Despite broad increases in rental prices, competition is easing in some U.S. housing markets as inventory grows, according to a recent report from HouseCanary, a national real estate brokerage.
At the end of 2022, the median rent in the U.S. was $2,305, which is nearly 5% higher than the median rent from a year earlier. But when compared to the first half of 2022, that median rent price had declined almost 6%, according to the report.
5 Metro Areas with the Largest Annual Rent Decrease
These five U.S metropolitan real estate markets had the biggest year-over-year percentage decrease in the median monthly rental listing price for single-family rentals.
- Memphis, Tennessee (Median rent decrease of -5.8%)
- Port St. Lucie, Florida (Median rent decrease of -5.4%)
- Cape Coral, Florida and Fort Myers, Florida (Median rent decrease of -5.1%)
- Palm Bay, Florida; Melbourne, Florida; Titusville, Florida (Median rent decrease of -4.3%)
- Phoenix, Arizona; Mesa, Arizona; Chandler, Arizona (Median rent decrease of -2.1%)
As rent prices ease and mortgage rates rise, it’s becoming cheaper to rent than buy in some markets.
For example, a recent report from Attom, a real estate data analysis firm, found that renting a three-bedroom home is more affordable than owning a comparable median-priced property in most of the country.
Similarly, Realtor.com’s December rental report published Thursday found that the U.S. median rental price of $1,712 was nearly $800 cheaper than the monthly cost for a starter home.
Related: The Rent-or-Buy Debate: Pros and Cons of Renting and Buying a Home
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Market Recap Week of 1/23/2023 Through 1/27/2023