Realtor.com® December Rental Report: Rents in Major Cities Continue to Decline Double Digits

Rhea-AI Summary

As of January 21, 2021, realtor.com's December rental report reveals significant disparities in rental trends across the U.S. Major cities like San Francisco and Manhattan are experiencing steep declines in rents, with studio rents dropping by 33.8% and 21.0% respectively. In contrast, suburban areas like Sacramento see rental increases, with studios rising 20.3%. Nationally, studio rents decreased by 0.7%, while one- and two-bedroom units rose by 0.8% and 2.6%. The report underscores the local nature of real estate, particularly in the rental market.

Positive

• One-bedroom rents increased by 0.8% nationwide year-over-year.
• Two-bedroom rents increased by 2.6% nationwide year-over-year.
• Sacramento led in rent increases with 20.3% for studio rentals.

Negative

• Studio rents in San Francisco dropped by 33.8% year-over-year.
• Manhattan saw a 21.0% decrease in studio rents.
• Multiple major urban areas reported significant double-digit declines in rents.

SANTA CLARA, Calif., Jan. 21, 2021 /PRNewswire/ -- Major urban markets, such as San Francisco and Manhattan, continue to see double-digit declines compared to last year, but rent increases in less dense areas have kept nationwide rents growing for one- and two-bedroom units, according to the realtor.com^® December rental report released today. Nationally, the median rent for studio apartments was down 0.7% year-over-year, rent for one-bedrooms was up 0.8%, and rent for two-bedrooms was up 2.6% year-over-year.

"Right now is a great time for renters in major cities to lock in a low price for 2021," said realtor.com^® Chief Economist, Danielle Hale. "But renters in some other areas are seeing a very different trend. With more flexibility and more time at home, renters have sought out extra space, driving up rents in the suburbs and less dense markets. As vaccines are being rolled out nationwide, the question is, how much longer will these trends continue? What's clear, is that the mantra of real estate being local very much applies to rents, not just home prices." 

San Francisco led the nation in declines with average monthly rents falling 33.8%, 25.5% and 22.8% for studio, one-bedroom and two-bedrooms units year-over-year, respectively. Rents for studios and one-bedrooms in nearby Santa Clara, Calif. and San Mateo, Calif. counties also saw double-digit decreases in December. Outside of the Bay Area, Manhattan, Boston, Seattle, and Washington, D.C. were among the metros seeing the largest year-over-year declines. These markets also represent some of the most expensive cities in the country, giving rents the most room to fall.

In December, the median studio rent in Manhattan was $2,288, down 21.0% year-over-year. Median one-bedroom rent in Manhattan was $3,100, down 18.4% compared to last year. Median two-bedroom rent in Manhattan was $5,200 in December, down 16.1% compared to last year.

When it comes to rent increases, Sacramento, Calif. is leading the nation with average monthly rent increasing 20.3%, 12.4%, and 9.1% for studio, one-bedroom and two-bedrooms year-over-year, respectively.  It was followed by New Haven County, Conn.; Essex County, N.J.; and Monroe County, N.Y.,  which saw average gains of 13.3%, 11.9%, and 11.9%, respectively.

To see the full report, including which metros had the greatest increase in rent prices, see here.

Top 10 Markets for Studio Rent Decreases - December 2020

County	Studio - Median Rent	Studio Rent YoY
San Francisco, Calif.	2,086	-33.8%
New York, N.Y.	2,288	-21.1%
San Mateo, Caif.	1,975	-14.8%
Suffolk, Mass.	2,011	-20.4%
King, Wash.	1,350	-18.8%
Santa Clara, Calif.	1,974	-19.6%
Washington, D.C.	1,590	-14.3%
Middlesex, Mass.	1,960	-17.9%
Cook, Ill.	1,250	-20.1%
Honolulu, Hawaii	1,300	-13.3%

Top 10 Markets for 1-Bed Rent Decreases - December 2020

County	1BR Median Rent	1BR Rent YoY
San Francisco, Calif.	2,750	-25.5%
New York, N.Y.	3,100	-18.4%
San Mateo, Calif.	2,395	-17.6%
Suffolk, Mass.	2,500	-17.6%
King, Wash.	1,726	-14.5%
Santa Clara, Calif.	2,398	-13.1%
Washington, D.C.	2,034	-12.9%
Middlesex, Mass.	2,145	-12.5%
Cook, Ill.	1,600	-11.1%
Honolulu, Hawaii	1,650	-8.3%

Top 10 Markets for 2-Bed Rent Decreases - December 2020

County	2BR Median Rent	2BR Rent YoY
San Francisco, Calif.	3,773	-22.8%
New York, N.Y.	5,200	-16.1%
Suffolk, Mass.	3,239	-14.8%
San Mateo, Calif.	3,225	-11.8%
Santa Clara, Calif.	2,979	-10.8%
Washington, D.C.	2,926	-9.9%
Middlesex, Mass.	2,692	-8.3%
King, Wash.	2,257	-7.3%
Multnomah, Ore.	2,087	-6.9%
Miami-Dade, Fla.	2,350	-6.0%

About realtor.com^®
Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com^® is a trusted provider of 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. under a perpetual license from the National Association of REALTORS^®. For more information, visit realtor.com^®.

 

View original content:http://www.prnewswire.com/news-releases/realtorcom-december-rental-report-rents-in-major-cities-continue-to-decline-double-digits-301212226.html

SOURCE realtor.com

FAQ

What were the rental trends in major cities as reported by realtor.com for December 2020?

Major cities like San Francisco and Manhattan experienced significant rental declines, with studio rents falling by 33.8% and 21.0% respectively.

How much did studio rents decline nationally according to the December 2020 rental report?

Studio rents declined by 0.7% nationally year-over-year.

Which city had the highest increase in rents for studios in December 2020?

Sacramento had the highest increase with studio rents rising by 20.3%.

What is the trend for two-bedroom rents nationwide in December 2020?

Two-bedroom rents increased by 2.6% nationwide year-over-year.

How does realtor.com describe the rental market's behavior during the pandemic?

Realtor.com emphasizes that the rental market is local, with varying trends in different areas, especially influenced by pandemic-related factors.