Realtor.com® May Rental Report: Sky High U.S. Rents Surpass Pre-COVID Levels by More than 25%
06/22/2022 - 06:00 AM
National rents grew at a double-digit annual pace (+15.5% ) for the 10th straight month in May, but by the smallest amount since fall 2021 – hinting at potential relief to come later this year
SANTA CLARA, Calif. , June 22, 2022 /PRNewswire/ -- The U.S. median rental price hit its latest new high of $1,849 per month in May, representing a 26.6% increase since 2019 before the pandemic began, according to the Realtor.com® Monthly Rental Report released today. While May marked the 10th straight month of double-digit annual growth in national rents, the increase was the smallest since September 2021 , offering renters a glimpse of a light at the end of the tunnel.
"There's no question that renters are facing sky high prices. And with rising inflation reflecting price jumps for both rents and everyday expenses, many renters are feeling the strain on their finances ," said Realtor.com® Chief Economist Danielle Hale . "Still, our May data suggests that the rent surge is beginning to lose some steam, in part because incomes can't keep up, even in the strong job market . Although rent growth remains historically high, the rate has been gradually cooling since January, pulling back from 2021's feverish pace. In a bit of good news for renters, the deceleration picked up in May which means if these trends continue, last month's prediction of rents surpassing $2,000 sometime this summer is going to take longer to materialize."
May 2022 Rental Metrics – National
Unit Size
Median Rent
Change over May 2021
Change over May 2020
Overall
$1,849
15.5 %
23.2 %
Studio
$1,530
16.9 %
18.8 %
1-bed
$1,708
15.2 %
22.5 %
2-bed
$2,076
14.8 %
25.5 %
National rents maintain double-digit growth, but cool slightly from 2021 's record pace
For Americans looking for available rental units within their budgets, May trends offer bittersweet news. On one hand, national rents posted the smallest year-over-year gain (+15.5% ) since September 2021 , moderating from their January peak (+17.3% ) for the fourth consecutive month. As a result, rents took a step back from their previous projection of surpassing $2,000 by as early as this summer. In fact, if rent growth continues cooling, typical asking rents may not reach that milestone until next year. Additionally, with the for-sale housing supply recovery forecasted to accelerate in the second half of the year , a rise in first-time buying opportunities could take even more pressure off rental demand and prices.
Still, rental affordability remained a significant challenge for many renters across the country in May. The U.S. median rental price continued its record-breaking streak, hitting a new high ($1,849) for the fifteenth month in a row and reaching 26.6% higher than in May 2019 before the onset of COVID. Additionally, all unit sizes posted double-digit rental price gains year-over-year: studios, up 16.9% to $1,530 ; one-bedrooms, up 15.2% to $1,708 ; and two-bedrooms, up 14.8% to $2,076 . Rising inflation is further compounding the strain on households' monthly budgets, as higher costs of rents and regular expenses continue to outpace income growth .
Renters find relatively more affordable options where rental vacancy rates are lowest
In May, rents grew on a year-over-year basis in all 50 of the largest U.S. metros and at a faster pace than the national rate in nearly half (21) of these markets. The biggest annual rental price gains were registered in Miami (+45.8% ), Orlando, Fla. (+28.4% ), Providence, R.I. (+23.8% ), San Diego (+22.7% ) and Tampa, Fla. (+22.4% ).
A key factor driving the ongoing rent surge is a lack of supply, as rental vacancy rates, which were already trending lower, have taken a sharp dive during the pandemic. These trends are magnified in the biggest cities that tend to attract younger residents, many of whom are in the early stages of their careers and looking for the flexibility in their living situations. Renting may also be a more desirable alternative to buying in these areas, where real estate has historically come at a premium. According to U.S. Census Bureau data from the first quarter of 2022 , rental vacancy rates were lower inside (5.7% ) versus outside (6.7% ) the largest metro areas.
Realtor.com® analysis highlights the relationship between large markets' rental availability and prices. On one end of the spectrum, major tech hub Boston held the nation's fifth highest rent ($2,889) in May after posting a vacancy rate of just 2.4% in 2022-Q1. Conversely, renters may find more affordable options in relatively smaller and less densely populated secondary metros. Of the 10 areas with the highest vacancy rates, nine were among May's lowest-priced rental markets, led by Indianapolis with a significantly lower overall rent ($1,275) and higher vacancy rate (10.9% ) than in Boston (see table below).
May 2022 Rental Metrics – Top 10 Metros by Lowest Vacancy Rates in 2022-Q1
Metro
Vacancy Rate 2022- Q1
May Median Rental Price
May Median Rental Price Rank (Highest to Lowest)
Indianapolis, Ind.
