As Vacancy Rate Rises, Rents Are Poised to Fall
Rents are growing at the slowest pace since the COVID-19 pandemic, with median prices in the nation's 50 largest cities reaching $1,734 in April, down $43 from last year’s peak, according to Realtor.com. Increased supply of newly constructed apartments has led to a vacancy rate of 6.4%—the highest in two years—and that availability is sending prices slightly lower.
While rents are beginning to fall in pricey coastal markets and in Sun Belt cities, Cincinnati and Detroit are seeing some of the nation’s biggest rental gains, with year-over-year increases of 9.9% and 8.9%, respectively.
The Cincinnati metro, where the median apartment cost $1,218, saw the sharpest price gain in April, with rents up 9.9% compared with a year ago. Detroit, where the median rent is $1,390, was in second place, with an 8.9% gain.
In contrast, some of the hottest pandemic destinations saw the biggest reversals. Riverside, CA, saw rents fall 10.9% in April versus a year ago, resulting in a median rental cost of $2,123. And in Las Vegas, the median lease was 5.7% lower than in 2022, settling at a mere $1,509.