Realtor.com® September Rental Report: A Tale of Two Regions - Midwest Rents Keep Rising, While Southern Rents Decline
Rhea-AI Summary
Realtor.com®'s September Rental Report reveals a regional divide in the U.S. rental market. While national rents declined for the 14th consecutive month, the Midwest experienced growth, with Cincinnati leading at 3.4% annual increase. Conversely, Southern markets saw the steepest declines, with Nashville dropping 4.8% year-over-year.
The report highlights that 8 out of 10 Midwestern markets saw rent increases, attributed to strong affordability and robust labor markets. Meanwhile, 8 out of 10 markets with the largest rent drops were in the South, due to rapid growth in new multi-family housing.
Nationally, the median asking rent decreased by 0.5% year-over-year to $1,743. Rent decreases were observed across all unit sizes, with studios experiencing the steepest drop at -2.3%. Despite the overall decline, U.S. median rent remains just 1.0% below its August 2022 peak and is 19.6% higher than pre-pandemic levels in September 2019.
Positive
- Cincinnati led rent growth with a 3.4% annual increase
- 8 out of 10 Midwestern markets saw rent increases
- U.S. median rent remains 19.6% higher than pre-pandemic levels
Negative
- National rents declined for the 14th consecutive month
- Nashville experienced the steepest rent decline at -4.8% year-over-year
- Median asking rent decreased by 0.5% year-over-year to $1,743
- Rent decreases were observed across all unit sizes
Insights
The September Realtor.com® Rental Report reveals significant regional disparities in the U.S. rental market. The Midwest is experiencing rent growth, with Cincinnati leading at
Nationally, median asking rent decreased by
For investors, this data suggests potential opportunities in Midwestern markets where demand outpaces supply, while Southern markets may face challenges due to oversupply. The national trend of moderating rents could impact real estate investment trusts (REITs) and property management companies, potentially affecting their revenue growth and valuations in the short term.
The rental market's regional divide presents a nuanced picture for stakeholders. While the Midwest benefits from affordability and a strong labor market, the South is experiencing a correction due to increased supply. This trend could reshape investment strategies and population movements.
Key insights include:
- 8 out of 10 Midwestern markets saw rent increases
- 8 out of 10 markets with steepest declines were in the South
- All unit sizes experienced rent decreases nationally
The data suggests a potential shift in rental market dynamics, with implications for urban development, housing policies and economic growth patterns across regions. Investors and policymakers should closely monitor these trends as they may indicate longer-term structural changes in the U.S. housing market.
- Rents grew fastest in
Cincinnati ,St Louis , andMinneapolis , while fastest declines occurred inNashville ,Dallas andAustin, Texas - Nationally, rents dropped across all unit sizes, marking 14 consecutive months of declines
"The balance between housing supply and demand is a key factor shaping regional rent patterns. In markets across the South, increased multi-family inventory is easing competition among renters and driving down prices. On the other hand, in the Midwest, where demand has still outpaced supply, we continue to see rising rents," said Danielle Hale, chief economist at Realtor.com®. "Nationally, the relative stability in rent prices should translate into slower shelter inflation in the months ahead, easing one of the biggest recent drivers of price increases."
Strong affordability, employment drives Midwest rent growth
Overall, the top 10 markets with the fastest year-over-year growth in September were spread across the country, with one metro in the Northeast, three in the South, three in the Midwest, and three in the West. However, the Midwest continues to benefit from strong affordability and a robust labor market. Eight of the 10 Midwestern markets in Realtor.com®'s report saw year-over-year rent increases in September, with
Southern markets lead in rent declines
Southern metros dominated the list of markets with the largest annual rent drops. In fact, eight out of the the top 10 metros with steepest declines were in the South.
Top 10 Markets with the Fastest Rent Growth & Declines – September 2024
Fastest Rent Growth | Median | YOY | Fastest Rent Declines | Median | YOY |
3.4 % | -4.8 % | ||||
2.9 % | -4.0 % | ||||
2.8 % | -4.0 % | ||||
2.6 % | -3.7 % | ||||
2.6 % | -3.5 % | ||||
2.5 % | -3.5 % | ||||
2.4 % | -3.4 % | ||||
1.9 % | -3.2 % | ||||
1.9 % | -3.1 % | ||||
1.9 % | -3.1 % |
Rents decline across all unit sizes
Nationally, September marks the 14th consecutive month of year-over-year rent declines for 0-2 bedroom units. The median asking rent dipped by
Rent decreases were seen across all unit sizes in September, with smaller units experiencing the steepest drops. The median rent for studios fell -
Unit Size | Median Rent | Rent YoY | Rent Change – 5 years (Sept 2019) |
Overall | -0.5 % | ||
Studio | -2.3 % | ||
1-bed | -0.5 % | ||
2-bed | -0.4 % |
50 Largest Metropolitan Areas – September 2024
Metro | Median Rent | YOY |
-3.2 % | ||
-3.7 % | ||
-0.6 % | ||
-3.5 % | ||
-0.8 % | ||
NA | NA | |
-2.9 % | ||
-2.6 % | ||
3.4 % | ||
0.6 % | ||
1.2 % | ||
-4.0 % | ||
-4.0 % | ||
-0.3 % | ||
NA | NA | |
-3.0 % | ||
0.5 % | ||
-2.4 % | ||
0.7 % | ||
-1.1 % | ||
0.0 % | ||
2.5 % | ||
-3.5 % | ||
-3.1 % | ||
1.6 % | ||
1.9 % | ||
-4.8 % | ||
NA | NA | |
2.8 % | ||
1.9 % | ||
-0.8 % | ||
-0.2 % | ||
-3.0 % | ||
1.1 % | ||
1.9 % | ||
NA | NA | |
-0.3 % | ||
-0.6 % | ||
-1.2 % | ||
NA | NA | |
2.4 % | ||
-3.1 % | ||
-3.4 % | ||
-3.1 % | ||
2.6 % | ||
-2.4 % | ||
2.6 % | ||
-2.2 % | ||
0.1 % |
Methodology
Rental data as of September 2024 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the top 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering 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: Sara Wiskerchen, press@realtor.com
View original content:https://www.prnewswire.com/news-releases/realtorcom-september-rental-report-a-tale-of-two-regions--midwest-rents-keep-rising-while-southern-rents-decline-302277345.html
SOURCE Realtor.com
FAQ
What were the top cities for rent growth in September 2024?
Which region experienced the most rent declines in September 2024?
How much did the national median asking rent change year-over-year in September 2024?
How long has the national rental market been experiencing year-over-year declines?
How do current rent levels compare to pre-pandemic levels?
