Rent Prices Dip for 11th Consecutive Month: Where the Most Significant Savings Are Found

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If you’ve been feeling the pinch of rising rent costs, here's a surprising twist: rents across the U.S. have been falling for nearly a year. According to the latest report from Realtor.com®, the median asking rent in the 50 largest metropolitan areas was $1,743 in June—$7 less than the same month last year. This marks the 11th consecutive month of year-over-year declines.

Despite this overall downward trend, rents have only slightly retreated from their peak in August 2022, down just 0.6%. However, in certain markets, renters are experiencing more substantial relief, with notable reductions in monthly payments.

Where Rents Have Fallen the Most

Austin, TX, leads the pack with the most dramatic drop, where rents have plummeted by 9.5% year over year, averaging $1,481 per month. Following closely is San Antonio, TX, with an 8.2% decline, bringing the median rent to $1,234. Nashville, TN, also saw significant reductions, with an 8.1% drop, resulting in a median rent of $1,525.

“The most significant decreases in rent were observed in Southern markets,” explains Realtor.com economist Jiayi Xu. “This trend aligns with the substantial influx of new rental properties in these regions.”

Post-Pandemic Rental Price Surge

Although rents have decreased over the past year, they are still significantly higher than pre-pandemic levels. Renters in June were paying an average of $305 more per month compared to 2019—an increase of 21.2%. This rise mirrors the overall 22.6% increase in consumer prices over the past five years.

Specifically, two-bedroom units have surged by $363 (23.0%), one-bedroom units by $264 (19.5%), and studio apartments by $219 (17.6%) since June 2019. Despite these sharp increases, they still fall short compared to the 52.6% rise in the median price per square foot of homes for sale over the same period.

San Francisco: A Rarity in Rent Trends

San Francisco stands out as the only major metro area where rent prices are currently lower than five years ago. Renters there are saving an average of $153 per month compared to June 2019—a 5.2% reduction. This decline is attributed to a shift away from high-cost tech hubs during the pandemic, according to Xu. Nonetheless, San Francisco remains one of the most expensive markets, with average rents still at $2,784 per month.