Rents Grow Faster for the First Time in Eight Months

Declines persist in the nation's tech hubs with rents down 14% from last year in Silicon Valley

April 13, 2021 5:57 AM EDT

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SANTA CLARA, Calif., April 13, 2021 /PRNewswire/ -- After eight months of consistent slowdowns, rent growth in the nation's largest housing markets saw its first uptick in March, rising 1.1% year-over-year, according to the realtor.com® Monthly Rental Report released today. Despite the improvement, the rental markets in pricey high-tech hubs like San Jose, San Francisco and Seattle continue to struggle, creating opportunities for renters.

In March, the U.S. median rent, which is calculated by averaging the median rent of the 50 largest metros, averaged $1,463, a 1.1% increase from a year ago. Over the course of the past eight months, rent growth had slowed from 2.2% in July 2020 to just 0.6% in February.

"Although we're still below the 3.2% growth we were seeing before COVID, average rent growth in the nation's largest housing markets saw its first uptick since July 2020, and rents are poised to rise at a quickening pace as recovery continues. However, rents are not rising in all markets. The tech markets and several big metros like Chicago and Los Angeles continue to see rent declines, but generally at a slower pace than in recent months, which could signal a turnaround in the coming months," said realtor.com® Chief Economist Danielle Hale.

Hale added that as home prices hit record highs and interest rates continue to climb, there may be an increased appetite for rentals as more would-be homebuyers wait for the next season. Rising demand for rentals could gradually push rents higher, eventually to pre-COVID levels after some time.

Two ends of the spectrumFor the third month in a row, New Orleans led the nation in rent growth, with the median rent up 15.6% year-over-year to $1,305. Other markets that saw the median rent increase by double digits were Riverside, Calif., Memphis, Tenn. and Sacramento, Calif. Leading the nation in rent declines were: San Jose, Calif., San Francisco, Seattle, Boston, Los Angeles and Washington, D.C.

Markets With the Largest Rent Increases in March 2021

Rank

Metro

Median Rent

Median Rent YoY

1

New Orleans-Metairie, La.

$1,305

15.6%

2

Riverside-San Bernardino-Ontario, Calif.

$1,925

13.2%

3

Memphis, Tenn.-Miss.-Ark.

$1,040

11.8%

4

Sacramento--Roseville--Arden-Arcade, Calif.

$1,685

11.6%

5

Richmond, Va.

$1,186

9.9%

6

Cleveland-Elyria, Ohio

$1,088

8.9%

7

Tampa-St. Petersburg-Clearwater, Fla.

$1,413

8.6%

8

Providence-Warwick, R.I.-Mass.

$1,680

8.4%

9

Louisville/Jefferson County, Ky.-Ind.

$999

8.0%

10

Rochester, N.Y.

$1,175

7.6%

Markets With the Largest Rent Decreases in March 2021

March 2021 Rental Data - 50 Largest Metropolitan Areas

Metro

Median Rent

Median Rent YoY

Atlanta-Sandy Springs-Roswell, Ga.

$1,450

5.7%

Austin-Round Rock, Texas

$1,349

-1.3%

Baltimore-Columbia-Towson, Md.

$1,569

4.9%

Birmingham-Hoover, Ala.

$999

6.3%

Boston-Cambridge-Newton, Mass.-N.H.

$2,295

-7.4%

Buffalo-Cheektowaga-Niagara Falls, N.Y.

$1,095

-4.4%

Charlotte-Concord-Gastonia, N.C.-S.C.

$1,320

2.8%

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

$1,600

-3.0%

Cincinnati, Ohio-Ky.-Ind.

$1,095

6.9%

Cleveland-Elyria, Ohio

$1,088

8.9%

Columbus, Ohio

$1,075

4.9%

Dallas-Fort Worth-Arlington, Texas

$1,275

1.5%

Denver-Aurora-Lakewood, Colo.

$1,652

-1.7%

Detroit-Warren-Dearborn, Mich.

$1,145

6.0%

Hartford-West Hartford-East Hartford, Conn.

$1,480

5.7%

Houston-The Woodlands-Sugar Land, Texas

$1,199

-0.1%

Indianapolis-Carmel-Anderson, Ind.

$1,055

7.5%

Jacksonville, Fla.

$1,199

4.9%

Kansas City, Mo.-Kan.

$1,059

1.0%

Las Vegas-Henderson-Paradise, Nev.

$1,250

5.5%

Los Angeles-Long Beach-Anaheim, Calif.

$2,489

-5.5%

Louisville/Jefferson County, Ky.-Ind.

$999

8.0%

Memphis, Tenn.-Miss.-Ark.

$1,040

11.8%

Miami-Fort Lauderdale-West Palm Beach, Fla.

$1,886

-0.7%

Milwaukee-Waukesha-West Allis, Wis.

$1,335

-1.4%

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

$1,425

-2.1%

Nashville-Davidson--Murfreesboro--Franklin, Tenn.

$1,325

1.1%

New Orleans-Metairie, La.

$1,305

15.6%

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

$2,350

2.2%

Oklahoma City, Okla.

$790

-1.0%

Orlando-Kissimmee-Sanford, Fla.

$1,345

-1.1%

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

$1,575

4.3%

Phoenix-Mesa-Scottsdale, Ariz.

$1,417

5.0%

Pittsburgh, Pa.

$1,270

-0.8%

Portland-Vancouver-Hillsboro, Ore.-Wash.

$1,500

-1.0%

Providence-Warwick, R.I.-Mass.

$1,680

8.4%

Raleigh, N.C.

.$1,244

2.8%

Richmond, Va.

$1,186

9.9%

Riverside-San Bernardino-Ontario, Calif.

$1,925

13.2%

Rochester, N.Y.

$1,175

7.6%

Sacramento--Roseville--Arden-Arcade, Calif.

$1,685

11.6%

San Antonio-New Braunfels, Texas

$1,062

2.1%

San Diego-Carlsbad, Calif.

$2,240

2.3%

San Francisco-Oakland-Hayward, Calif.

$2,626

-10.1%

San Jose-Sunnyvale-Santa Clara, Calif.

$2,685

-14.1%

Seattle-Tacoma-Bellevue, Wash.

$1,750

-9.7%

St. Louis, Mo.-Ill.

$1,075

5.9%

Tampa-St. Petersburg-Clearwater, Fla.

$1,413

8.6%

Virginia Beach-Norfolk-Newport News, Va.-N.C.

$1,236

7.5%

Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.

$1,850

-6.3%

MethodologyRental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, one-bedroom, or two-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas.

About realtor.com®Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

Media ContactJanice McDill, janice.mcdill@move.com

Cision View original content:http://www.prnewswire.com/news-releases/rents-grow-faster-for-the-first-time-in-eight-months-301267337.html

SOURCE realtor.com



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