Realtor.com® June Rental Report: Rents Surge to New Highs Nationwide

Rhea-AI Summary

The June 2021 Realtor.com® Monthly Rental Report highlights a significant rise in U.S. rental prices, with the median rent hitting $1,575, an 8.1% year-over-year increase. Notably, 44 out of 50 major metros recorded record highs, particularly in Riverside, Memphis, Tampa, and Phoenix, experiencing over 20% growth. The Chief Economist points out that this surge exacerbates the K-shaped recovery from the pandemic, with rents outpacing income growth. Additionally, demand for larger living spaces has led to a notable increase in two-bedroom rents, up 10.2% year-over-year.

Positive

• U.S. median rent reached a record high of $1,575, up 8.1% year-over-year.
• 44 out of 50 largest metros saw rental prices break records.
• Riverside experienced the highest growth at 24.2%, with median rent at $2,112.
• Demand for larger living spaces increased, with two-bedroom rents rising 10.2% year-over-year.

Negative

• Rents are increasing faster than income, impacting lower-income Americans.
• The ongoing housing shortage continues to pressure affordability.

SANTA CLARA, Calif., July 15, 2021 /PRNewswire/ -- The shortage of affordable housing inventory forced more prospective homebuyers into the rental market in June, driving the U.S. median rent price to a new high of $1,575, an 8.1% increase year-over-year, according to the Realtor.com^® Monthly Rental Report released today. Additionally, rental prices in 44 of the 50 largest metros broke new records led by Riverside, Memphis, Tampa and Phoenix, which posted gains above 20% year-over-year. 

"The surge we're seeing in rental prices is likely to exacerbate the K-shaped, or uneven, nature of the pandemic recovery in the U.S. Rents are rising at a faster pace than income, which is adding to the challenges faced by lower-income Americans as they struggle to recover from job losses and other hardships brought about by COVID," said Realtor.com^® Chief Economist Danielle Hale. "Looking forward, rents aren't expected to slow unless we see a fundamental shift in the number of homes for sale and for rent."

Hale added, June's 3.2% price growth over May was more than just the usual seasonal trend of increasing summer rents. Rents typically fluctuate by less than 1% on a monthly basis. In June, rents in all but two of the 50 largest U.S. metros posted month-over-month gains of 1.0% or higher. Miami topped the list at an increase of 7.7% over May, a gain that would be exceptional over the course of 12-months, let alone one. 

Rents surge to new highs in 44 of the 50 largest U.S. metros
The spike in demand for housing is putting pressure on markets already challenged by availability and affordability. Similar to the shortage of homes for sale, the number of homes available to rent is historically low, driving competition and surging rental prices. In June, rents in 44 of the 50 largest U.S. markets hit the highest levels seen in the past two years of Realtor.com^® data. Additionally, nearly half of these metros posted month-over-month gains at or above the unusually high national rate. 

For the second straight month, Riverside, Calif., Memphis, Tenn., Tampa and Phoenix held the top spots by rent growth. Rents in these markets grew at a faster pace in June than last month, posting year-over-year gains of 20% or more in June. Riverside saw the highest growth in June, up 24.2% over last year and 4.6% from May (+19.2%) to a median $2,112. 

Strong demand for more space widens the rent gap between unit sizes
The desire for larger living space increased significantly during the pandemic, and this trend continued to play out this month. Two-bedroom rents increased at the fastest pace of all unit sizes in June, up 10.2% year-over-year to a new high of $1,770. Two-bedroom rents were up 13.6% in June compared to 2019, rising $212 per month in just two years.

Although the gap between two-bedroom rents and smaller unit sizes is getting larger, one-bedroom (+8.0%) and studio (+4.0%) rents also posted significant gains in June, with one-bedroom rents reaching a new high of $1,466. More common to crowded cities, studios saw the steepest declines during COVID but are finally catching up with the overall rental market recovery. In June, studio rents rose 5.8% over 2019 to a new two-year high of $1,294.

