{"id":1610,"date":"2023-03-01T08:02:42","date_gmt":"2023-03-01T13:02:42","guid":{"rendered":"https:\/\/embarrdowns.com\/rent-growth-slowing-down-but-cheapest-markets-continue-to-see-price-increases\/"},"modified":"2023-03-01T08:02:43","modified_gmt":"2023-03-01T13:02:43","slug":"rent-growth-slowing-down-but-cheapest-markets-continue-to-see-price-increases","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/rent-growth-slowing-down-but-cheapest-markets-continue-to-see-price-increases\/","title":{"rendered":"Rent Growth Slowing Down, But Cheapest Markets Continue to See Price Increases"},"content":{"rendered":"

With rising rents across the country, places that offer relative affordability are in high demand, leading to increased competition and a potential for prices to go up.[0]<\/a><\/sup> Realtor.com\u00ae Chief Economist Danielle Hale noted that there are fewer rental homes and apartments available in many of these metros, leading to higher prices.[0]<\/a><\/sup> Cities like Indianapolis, Birmingham, Columbus, Kansas City, Cleveland, and Rochester have seen the fastest year-over-year price increases in January 2023, leaving few metros that are maintaining their current level of affordability.[1]<\/a><\/sup><\/p>\n

Nationwide, rent growth for studio to two-bedroom properties continued to slow, with the median rent down 2.9% year-over-year, the lowest growth rate in 22 months.[2]<\/a><\/sup> Rent in January 2022 was 16.2% higher than it was in January 2021.[2]<\/a><\/sup><\/p>\n

Two-bedroom units saw the most significant drop in rent growth. Nationally, the median rent for two bedrooms was $1,934, an increase of $47 (2.5%) compared to the same time last year.[3]<\/a><\/sup> However, rent growth has been fastest in some of the least expensive rental markets, such as Indianapolis, Birmingham, and Columbus, all of which had a single-digit growth rate for the seventh month in a row.<\/p>\n

The figure below displays the year-over-year rent[2]<\/a><\/sup><\/p>\n

The graph depicted in Figure 2 displays the national rent trend by unit size<\/p>\n

Overall, rent growth is slowing down in most places, but the cheapest rental markets are still seeing a significant increase in prices. This could be due to the decreased rental vacancy rate in many of these areas, which is near its long-term low.[1]<\/a><\/sup> In the fourth quarter of 2022, the average rental vacancy rate across these ten least expensive markets was 7.6%\u2014a significant drop from the 9.7% vacancy rate five years ago.[1]<\/a><\/sup> Rents in places like Indianapolis, Birmingham, and Columbus have experienced the fastest year-over-year growth, raising further affordability concerns.<\/p>\n

0. <\/span>“Realtor.com\u00ae January Rental Report: Only One Major Market Remains Below $1,000 Threshold” Yahoo! Voices, 24 Feb. 2023, https:\/\/www.yahoo.com\/now\/realtor-com-january-rental-report-110000395.html<\/a><\/a><\/p>\n

1. <\/span>“Gallery: Top 10 least expensive American metro areas” American City & County, 24 Feb. 2023, https:\/\/www.americancityandcounty.com\/2023\/02\/24\/gallery-top-10-least-expensive-american-metro-areas\/<\/a><\/a><\/p>\n

2. <\/span>“Renters: 50 Largest Metro Areas Compared” MyChesCo, 27 Feb. 2023, https:\/\/www.mychesco.com\/a\/news\/national\/renters-50-largest-metro-areas-compared\/<\/a><\/a><\/p>\n

3. <\/span>“January 2023 Rental Report: Least Expensive Metros See Faster Rent Growth” Realtor.com News, 24 Feb. 2023, https:\/\/www.realtor.com\/research\/january-2023-rent\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With rising rents across the country, places that offer relative affordability are in high demand, leading to increased competition and a potential for prices to go up.[0]<\/a><\/sup> Realtor.com\u00ae Chief Economist Danielle Hale noted that there are fewer rental homes and apartments available in many of these metros, leading to higher prices.[0]<\/a><\/sup> Cities like Indianapolis, Birmingham, Columbus, Kansas City, Cleveland, and Rochester have seen the fastest year-over-year price increases in January 2023, leaving few metros that are maintaining their current level of affordability.[1]<\/a><\/sup><\/p>\n

Nationwide, rent growth for studio to two-bedroom properties continued to slow, with the median rent down 2.9% year-over-year, the lowest growth rate in 22 months.[2]<\/a><\/sup> Rent in January 2022 was 16.2% higher than it was in January 2021.[2]<\/a><\/sup><\/p>\n

Two-bedroom units saw the most significant drop in rent growth. Nationally, the median rent for two bedrooms was $1,934, an increase of $47 (2.5%) compared to the same time last year.[3]<\/a><\/sup> However, rent growth has been fastest in some of the least expensive rental markets, such as Indianapolis, Birmingham, and Columbus, all of which had a single-digit growth rate for the seventh month in a row.<\/p>\n

The figure below displays the year-over-year rent[2]<\/a><\/sup><\/p>\n

The graph depicted in Figure 2 displays the national rent trend by unit size<\/p>\n

Overall, rent growth is slowing down in most places, but the cheapest rental markets are still seeing a significant increase in prices. This could be due to the decreased rental vacancy rate in many of these areas, which is near its long-term low.[1]<\/a><\/sup> In the fourth quarter of 2022, the average rental vacancy rate across these ten least expensive markets was 7.6%\u2014a significant drop from the 9.7% vacancy rate five years ago.[1]<\/a><\/sup> Rents in places like Indianapolis, Birmingham, and Columbus have experienced the fastest year-over-year growth, raising further affordability concerns.<\/p>\n

0. <\/span>“Realtor.com\u00ae January Rental Report: Only One Major Market Remains Below $1,000 Threshold” Yahoo! Voices, 24 Feb. 2023, https:\/\/www.yahoo.com\/now\/realtor-com-january-rental-report-110000395.html<\/a><\/a><\/p>\n

1. <\/span>“Gallery: Top 10 least expensive American metro areas” American City & County, 24 Feb. 2023, https:\/\/www.americancityandcounty.com\/2023\/02\/24\/gallery-top-10-least-expensive-american-metro-areas\/<\/a><\/a><\/p>\n

2. <\/span>“Renters: 50 Largest Metro Areas Compared” MyChesCo, 27 Feb. 2023, https:\/\/www.mychesco.com\/a\/news\/national\/renters-50-largest-metro-areas-compared\/<\/a><\/a><\/p>\n

3. <\/span>“January 2023 Rental Report: Least Expensive Metros See Faster Rent Growth” Realtor.com News, 24 Feb. 2023, https:\/\/www.realtor.com\/research\/january-2023-rent\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1609,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1610"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1610"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1610\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1609"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}