to fall year on year, which hasn’t happened since the start of the pandemic, so it could be a welcome relief for renters,” said Darryl Fairweather, chief economist at Redfin. Let’s do it,” he said.
The January rent prices for this study are based on Rent.com’s listing of 20,000 apartments, covering 50 metropolitan areas in the country.
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https://www.cnbc.com/2023/02/15/us-cities-where-rent-prices-fell-most-in-january.html U.S. cities where rents fell the most in January