Highlights:
- January 2024 marks the sixth year-over-year rent decline in a row for 0-2 bedroom properties observed since trend data began in 2020. Asking rents dipped by $5 or -0.3% year-over-year (Y/Y).
- The median asking rent in the 50 largest metros decreased to $1,712, down by $1 from last month and down $46 from its August 2022 peak.
- Median rent was mixed across size categories: Studio: $1,434, down $15 (-1.0% ) year-over-year; 1-bed: $1,591, up $1 ( 0.1%) year-over-year; 2-bed: $1,892, down $11 (-0.6% ) year-over-year.
- Regionally, median asking rents in western big metros such as Los Angeles (0.2%) and Seattle (1.3%) started to rebound on a yearly basis while major Northeastern areas continued to see growth. Rents in the Midwest continued to grow (0.2%) while rents in the South continued to drop year-over-year (-1.2%) .
In January 2024, the U.S. median rent continued to decline year-over-year for the sixth month in a row, down -0.3% for 0-2 bedroom properties across the top 50 metros, a pace slower than the -0.8% seen in December 2023. The median asking rent was $1,712, down by $1 from last month. Despite the six months of decline, the U.S. median rent was just $46 (-2.6%) less than the peak seen in August 2022. Notably, it was still $265 (18.3%) higher than the same time in 2020 (pre-pandemic).
Figure 1: Rents Decline Again, but Nationwide Rent is just 2.6% Below 2022 Peak
Studios Saw the Largest Rent Declines
In January 2024, the median asking rent for two bedroom units dropped -0.6%, a dip slightly smaller than the -0.8% seen in December 2023, yet still marking the sixth consecutive month of annual declines. The median rent for two bedrooms was $1,892 nationally, $62 (-3.2%) lower than the peak seen in August 2022. Nevertheless, larger unit rents had the highest growth rate over the past four years, up by $321 (20.4%).
In July 2023, the median asking rent for one-bedrooms units peaked at $1,634, the highest level in our data history and has declined gradually after that throughout the year. In January 2024, the median asking rent for one bedroom unit dropped to $1,591 but was still 0.1% higher than the same time last year and $242 (17.9%) higher than four years ago (pre-pandemic). Stronger price trends for one-bedroom rentals suggest relatively stronger demand. For example, many renters may utilize one-bedroom units as alternatives to both studios and two-bedroom units, given these properties are typically more spacious than a studio and are more affordable than two-bedroom units.
In January 2024, the median asking rent for studios fell by -1.0%, marking the fifth consecutive month of annual declines. The median rent of studios was $1,434 in January, down by $56 (-3.8%) from its peak seen in October 2022. Nevertheless, the median asking rent for studios was still $153 (11.9%) higher than four years ago.
Figure 2: Studios Saw the Largest Rent Declines
Table 1: National Rents by Unit Size
Footnotes
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The regional unemployment rate is averaged across the top 50 metros used in our rental report. Data source: https://www.bls.gov/web/metro/laummtch.htm Data source: https://www.bls.gov/web/metro/laummtrk.htm