October data from Redfin indicated that rent prices in the U.S. dropped for the second straight month, falling below $2,000 a month for the first time since April. The average cost of rent in the United States’ 50 largest metro areas dropped .9% in October.
Redfin’s data also indicates that rent prices in 11 of the United States’ 50 largest metro areas have declined in the last year. Overall, rent prices are up 7.8% in the last year. In March, Redfin reported a year-over-year increase of 17.5%
Redfin reported that rent costs declined in these 11 metro areas:
- Milwaukee (-17.6%)
- Minneapolis (-7.8%)
- Baltimore (-3.2%)
- Seattle (-2.7%)
- Boston (-2.5%)
- Austin, Texas (-2.3%)
- Atlanta (-2.2%)
- Columbus, Ohio (-1.7%)
- Los Angeles (-1.1%)
- Chicago(-1.1%)
- Houston (-0.8%)
In the last year, rents increased the most in these five cities:
- Oklahoma City (31.7%)
- Raleigh, N.C. (21.0%)
- Cincinnati (17.0%)
- Louisville, Ky. (15.8%)
- Indianapolis (15.1%)
“Demand for rentals is slowing because economic uncertainty is prompting many renters to stay put, and persistent inflation is shrinking renter budgets. That’s causing rent growth to cool,” said Redfin Deputy Chief Economist Taylor Marr. “There are signs that inflation is starting to ease, but it will likely be a while before renters see meaningful relief given that rents are still up more than wages.”