US rents continue to rise. Perhaps on the bright side, they’re not rising quite as fast as they used to to a new report from Broker.com.
The median rent for a two-bedroom studio in America’s 50 largest metropolitan areas reached $1,849 in May, hitting the highest price in Realtor.com’s data history after rising 15.5% compared to May 2021, said Realtor.com.
In fact, despite median rents setting new records for 15 consecutive months, May’s annual rental growth rate was the slowest Realtor.com has recorded since September 2021. And the nationwide median rent of $2,000 a month that Realtor.com previously forecast for August could now be delayed until October if prices continue to rise at the same rate. If rents slow even further, the $2,000 rent may not become a reality until 2023.
““Rent price increases are slowly losing momentum, also because incomes cannot keep up even in the strong labor market.””
“There is no question that renters are faced with sky-high prices. And with inflation rising, reflecting price hikes for both rent and everyday expenses, many renters are feeling the strain on their finances,” said Danielle Hale, Realtor.com’s chief economist in an opinion. “Nonetheless, our May data suggests rental growth is losing some of its momentum, in part because incomes are struggling to keep up, even in a strong labor market.”
(Realtor.com is operated by News Corp NWSA,
subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp. is)
However, slowing price gains shouldn’t be much of a relief for struggling tenants in the short term. Average housing costs still far exceed average income growth in the country, Realtor.com found. And households are also having to contend with higher gas and food prices.
Among the cities with the most dramatic year-over-year median rent increases in May were Miami at about 46%, Orlando at about 28%, and the metropolitan area of Providence, Rhode Island at about 24%.
See Also: 5 Ways the Housing Market Has Failed Buyers—And It’s Not Over Yet
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