Rental prices fell for the third straight month in July, decreasing 1% year-over-year, according to Realtor.com’s most recent rental report. As builders continue to add more rental supply to the market over the next year, more declines are expected, and even the most minuscule price drops are making a big difference.
The typical tenant household put around 25.9% of its income toward rent, compared with 26.5% a year ago. While prices were down $18 from the peak high reached a year earlier, the nation’s 50 largest metro areas are still seeing costs rise.
“We anticipate this downward pressure on rent prices will continue, providing many renters with much-needed stability in their housing expenses,” Realtor.com Chief Economist Danielle Hale said in a statement. “Given the current rental market momentum and seasonal trends, it will be very unlikely to see a new peak rent in 2023.”
Unfortunately for renters, though, prices are still steadily climbing in the Midwest and Northeast, where prices hadn’t risen by as much during the pandemic. The cheapest monthly rent (in the 50 largest metros) was in Oklahoma City, where tenants paid a median of $1,032 a month.
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