Realtor.com® December Rental Report: Rents Continued to Fall as New Construction Outpaced Rental Demand
Realtor.com's December Rental Report shows that rents declined for the 17th consecutive month, dropping -1.1% year-over-year to a median of $1,695. This marks the first time since April 2022 that the national median asking rent fell below $1,700.
The rental market is showing signs of balance as the nationwide absorption rate fell to 55%, matching 2019 levels. While overall inflation has increased 22.8% since 2019, rents have only risen 16%. The Northeast region maintains the highest absorption rates, increasing from 58% to 67%, while the West saw the largest decline, dropping from 72% to 58%.
Notable market changes include significant rent decreases in Memphis (-6.7%), Denver (-5.9%), and Austin (-5.0%). However, affordable rentals continue to show stronger demand with a 56.3% absorption rate compared to 53.8% for pricier units.
Il Rapporto sugli Affitti di Realtor.com di dicembre mostra che gli affitti sono diminuiti per il 17° mese consecutivo, scendendo del -1,1% su base annua a una mediana di $1.695. Questo segna la prima volta da aprile 2022 che la mediana nazionale degli affitti richiesti scende sotto i $1.700.
Il mercato degli affitti sta mostrando segni di equilibrio poiché il tasso di assorbimento nazionale è sceso al 55%, raggiungendo i livelli del 2019. Mentre l'inflazione complessiva è aumentata del 22,8% dal 2019, gli affitti sono aumentati solo del 16%. La regione del Northeast mantiene i tassi di assorbimento più elevati, passando dal 58% al 67%, mentre il West ha registrato il calo più grande, scendendo dal 72% al 58%.
Tra i cambiamenti significativi del mercato ci sono notevoli riduzioni degli affitti in Memphis (-6,7%), Denver (-5,9%) e Austin (-5,0%). Tuttavia, gli affitti accessibili continuano a mostrare una domanda più forte con un tasso di assorbimento del 56,3% rispetto al 53,8% per le unità più costose.
El Informe de Alquileres de Realtor.com de diciembre muestra que los alquileres han disminuido por 17 meses consecutivos, cayendo un -1.1% interanual hasta una mediana de $1,695. Esta es la primera vez desde abril de 2022 que la mediana nacional del alquiler solicitado cae por debajo de $1,700.
El mercado de alquileres está mostrando signos de equilibrio, ya que la tasa de absorción nacional cayó al 55%, igualando los niveles de 2019. Mientras que la inflación general ha aumentado un 22.8% desde 2019, los alquileres solo han subido un 16%. La región del noreste mantiene las tasas de absorción más altas, aumentando del 58% al 67%, mientras que el oeste vio la mayor disminución, cayendo del 72% al 58%.
Los cambios notables en el mercado incluyen disminuciones significativas en los alquileres en Memphis (-6.7%), Denver (-5.9%) y Austin (-5.0%). Sin embargo, los alquileres asequibles continúan mostrando una demanda más fuerte con una tasa de absorción del 56.3% en comparación con el 53.8% para las unidades más caras.
Realtor.com의 12월 임대 보고서에 따르면, 임대료는 17개월 연속 하락했으며 작년 대비 -1.1% 감소하여 중위값이 $1,695로 떨어졌습니다. 이는 2022년 4월 이후 처음으로 전국 평균 청구 임대료가 $1,700 이하로 떨어진 것입니다.
전국적인 흡수율이 55%로 감소하면서 임대 시장은 균형을 이루고 있는 모습입니다. 2019년 수준과 일치하는 수치입니다. 2019년 이후 전체 인플레이션이 22.8% 증가한 반면, 임대료는 16%만 올랐습니다. 북동부 지역은 58%에서 67%로 증가하며 가장 높은 흡수율을 유지하고 있으며, 서부 지역은 72%에서 58%로 가장 큰 감소를 보였습니다.
주목할 만한 시장 변화로는 멤피스(-6.7%), 덴버(-5.9%), 오스틴(-5.0%)에서 임대료가 크게 감소한 것입니다. 그러나 저렴한 임대 주택은 여전히 강한 수요를 보이며, 고가 유닛에 비해 56.3%의 흡수율을 기록했습니다.
Le Rapport de Location de Realtor.com de décembre montre que les loyers ont diminué pour le 17ème mois consécutif, avec une baisse de -1,1% par rapport à l'année précédente, atteignant une médiane de 1 695 $. C'est la première fois depuis avril 2022 que le loyer médian national tombe en dessous de 1 700 $.
Le marché locatif montre des signes d'équilibre, la taux d'absorption national ayant chuté à 55%, un niveau comparable à celui de 2019. Alors que l'inflation globale a augmenté de 22,8% depuis 2019, les loyers n'ont augmenté que de 16%. La région du Nord-Est maintient les taux d'absorption les plus élevés, passant de 58% à 67%, tandis que l'Ouest a connu la plus forte baisse, passant de 72% à 58%.
Des changements notables sur le marché incluent des baisses significatives des loyers à Memphis (-6,7%), Denver (-5,9%) et Austin (-5,0%). Cependant, les locations abordables continuent de montrer une demande plus forte avec un taux d'absorption de 56,3% contre 53,8% pour les unités plus chères.
Der Dezember-Mietbericht von Realtor.com zeigt, dass die Mietpreise im 17. Monat in Folge gesunken sind, mit einem Rückgang von -1,1% im Vergleich zum Vorjahr auf einen Median von $1.695. Dies ist das erste Mal seit April 2022, dass die nationale Median-Mietforderung unter $1.700 gefallen ist.