10.9 %
$1,275
47
Pittsburgh, Penn.
10.6 %
$1,528
34
Raleigh, N.C.
10.1 %
$1,652
28
Houston, Texas
9.7 %
$1,444
37
Buffalo, N.Y.
9.5 %
$1,333
44
Cincinnati, Ohio
9.0 %
$1,473
35
Oklahoma City, Okla.
8.7 %
$1,000
50
Tampa, Fla.
8.4 %
$2,093
12
Birmingham, Ala.
8.0 %
$1,234
48
Charlotte, N.C.
7.8 %
$1,719
26
May 2022 Rental Metrics – 50 Largest U.S. Metro Areas
Metro Area
Overall Median Rent
Overall Rent YoY
Studio Median Rent
Studio Rent YoY
1-br Median Rent
1-br Rent YoY
2-br Median Rent
2-br Rent YoY
Atlanta-Sandy Springs-Roswell, Ga.
$1,840
13.4 %
$1,699
15.3 %
$1,707
13.8 %
$2,055
13.0 %
Austin-Round Rock, Texas
$1,829
21.9 %
$1,474
22.8 %
$1,687
25.4 %
$2,018
18.7 %
Baltimore-Columbia-Towson, Md.
$1,811
11.0 %
$1,425
6.2 %
$1,707
9.4 %
$1,915
9.4 %
Birmingham-Hoover, Ala.
$1,234
8.9 %
$1,056
3.2 %
$1,164
11.3 %
$1,308
9.3 %
Boston-Cambridge-Newton, Mass.-N.H.
$2,889
21.5 %
$2,473
26.8 %
$2,693
19.7 %
$3,254
25.1 %
Buffalo-Cheektowaga-Niagara Falls, N.Y.
$1,333
9.2 %
$1,125
2.7 %
$1,175
6.9 %
$1,495
8.7 %
Charlotte-Concord-Gastonia, N.C.-S.C.
$1,719
18.5 %
$1,603
22.5 %
$1,617
18.9 %
$1,867
13.8 %
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
$1,961
15.3 %
$1,655
23.2 %
$1,915
14.5 %
$2,175
11.0 %
Cincinnati, Ohio-Ky.-Ind.
$1,473
10.3 %
$1,212
12.7 %
$1,395
8.7 %
$1,610
7.4 %
Cleveland-Elyria, Ohio
$1,414
10.9 %
$946
5.6 %
$1,317
7.5 %
$1,537
13.4 %
Columbus, Ohio
$1,300
11.6 %
$1,090
11.1 %
$1,215
11.1 %
$1,401
8.2 %
Dallas-Fort Worth-Arlington, Texas
$1,676
19.7 %
$1,439
21.4 %
$1,543
21.0 %
$1,958
18.7 %
Denver-Aurora-Lakewood, Colo.
$2,010
12.9 %
$1,636
13.6 %
$1,884
13.5 %
$2,369
13.9 %
Detroit-Warren-Dearborn, Mich.
$1,415
7.2 %
$1,115
12.1 %
$1,185
6.7 %
$1,581
7.2 %
Hartford-West Hartford-East Hartford, Conn.
$1,754
12.4 %
$1,468
27.7 %
$1,522
5.0 %
$2,073
16.4 %
Houston-The Woodlands-Sugar Land, Texas
$1,444
11.1 %
$1,362
10.9 %
$1,325
12.7 %
$1,630
12.4 %
Indianapolis-Carmel-Anderson, Ind.
$1,275
10.9 %
$1,065
9.1 %
$1,175
11.9 %
$1,418
9.1 %
Jacksonville, Fla.
$1,593
18.0 %
$1,185
31.7 %
$1,509
20.0 %
$1,756
20.4 %
Kansas City, Mo.-Kan.
$1,316
11.1 %
$1,024
8.4 %
$1,243
17.3 %
$1,499
11.0 %
Las Vegas-Henderson-Paradise, Nev.
$1,648
20.2 %
$1,295
29.6 %
$1,518
19.7 %
$1,744
17.9 %
Los Angeles-Long Beach-Anaheim, Calif.
$3,019
17.7 %
$2,313
17.4 %
$2,789
20.9 %
$3,462
16.7 %
Louisville/Jefferson County, Ky.-Ind.
$1,224
13.8 %
$1,005
11.6 %
$1,149
13.6 %
$1,397
11.0 %
Memphis, Tenn.-Miss.-Ark.
$1,413
17.7 %
$1,151
6.7 %
$1,362
17.9 %
$1,543
18.8 %
Miami-Fort Lauderdale-West Palm Beach, Fla.
