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
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 spectrum
For 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 |
1 | $1,305 | 15.6% | |
2 | $1,925 | 13.2% | |
3 | $1,040 | 11.8% | |
4 | $1,685 | 11.6% | |
5 | $1,186 | 9.9% | |
6 | $1,088 | 8.9% | |
7 | $1,413 | 8.6% | |
8 | $1,680 | 8.4% | |
9 | $999 | 8.0% | |
10 | $1,175 | 7.6% |
Markets With the Largest Rent Decreases in March 2021
Rank | Metro | Median Rent | Median |
1 | $2,685 | -14.1% | |
2 | $2,626 | -10.1% | |
3 | $1,750 | -9.7% | |
4 | $2,295 | -7.4% | |
5 | $1,850 | -6.3% | |
6 | $2,489 | -5.5% | |
7 | $1,095 | -4.4% | |
8 | $1,600 | -3.0% | |
9 | $1,425 | -2.1% | |
10 | $1,652 | -1.7% |
March 2021 Rental Data - 50 Largest Metropolitan Areas
Metro | Median Rent | Median |
$1,450 | 5.7% | |
$1,349 | -1.3% | |
$1,569 | 4.9% | |
$999 | 6.3% | |
$2,295 | -7.4% | |
$1,095 | -4.4% | |
$1,320 | 2.8% | |
$1,600 | -3.0% | |
$1,095 | 6.9% | |
$1,088 | 8.9% | |
$1,075 | 4.9% | |
$1,275 | 1.5% | |
$1,652 | -1.7% | |
$1,145 | 6.0% | |
$1,480 | 5.7% | |
$1,199 | -0.1% | |
$1,055 | 7.5% | |
$1,199 | 4.9% | |
$1,059 | 1.0% | |
$1,250 | 5.5% | |
$2,489 | -5.5% | |
$999 | 8.0% | |
$1,040 | 11.8% | |
$1,886 | -0.7% | |
$1,335 | -1.4% | |
$1,425 | -2.1% | |
$1,325 | 1.1% | |
$1,305 | 15.6% | |
$2,350 | 2.2% | |
$790 | -1.0% | |
$1,345 | -1.1% | |
$1,575 | 4.3% | |
$1,417 | 5.0% | |
$1,270 | -0.8% | |
$1,500 | -1.0% | |
$1,680 | 8.4% | |
.$1,244 | 2.8% | |
$1,186 | 9.9% | |
$1,925 | 13.2% | |
$1,175 | 7.6% | |
$1,685 | 11.6% | |
$1,062 | 2.1% | |
$2,240 | 2.3% | |
$2,626 | -10.1% | |
$2,685 | -14.1% | |
$1,750 | -9.7% | |
$1,075 | 5.9% | |
$1,413 | 8.6% | |
$1,236 | 7.5% | |
$1,850 | -6.3% |
Methodology
Rental 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®
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SOURCE realtor.com
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