Der Mietmarkt zeigt Anzeichen von Gleichgewicht, da die landesweite Absorptionsrate auf 55% gesunken ist und damit den Niveaus von 2019 entspricht. Während die Gesamtinflation seit 2019 um 22,8% gestiegen ist, sind die Mieten nur um 16% gestiegen. Die Nordostregion weist die höchsten Absorptionsraten auf, die von 58% auf 67% gestiegen sind, während der Westen den größten Rückgang verzeichnete, der von 72% auf 58% fiel.
Bemerkenswerte Marktveränderungen umfassen signifikante Mietrückgänge in Memphis (-6,7%), Denver (-5,9%) und Austin (-5,0%). Dennoch zeigen erschwingliche Mietwohnungen eine stärkere Nachfrage mit einer Absorptionsrate von 56,3% im Vergleich zu 53,8% für teurere Einheiten.
- Market stabilization with absorption rates returning to pre-pandemic levels (55%)
- Rent growth (16%) has remained below inflation (22.8%) over the past five years
- 17 consecutive months of rent declines (-1.1% YoY)
- Eight out of 11 Western markets reported YoY rent declines
- Significant rent decreases in major markets (Memphis -6.7%, Denver -5.9%, Austin -5.0%)
Insights
The rental market's continued decline marks a significant shift in the housing sector dynamics. The -1.1% year-over-year decrease to
The
Major tech hubs are experiencing notable corrections, with San Francisco (
The multi-family construction surge's impact on rental rates represents a classic supply-side correction. The declining absorption rates in premium segments coupled with sustained demand for affordable units presents a strategic challenge for developers. The regional variations are particularly telling - the Northeast's resilience, exemplified by New York's
The data suggests a potential oversupply in certain market segments, particularly in tech-heavy metros. This could lead to increased concessions and competitive pricing strategies from property managers in the coming quarters. The sustained demand for affordable units, despite overall market softening, indicates a possible opportunity for developers to pivot toward this underserved segment.
"We are reaping the benefits of the multi-family surge in housing starts that lasted throughout 2023, but as starts and completions slow we anticipate seeing more balance in the rental market ahead," said Danielle Hale, chief economist at Realtor.com®. "For renters, balance is welcome and signals an end to the pandemic era rental market spikes."
Strong Rental Supply Growth Helps Bring Market Closer to Balance
Strong rental supply growth in recent years has returned the market to a more balanced state as the nationwide absorption rate, the share of newly built rental units that are successfully leased out within three months of completed construction, fell to
Absorption rate is not the only signal of a move into balanced market territory. The influx of new multi-family construction is helping bring balance to the rental market, especially when looking at the change in rents over the last five years and the inflation rate. Since 2019, overall inflation has increased
Balance Lags for Affordable Rentals
More supply is helping ease the high demand seen during the height of the pandemic years; however, absorption rates for affordable rentals show stronger demand for these properties than for more expensive ones. The weighted average absorption rates within three months of completion were
Apartments Continue to Fill Fast in the Northeast while the West saw Falling Absorption
Regionally the Northeast has the highest absorption rates and is the only area experiencing a higher absorption rate in the third quarter of 2024 compared to the same period last year, rising from
The West experienced the largest decline in absorption rates within the first three months of completion, dropping from
Table One: National Rents by Unit Size
Unit Size | Median Rent | Rent YoY | Rent Change - 5 Years |
Overall | -1.1 % | 16.0 % | |
Studio | -1.3 % | 11.3 % | |
1-Bedroom | -0.9 % | 15.9 % | |
2-Bedroom | -0.9 % | 19.8 % |
Table Two: Rental Data–50 Largest Metropolitan Areas–December 2024
Metro | Median Rent (0-2 | YoY Change (0-2 |
-2.9 % | ||
-5.0 % | ||
-0.4 % | ||
-2.4 % | ||
-0.5 % | ||
NA | NA | |
-2.2 % | ||
-2.8 % | ||
0.5 % | ||
-3.4 % | ||
0.7 % | ||
-4.1 % | ||
-5.9 % | ||
-0.2 % | ||
NA | NA | |
-2.3 % | ||
-0.5 % | ||
-1.0 % | ||
3.1 % | ||
-1.4 % | ||
-2.7 % | ||
1.2 % | ||
-6.7 % | ||
-1.0 % | ||
-1.2 % | ||
0.2 % | ||
-4.4 % | ||
NA | NA | |
5.3 % | ||
1.3 % | ||
-0.6 % | ||
-1.0 % | ||
-3.9 % | ||
-0.2 % | ||
1.0 % | ||
NA | NA | |
-2.4 % | ||
-0.8 % | ||
-4.8 % | ||
NA | NA | |
1.2 % | ||
-3.1 % | ||
-4.2 % | ||
-4.3 % | ||
3.3 % | ||
-1.3 % | ||
1.3 % | ||
-1.6 % | ||
-0.8 % | ||
2.1 % |
Methodology
Rental data as of December 2024 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Media Contact: Mallory Micetich, press@realtor.com
View original content:https://www.prnewswire.com/news-releases/realtorcom-december-rental-report-rents-continued-to-fall-as-new-construction-outpaced-rental-demand-302355387.html
SOURCE Realtor.com
FAQ
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