Data show that, overall, the rental market cooled a bit during December 2023, with rents dipping 0.2% from November. That offered some relief for renters facing continuing affordability challenges, according to Zillow's Observed Rental Index. But even with that decrease, rents remain 3.3% higher than they were a year ago, and the income required to comfortably afford rent (households spending 30% of their income on rent) for the median renter has increased by 40.6% since pre-pandemic times. One interesting trend in December Zillow observed was a greater use of rent concessions, with 32.7% of rentals advertising incentives.
Single-family rents fell, on a monthly basis, in 25 major metro areas. The largest monthly drops in single-family rents are in Boston (-1.2%), Jacksonville (-0.8%), Austin (-0.7%), Miami (-0.6%) and Sacramento (-0.6%).
Single-family rents are up from a year ago in 49 of the 50 largest metro areas. Annual single-family rent increases are highest in Cincinnati (9.4%), Hartford (9.1%), Providence (8.9%), Milwaukee (8.7%) and Buffalo (8.1%).
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