$2,843
45.8 %
$2,413
41.8 %
$2,500
38.9 %
$3,201
45.5 %
Milwaukee-Waukesha-West Allis, Wis.
$1,578
12.7 %
$1,263
10.8 %
$1,465
10.6 %
$1,770
10.6 %
Minneapolis-St. Paul-Bloomington, Minn.-Wis.
$1,590
4.2 %
$1,250
4.6 %
$1,497
3.2 %
$1,944
2.9 %
Nashville-Davidson--Murfreesboro--Franklin, Tenn.
$1,749
20.6 %
$1,685
16.2 %
$1,625
19.1 %
$1,895
22.3 %
New Orleans-Metairie, La.
$1,805
12.8 %
$1,407
27.9 %
$1,618
8.4 %
$2,108
13.9 %
New York-Newark-Jersey City, N.Y.-N.J.-Pa.
$2,872
18.7 %
$2,616
30.8 %
$2,565
14.0 %
$3,254
16.2 %
Oklahoma City, Okla.
$1,000
11.2 %
$936
33.7 %
$911
8.5 %
$1,099
14.4 %
Orlando-Kissimmee-Sanford, Fla.
$1,955
28.4 %
$1,691
24.3 %
$1,811
27.4 %
$2,221
30.3 %
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
$1,800
7.5 %
$1,525
8.2 %
$1,717
5.6 %
$1,995
5.0 %
Phoenix-Mesa-Scottsdale, Ariz.
$1,788
16.6 %
$1,424
16.2 %
$1,626
15.8 %
$1,972
14.7 %
Pittsburgh, Pa.
$1,528
6.6 %
$1,275
10.4 %
$1,510
9.0 %
$1,673
3.2 %
Portland-Vancouver-Hillsboro, Ore.-Wash.
$1,798
10.9 %
$1,444
7.3 %
$1,750
11.1 %
$2,138
8.2 %
Providence-Warwick, R.I.-Mass.
$2,198
23.8 %
$1,752
16.8 %
$1,920
23.9 %
$2,500
31.6 %
Raleigh, N.C.
$1,652
19.5 %
$1,478
20.7 %
$1,525
22.0 %
$1,833
18.6 %
Richmond, Va.
$1,460
15.9 %
$1,185
18.9 %
$1,326
15.8 %
$1,570
15.0 %
Riverside-San Bernardino-Ontario, Calif.
$2,617
9.5 %
$1,842
22.4 %
$2,159
10.7 %
$2,858
8.9 %
Rochester, N.Y.
$1,367
11.6 %
$1,005
11.0 %
$1,305
14.5 %
$1,497
12.9 %
Sacramento--Roseville--Arden-Arcade, Calif.
$2,090
8.6 %
$1,844
7.8 %
$1,968
6.8 %
$2,255
7.6 %
San Antonio-New Braunfels, Texas
$1,397
17.4 %
$1,254
13.4 %
$1,282
18.8 %
$1,600
19.0 %
San Diego-Carlsbad, Calif.
$3,099
22.7 %
$2,484
19.7 %
$2,873
23.6 %
$3,450
19.0 %
San Francisco-Oakland-Hayward, Calif.
$3,056
10.1 %
$2,431
10.1 %
$2,802
10.4 %
$3,522
6.8 %
San Jose-Sunnyvale-Santa Clara, Calif.
$3,253
19.8 %
$2,545
22.4 %
$3,039
21.9 %
$3,665
19.6 %
Seattle-Tacoma-Bellevue, Wash.
$2,233
16.6 %
$1,859
21.9 %
$2,217
15.9 %
$2,673
15.5 %
St. Louis, Mo.-Ill.
$1,346
6.5 %
$1,017
7.1 %
$1,290
8.9 %
$1,469
4.9 %
Tampa-St. Petersburg-Clearwater, Fla.
$2,093
22.4 %
$1,965
21.0 %
$1,879
21.2 %
$2,342
24.6 %
Virginia Beach-Norfolk-Newport News, Va.-N.C.
$1,567
12.7 %
$1,352
10.0 %
$1,474
12.5 %
$1,686
9.3 %
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.
$2,150
12.0 %
$1,745
12.2 %
$2,054
11.9 %
$2,562
9.9 %
Methodology
Data as of May 2022 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com® . Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, defined by the Core-Based Statistical Area (CBSA). Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019 .
Note: With the release of its May 2022 Rental Report, Realtor.com® incorporated a new and improved methodology (see details here ). As a result of these changes, the rental data released since May 2022 will not be directly comparable with prior publications and downloaded files. However, future releases, including historical data, will consistently apply the new methodology.
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 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. 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. For more information, visit Realtor.com ® .
Media Contact rachel.conner@move.com
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