Now May Be the Best Time to Save Thousands on a Lease in the Nation's Largest Tech Hubs, According to Realtor.com® Rental Report

SANTA CLARA, Calif., March 16, 2021 /PRNewswire/ -- Rents continued their downward spiral in many of the nation's largest housing markets in February, but they may have hit their bottom, according to the realtor.com^® Monthly Rental Report released today. For those looking to move or return to the big city, acting now while rents are still at their lowest could mean saving thousands of dollars a year.

"Housing markets like San Francisco, Santa Clara, Calif., Boston and Seattle have seen rents decline by double digits since the start of the pandemic and rent growth across the nation remains lower than pre-COVID levels. However, the downward trend is leveling off and rents may have hit their bottom in many markets," said realtor.com^® Chief Economist Danielle Hale. "With the COVID-19 vaccination rates improving, returning to work and the city may be on the minds of many. For those looking to capitalize on rock-bottom rents, finding a new unit now could make sense. You'll not only save money, you'll have less competition finding the location that's best for you."

In February, the U.S. median rent, which is calculated by averaging the median rent of the 50 largest metros, was up 0.6% to $1,452, well below its pre-COVID growth rate of 3.2%. With rent growth stabilizing over the past three months, rents could begin to return to pre-COVID growth rates in the coming months.

Rent savings in tech markets could add up to thousands of dollars
Although rents have begun to stabilize, and even rise by double-digits in some markets like New Orleans, Sacramento, Calif., Memphis and Riverside, Calif., where rents rose 18.7%, 11.0% 10.8% and 10.7%, respectively in February, that's not the case in many of the nation's largest tech hubs.

In San Jose, Calif., situated in the heart of Silicon Valley, median rent was $2,690 in February, 13.2%, or $410, less than a year earlier. Renters signing a 12-month lease today would save nearly $5,000, compared to pre-pandemic prices for the same unit. They'd save almost as much in neighboring San Francisco, where rents were down nearly 13% from a year ago in February.

Tech hub markets - Typical savings versus last year's rents

Metro	Median Rent Feb. 2021	Median Rent Feb. 2020	Monthly Rent Savings	12-Month Lease Savings
San Jose-Sunnyvale-Santa Clara, Calif.	$2,690	$3,100	$410	$4,920
San Francisco-Oakland-Hayward, Calif.	$2,611	$2,986	$375	$4,500
Boston-Cambridge-Newton, Mass.-N.H.	$2,250	$2,449	$199	$2,388
Seattle-Tacoma-Bellevue, Wash.	$1,735	$1,906	$171	$2,052
Los Angeles-Long Beach-Anaheim, Calif.	$2,485	$2,645	$160	$1,920
Washington-Arlington-Alexandria, D.C. -Va.-Md.-W.Va.	$1,848	$1,950	$102	$1,224

February 2021 rental data - 50 largest metropolitan areas

Metro	Median Rent (Overall)	Median Rent YoY (Overall)
Atlanta-Sandy Springs-Roswell, Ga.	$1,430	4.0%
Austin-Round Rock, Texas	$1,330	-2.9%
Baltimore-Columbia-Towson, Md.	$1,549	3.6%
Birmingham-Hoover, Ala.	$995	5.3%
Boston-Cambridge-Newton, Mass.-N.H.	$2,250	-8.1%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$1,090	-4.8%
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,304	2.0%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$1,600	-2.7%
Cincinnati, Ohio-Ky.-Ind.	$1,099	7.2%
Cleveland-Elyria, Ohio	$1,080	8.5%
Columbus, Ohio	$1,069	3.8%
Dallas-Fort Worth-Arlington, Texas	$1,270	0.4%
Denver-Aurora-Lakewood, Colo.	$1,639	-2.1%
Detroit-Warren-Dearborn, Mich.	$1,145	6.4%
Hartford-West Hartford-East Hartford, Conn.	$1,450	2.8%
Houston-The Woodlands-Sugar Land, Texas	$1,199	0.1%
Indianapolis-Carmel-Anderson, Ind.	$1,055	7.8%
Jacksonville, Fla.	$1,188	4.2%
Kansas City, Mo.-Kan.	$1,055	0.6%
Las Vegas-Henderson-Paradise, Nev.	$1,250	6.0%
Los Angeles-Long Beach-Anaheim, Calif.	$2,485	-6.0%
Louisville/Jefferson County, Ky.-Ind.	$984	6.4%
Memphis, Tenn.-Miss.-Ark.	$1,025	10.8%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$1,865	-0.5%
Milwaukee-Waukesha-West Allis, Wis.	$1,335	-1.8%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$1,425	-1.7%
Nashville-Davidson-Murfreesboro-Franklin, Tenn.	$1,323	-0.5%
New Orleans-Metairie, La.	$1,324	18.7%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$2,395	4.1%
Oklahoma City, Okla.	$784	-0.8%
Orlando-Kissimmee-Sanford, Fla.	$1,319	-2.8%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$1,550	3.3%
Phoenix-Mesa-Scottsdale, Ariz.	$1,388	3.6%
Pittsburgh, Pa.	$1,240	-2.0%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,494	-1.5%
Providence-Warwick, R.I.-Mass.	$1,650	7.1%
Raleigh, N.C.	$1,239	3.2%
Richmond, Va.	$1,130	3.7%
Riverside-San Bernardino-Ontario, Calif.	$1,880	10.7%
Rochester, N.Y.	$1,175	7.8%
Sacramento-Roseville-Arden-Arcade, Calif.	$1,665	11.0%
San Antonio-New Braunfels, Texas	$1,053	1.8%
San Diego-Carlsbad, Calif.	$2,205	0.7%
San Francisco-Oakland-Hayward, Calif.	$2,611	-12.6%
San Jose-Sunnyvale-Santa Clara, Calif.	$2,690	-13.2%
Seattle-Tacoma-Bellevue, Wash.	$1,735	-9.0%
St. Louis, Mo.-Ill.	$1,084	8.4%
Tampa-St. Petersburg-Clearwater, Fla.	$1,396	7.8%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,235	8.3%
Washington-Arlington-Alexandria, D.C.-Va.-Md.- W.Va.	$1,848	-5.2%

Methodology
Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, one-bedroom, or two-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas.

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