In December 2023, the U.S. median rent price decreased across all 0-2 bedroom properties, and rent was slightly lower than its 2022 peak—according to a year-end report from Realtor.com.
As indicated in the report, median rent saw a year-over-year decline for the eighth consecutive month in December—down -0.4%—in the leading 50 metropolitan areas, at a rate slower than the -0.6% experienced in November.
Since November, the median proposed rent was $1,713, down $4, and $63 (-3.5%) below the former July 2022 peak. The cost was $309 (-3.5%) higher compared with December 2019, just three months prior to the start of the COVID pandemic.
2023’s rental market witnessed a notable change in momentum, as the record amount of new multifamily homes created downward price decreases on median proposed rents. This resulted in eight months of year-over-year declines. There was not a new peak in rent prices.
Pushing ahead, Realtor.com expects ongoing weakness in the rental market throughout 2024.
Key highlights:
- December 2023 is the eighth month of year-over-year rent decline surrounding 0-2 bedroom properties. Proposed rent prices declined by $7, or -0.4%, year-over-year.
- The median proposed rents in the 50 largest metros dropped to $1,713, a $4 decrease from November, and a $63 decrease from its July 2022 peak.
- For all size categories, median rent declined:
- Studio: $1,437, down $14 (-1% ) year-over-year for the sixth month
- 1-bed: $1,593, down $12 (-0.7%) year-over-year for the seventh month
- 2-bed: $1,896, down $7 (-0.4%) year-over-year, for the eighth month
Major takeaways:
“The rental market took a turn in 2023 as an influx of new multifamily apartments coming to the market exerted downward price pressure on median asking rents, which resulted in eight consecutive months of year-over-year price declines as we closed out the year,” said realtor.com® Chief Economist Danielle Hale. “Amid high inflation and costs, softening rental prices throughout 2023 offered renters a small reprieve, and looking forward, realtor.com® anticipates continued weakness in the rental market for 2024, as a much-needed supply of apartment units continues to come onto the market and further impacts market dynamics.”
For the full report, click here.
