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Rent was 1 percent lower in June 2023 than a year earlier, according to a report released Tuesday by Realtor.com.
It was the latest signal that relief is on the way for renters who have been squeezed by high prices since early in the COVID-19 pandemic.
The typical rent was $1,745 a month in June, down $31 from its record high in July 2022, Realtor.com said.
Danielle Hale | Realtor.com
“The downward trend in rent prices continued in June, providing a much-needed respite for renters and an opportunity to regain some control over their housing expenses,” said Realtor.com Chief Economist Danielle Hale.
The slowdown is expected to continue, according to this and other recent reports about rent changes in the U.S.
“With our midyear forecast update calling for slowing inflation, better-than-expected labor market performance, and an increase in multifamily supply, we’re seeing some encouraging signs for renters’ budgets as we enter the second half of the year,” Hale said.
According to the Zillow Observed Rent Index, which tracks the price of rentals nationwide, rent is 30 percent higher this month than it was four years earlier.
Regional slowdowns
The Western U.S. continues to lead the way in falling rent, Realtor.com’s new report confirms.
Rent in the West is now 3.8 percent lower than it was a year earlier, according to the report. In the South, rent dropped 1.3 percent.
Meanwhile, rent continues to rise in the Northeast. It was 4.7 percent higher in New York City in June than a year earlier, according to Realtor.com. In Boston, rent grew 2.5 percent.
Rent in the Midwest grew 3.2 percent, the report reads, and among the top 10 markets with the highest rent growth in June, five were in the Midwest.
“The continuing declines in rental prices mark a promising shift for renters after months where many renters spent more than they could afford on housing costs,” Realtor.com economist Jiayi Xu said. “We expect to see rental prices continue to show small year-over-year declines through the end of the year.”
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