In April, median rent prices dropped yet again nationwide, down 0.7% for most properties, with three major metros—namely, Austin, Texas; Las Vegas, Nevada; and San Francisco, California—seeing prices fall compared to each city’s individual peak, according to the latest Realtor.com® rental report. In contrast, rent in Indianapolis, Milwaukee and Minneapolis reached new highs.
“In the ever-fluctuating real estate market, renters will find that trends vary significantly by location,” said Danielle Hale, chief economist at Realtor.com®. “Renters in some historically expensive areas are seeing lower prices compared to what they would have paid at the peak of the market, while many relatively affordable markets are witnessing a continued rise in rental costs to new highs, and the scales could tip to even more markets later this summer.”
Diving deeper into the data, the median asking rent for 0-2 bedroom units dropped 0.7% year-over-year, to $1,723, marking the ninth consecutive year-over-year drop. From the August 2022 national peak, rents are still just $33 (1.9%) lower.
In regard to Midwest metros that are facing record-high rent prices, a below-average unemployment rate and the lack of ongoing multi-home construction both contribute to the increases, according to the report.
Renters in South and West markets are experiencing the largest savings
- Austin saw the largest savings out of 50 largest metro markets in April.
- Median asking rent for Austin in April was $1,494, down $195 (11.5%) from September 2022 peak.
- Austin’s rent is still $260 (21.1%) greater than pre-COVID.
- Las Vegas experienced the second-largest rent savings since peak, as renters save $184 on average—down 11.1% from June 2022.
- In third place comes San Francisco, where an average renter could save $303 per month, down 9.9% from July 2022 peak.
- Other notable decreases include Nashville, Tennessee, where rental costs fell 8.4%, and Orlando, Florida, down 5.9%.
Record-high rents in Midwest metros
- Indianapolis, up 4.5% annually to $1,334
- Milwaukee, up 3.8% to $1,671
- Minneapolis, up 2.5% to $1,529
For the full report, click here.
