Realtor.com® January Rental Report: Only One Major Market Remains Below $1,000 Threshold
According to the Realtor.com® Monthly Rental Report released on February 24, 2023, Oklahoma City, Louisville, and Birmingham recorded the lowest monthly rents among the largest U.S. metros. Oklahoma City leads with a median rent of $982, with nine other cities reporting median rents under $1,300. While these markets offer affordability, competition is rising, leading to fast rent increases and less availability. In January 2023, the median asking rent in the 50 largest metros decreased 2.9% year-over-year to $1,726, marking a continual cooling trend with a drop from the August 2022 peak. The rental vacancy rate across affordable metros was notably higher than the national average.
- Oklahoma City reported the lowest median rent at $982, below $1,000, providing affordability.
- Ten markets showed median rents under $1,300, indicating a relative affordability amid high national rent.
- Rental growth is slowing, with a 2.9% year-over-year decrease in median rents, suggesting a cooling market for renters.
- Increasing competition in affordable areas may lead to rising rents and reduced availability.
- Several affordable metros are experiencing fast year-over-year price increases, reducing long-term affordability.
- The average rental vacancy rate in these affordable markets at 7.6% is significantly lower than before, indicating a tightening market.
There are 10 markets where median monthly rents are lower than
The least expensive markets are:
Oklahoma City, Okla. -$982 Louisville, Ky. -$1,167 Birmingham, Ala. -$1,178 Rochester, N.Y. -$1,235 Columbus, Ohio -$1,242 Indianapolis, Ind. -$1,266 Memphis, Tenn. -$1,274 St. Louis, Mo. -$1,279 Cleveland, Ohio -$1,290 Kansas City, Mo. /Kan. -$1,298
Renters looking to take advantage of the best possible prices should move quickly. While the rents in these metros are the lowest among the 50 largest, for many of them, prices are increasing at a faster rate than in the rest of the country.
"With high rents across the country, places that offer relative affordability tend to be in high demand, which means more competition and that these lower prices might not last," said Realtor.com® Chief Economist
Many of these areas also have less rental availability than in past years, suggesting that affordable metros are increasing in popularity. For example, in the fourth quarter of 2022, the average rental vacancy rate across these least expensive markets was
Nationwide, rent growth for studio to two-bedroom properties continued to slow. Median rent was down
Last month was the twelfth month of cooling rent growth and the sixth month in a row with a single-digit rate increase. The median asking rent in the 50 largest metros declined to
Rental Data – 50 Largest Metropolitan Areas –
Metro | Overall Median Rent | Overall Rent YY | Rental Vacancy Rate | Homeownership Rate |
-0.9 % | 5.4 % | 59.9 % | ||
-1.4 % | 4.9 % | 64.6 % | ||
0.4 % | 6.9 % | 72.1 % | ||
8.8 % | 13.2 % | 71.0 % | ||
4.6 % | 3.1 % | 60.7 % | ||
NA | NA | 3.8 % | 66.8 % | |
3.1 % | 3.4 % | 60.3 % | ||
4.8 % | 5.8 % | 68.9 % | ||
5.7 % | 7.9 % | 65.2 % | ||
7.1 % | 3.1 % | 61.8 % | ||
8.3 % | 4.2 % | 58.6 % | ||
2.6 % | 6.7 % | 56.9 % | ||
1.2 % | 4.8 % | 67.7 % | ||
3.0 % | 4.4 % | 71.0 % | ||
NA | NA | 4.4 % | 67.9 % | |
2.3 % | 10.5 % | 66.7 % | ||
10.5 % | 9.8 % | 71.6 % | ||
NA | NA | 7.4 % | 63.5 % | |
8.2 % | 8.9 % | 66.4 % | ||
-6.2 % | 6.1 % | 60.2 % | ||
4.0 % | 3.3 % | 50.2 % | ||
1.8 % | 5.9 % | 70.4 % | ||
-0.1 % | 6.7 % | 61.3 % | ||
4.8 % | 6.0 % | 57.1 % | ||
8.6 % | 7.2 % | 50.5 % | ||
3.3 % | 6.8 % | 75.8 % | ||
0.7 % | 5.5 % | 67.6 % | ||
-3.8 % | 8.2 % | 67.9 % | ||
9.4 % | 3.1 % | 50.1 % | ||
5.2 % | 12.5 % | 65.2 % | ||
3.8 % | 6.4 % | 59.3 % | ||
5.4 % | 5.3 % | 69.9 % | ||
-3.4 % | 7.0 % | 67.2 % | ||
5.3 % | 5.5 % | 72.6 % | ||
6.1 % | 4.8 % | 65.9 % | ||
NA | NA | 3.8 % | 64.8 % | |
2.6 % | 6.0 % | 62.3 % | ||
3.1 % | 5.7 % | 68.5 % | ||
2.1 % | 2.9 % | 63.9 % | ||
6.2 % | 3.7 % | 74.8 % | ||
-3.6 % | 2.5 % | 61.5 % | ||
2.2 % | 7.2 % | 60.6 % | ||
2.9 % | 3.2 % | 54.1 % | ||
0.7 % | 5.5 % | 59.1 % | ||
2.9 % | 5.6 % | 54.8 % | ||
0.8 % | 4.7 % | 66.3 % | ||
4.7 % | 8.2 % | 71.9 % | ||
2.0 % | 7.5 % | 63.1 % | ||
5.2 % | 8.3 % | 61.2 % | ||
3.3 % | 5.2 % | 64.4 % |
Methodology
Rental data as of January 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 top 50 largest metropolitan areas. Realtor.com® began publishing regular monthly rental trends reports in
With the release of its January rent report, Realtor.com® incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics. The new methodology is expected to yield a cleaner, more representative and more consistent measurement of rental listings and trends at both the national and local level. The methodology has been adjusted to better represent the true cost of primary housing for renters. Most areas across the country will see minor changes with a smaller handful of areas seeing larger updates. As a result of these changes, the rental data released since
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
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SOURCE Realtor.com
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