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According to a recent report from Realtor.com, which tracked rents for studios, one-bedroom and two-bedroom apartments, condos, townhomes, and single-family homes in the 50 largest U.S. metros, September 2023 marked the fifth straight month of year-over-year declines in rents. During September, prices decreased further by 0.7% and the median asking rent dropped to $1,747—a $5 decrease from August 2023 and a $29 decrease from the peak rental prices of July 2022.

But, even with these declines, rents are still higher than before the pandemic. For example, in September 2023, rents were $338, which is 24% higher than in the same month of 2019. And rents aren't falling evenly across the board, with some markets still seeing rising rents.

The recent rent declines are a welcome trend for renters, says Realtor.com senior economist Jiayi Xu.

“In today’s market, we are seeing high home prices and record mortgage rates,” she says. “Declining rent means buying is not as urgent and renting is more favorable.”

Fresh competition is fueling the rent decreases. The annual completion of new apartment buildings is at a near record high—and units are renting fast. More than 82,000 apartments in buildings with five or more units were completed in the first quarter of 2023, according to the Survey of Market Absorption of New Family Unit.

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