U.S. rents continue to rise. The good news, though, is that they’re not growing as fast as they used to, according to a new Realtor.com report.
The average rent for a two-bedroom home in the 50 largest metropolitan areas in the United States reached $ 1,849 in May, reaching the highest price in Realtor.com’s data history after increased 15.5% compared to May 2021, Realtor.com said.
However, even though average rental prices hit new highs for 15 consecutive months, the May annual rental growth rate was actually the slowest Realtor.com has seen since September 2021. And the national average monthly rent of $ 2,000 that Realtor.com had previously planned for August. it could now hold up until October if prices continue to grow at the same rate. If rents continue to fall further, the $ 2,000 rent may not be a reality until 2023.
““Rising rents are starting to lose momentum, in part because incomes can’t be maintained, even in the strong labor market.””
“There is no doubt that tenants are facing very high prices. And with rising inflation reflecting price jumps in both rents and daily spending, many tenants are feeling the pressure on their finances.” Realtor.com chief economist Danielle Hale said in a statement. “Still, our May data suggests that rising rents are starting to lose strength, in part because incomes can’t keep up, even in the strong labor market.”
(Realtor.com is operated by News Corp NWSA,
subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
However, slowing down price gains is unlikely to be too much of a solution for tenants with short-term difficulties. Average housing costs continue to outpace the average income growth in the country, Realtor.com noted. And households are also facing higher gas and food prices.
Cities with the most dramatic year-over-year increases in average rents in May included Miami at around 46%, Orlando at around 28% and the Providence, Rhode Island metropolitan area at about 24%.
See also: 5 ways in which the real estate market left buyers in the dust, and it’s not over yet