Median rents in the U.S. hit a new high this month, but rents are rising at a slower pace now than they were last year, according to the latest quarterly HotPads® Rent Report.
The current median rent in the U.S. is $1,500 per month, up 2.5% from last year. As rent prices hit new highs, affordability continues to be a struggle for many renters, making it more difficult for them to save for a down payment or keep up with other rising costs of living such as child care.
While rents have continually risen for more than six years, rents have been rising at a slower pace in recent months. This time last year, rents were rising about 3% annually – now, rents are rising 2.5% annually.
Rent prices are growing slower now than they were last year in 19 of the 35 largest metro areas. Seattle and Portland, Ore., had the biggest drops in annual rent appreciation. In Seattle, the median rent is $2,225 per month, up 4.3% from a year ago. This time last year, rents in Seattle were up 7.7% annually. Rents in Portland are up 2.8% annually now but rose 4.5% annually at this time in 2017.
Of the 35 largest metro areas, Sacramento’s rents are rising the fastest, but annual rent appreciation has slowed in Sacramento as well. Currently, the median rent in Sacramento is $1,940 a month, up 6.5% from a year ago. This time last year, rents in Sacramento were up 7.7% annually.
Slowing rent growth can come from an influx of new supply or softer demand. Investment in new apartment construction has been very strong in recent years and, at the same time, as the labor market tightens, some renters – particularly higher income renters – are choosing to buy a home instead of rent.
“Rental affordability is still a top concern, but new construction is starting to alleviate supply constraints, taking pressure off the rental market,” said Joshua Clark, economist at HotPads. “Waves of new construction have transformed Seattle and Portland, the two metros with the biggest decrease in rent appreciation. While market forces haven’t changed to the point that rent prices are falling, renters who have been fighting significant rent increases for years are starting to get some relief. If current trends hold, renters can expect to see rent appreciation stagnate or fall sometime over the next few months to a year, depending on where they are located.”
Rent growth has slowed the most among one-bedroom rentals. Currently, renters can expect to spend $1,280 on a typical one-bedroom rental in the U.S. – 2.2% more than last year. This time in 2017, one-bedroom rents were rising 3% annually. Annual rent price appreciation for one-bedroom units fell the most compared to last year in San Antonio, Washington, D.C., and Seattle.
HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States.
All Rentals | One-Bedroom Rentals | |||||
Metropolitan | Median | YoY | YoY Change, | Median | YoY | YoY Change, |
United States | $1,500 | 2.5% | 3.1% | $1,280 | 2.2% | 3.0% |
New York, NY | $2,360 | 1.1% | 1.9% | $2,030 | 0.9% | 1.6% |
Los Angeles, CA | $2,890 | 4.2% | 5.5% | $2,120 | 4.6% | 7.0% |
Chicago, IL | $1,780 | 1.9% | 2.3% | $1,550 | 1.4% | 2.5% |
Dallas, TX | $1,655 | 3.1% | 4.0% | $1,045 | 2.3% | 3.6% |
Philadelphia, PA | $1,665 | 2.2% | 2.3% | $1,375 | 2.1% | 1.6% |
Houston, TX | $1,585 | 2.7% | -0.4% | $965 | 2.8% | -2.0% |
Washington, DC | $2,170 | 1.4% | 1.9% | $1,805 | 0.7% | 1.8% |
Miami, FL | $2,005 | 2.3% | 2.3% | $1,415 | 1.8% | 1.5% |
Atlanta, GA | $1,450 | 5.1% | 5.1% | $1,355 | 4.8% | 4.9% |
Boston, MA | $2,405 | 3.1% | 3.9% | $1,905 | 2.1% | 3.4% |
San Francisco, CA | $3,460 | 3.2% | 3.4% | $2,480 | 2.2% | 2.4% |
Detroit, MI | $1,285 | 3.6% | 3.3% | $1,090 | 4.0% | 5.2% |
Riverside, CA | $1,930 | 5.7% | 5.2% | $1,245 | 6.2% | 5.8% |
Phoenix, AZ | $1,470 | 5.7% | 5.1% | $1,145 | 6.7% | 6.8% |
Seattle, WA | $2,225 | 4.3% | 7.7% | $1,760 | 3.1% | 7.5% |
Minneapolis, MN | $1,670 | 3.9% | 4.0% | $1,265 | 3.5% | 3.4% |
San Diego, CA | $2,680 | 4.8% | 5.4% | $1,835 | 5.7% | 6.3% |
St. Louis, MO | $1,195 | 2.1% | 2.0% | $880 | 2.2% | 3.0% |
Tampa, FL | $1,460 | 4.6% | 4.3% | $1,105 | 5.6% | 5.4% |
Baltimore, MD | $1,745 | 1.0% | 0.7% | $1,390 | 0.5% | 0.2% |
Denver, CO | $2,100 | 3.7% | 3.8% | $1,365 | 3.0% | 3.5% |
Pittsburgh, PA | $1,095 | 2.0% | 1.3% | $905 | 2.1% | 1.7% |
Portland, OR | $1,930 | 2.8% | 4.5% | $1,570 | 2.3% | 3.6% |
Charlotte, NC | $1,370 | 3.8% | 4.3% | $1,110 | 3.4% | 3.5% |
Sacramento, CA | $1,940 | 6.5% | 7.7% | $1,420 | 8.1% | 10.4% |
San Antonio, TX | $1,380 | 2.3% | 2.9% | $860 | 0.9% | 2.6% |
Orlando, FL | $1,505 | 5.5% | 4.5% | $965 | 6.0% | 4.6% |
Cincinnati, OH | $1,220 | 2.9% | 3.4% | $885 | 3.0% | 3.9% |
Cleveland, OH | $1,195 | 2.2% | 1.6% | $940 | 3.3% | 3.7% |
Kansas City, MO | $1,250 | 3.1% | 3.5% | $885 | 3.3% | 4.1% |
Las Vegas, NV | $1,395 | 6.1% | 4.5% | $965 | 6.7% | 5.4% |
Columbus, OH | $1,420 | 3.8% | 3.3% | $980 | 3.8% | 3.2% |
Indianapolis, IN | $1,235 | 3.4% | 2.5% | $875 | 3.0% | 3.3% |
San Jose, CA | $3,685 | 3.5% | 2.0% | $2,585 | 3.6% | 2.0% |
Austin, TX | $1,735 | 1.4% | 2.0% | $1,340 | 1.0% | 1.6% |