Realtor.com®June 2021 Rental Data - Top 10 Markets for Year-over-Year Rent Increases

Rank	Metro	Median Rent	Rent YY
1	Riverside-San Bernardino-Ontario, CA	2,112	24.2%
2	Memphis, TN-MS-AR	1,150	23.0%
3	Tampa-St. Petersburg-Clearwater, FL	1,605	21.1%
4	Phoenix-Mesa-Scottsdale, AZ	1,590	20.9%
5	Sacramento--Roseville--Arden-Arcade, CA	1,821	17.5%
6	Cincinnati, OH-KY-IN	1,200	17.1%
7	San Diego-Carlsbad, CA	2,507	17.0%
8	Las Vegas-Henderson-Paradise, NV	1,397	16.0%
9	Atlanta-Sandy Springs-Roswell, GA	1,590	15.6%
10	Jacksonville, FL	1,310	14.4%

 

Realtor.com®June 2021 Rental Data - 50 Largest Metropolitan Areas

Metro	Median Rent	Rent M/M	Rent Y/Y	Studio Median Rent	Studio Rent Y/Y	1br Median Rent	1br Rent Y/Y	2br Median Rent	2br Rent Y/Y
Atlanta-Sandy Springs-Roswell, Ga.	$1,590	3.5%	15.6%	$1,490	12.6%	$1,495	15.4%	$1,739	17.1%
Austin-Round Rock, Texas	$1,492	5.0%	10.4%	$1,223	9.7%	$1,366	11.2%	$1,675	13.2%
Baltimore-Columbia-Towson, Md.	$1,620	1.3%	6.6%	$1,334	6.7%	$1,558	7.4%	$1,728	6.0%
Birmingham-Hoover, Ala.	$1,070	3.0%	12.6%	$1,059	13.3%	$1,020	12.5%	$1,101	12.3%
Boston-Cambridge-Newton, Mass.-N.H.	$2,450	2.1%	-2.0%	$2,060	-5.5%	$2,310	-2.9%	$2,700	-3.6%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$1,180	3.1%	4.9%	$900	13.6%	$1,060	3.4%	$1,350	5.9%
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,434	2.4%	10.8%	$1,299	8.3%	$1,330	9.7%	$1,575	12.6%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$1,700	3.0%	0.3%	$1,345	-6.5%	$1,650	-0.9%	$1,900	2.7%
Cincinnati, Ohio-Ky.-Ind.	$1,200	4.4%	17.1%	$1,025	2.5%	$1,155	12.7%	$1,275	21.4%
Cleveland-Elyria, Ohio	$1,094	0.8%	9.4%	$796	6.1%	$1,045	8.9%	$1,180	9.4%
Columbus, Ohio	$1,149	2.2%	9.3%	$965	7.2%	$1,090	9.9%	$1,228	9.3%
Dallas-Fort Worth-Arlington, Texas	$1,389	3.7%	11.1%	$1,199	11.8%	$1,278	13.1%	$1,633	13.7%
Denver-Aurora-Lakewood, Colo.	$1,820	3.7%	10.2%	$1,505	4.5%	$1,699	11.1%	$2,125	13.3%
Detroit-Warren-Dearborn, Mich.	$1,190	2.7%	8.2%	$985	4.2%	$1,025	9.6%	$1,325	7.3%
Hartford-West Hartford-East Hartford, Conn.	$1,545	3.0%	8.4%	$1,104	-6.4%	$1,450	5.5%	$1,750	11.1%
Houston-The Woodlands-Sugar Land, Texas	$1,275	2.0%	6.3%	$1,246	7.0%	$1,165	6.4%	$1,434	7.0%
Indianapolis-Carmel-Anderson, Ind.	$1,140	4.3%	12.8%	$980	2.2%	$1,050	11.5%	$1,260	17.0%
Jacksonville, Fla.	$1,310	4.0%	14.4%	$1,049	36.2%	$1,216	16.9%	$1,420	15.5%
Kansas City, Mo.-Kan.	$1,150	3.7%	8.9%	$905	6.5%	$1,025	5.2%	$1,350	10.3%
Las Vegas-Henderson-Paradise, Nev.	$1,397	4.3%	16.0%	$900	12.5%	$1,289	19.4%	$1,525	16.6%
Los Angeles-Long Beach-Anaheim, Calif.	$2,690	4.2%	4.3%	$2,000	0.1%	$2,400	2.4%	$3,195	5.6%
Louisville/Jefferson County, Ky.-Ind.	$1,020	1.5%	8.5%	$899	5.1%	$958	4.7%	$1,130	14.7%
Memphis, Tenn.-Miss.-Ark.	$1,150	5.3%	23.0%	$995	2.1%	$1,125	23.4%	$1,210	24.1%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$2,153	7.7%	13.3%	$1,791	15.5%	$1,913	11.8%	$2,485	13.0%
Milwaukee-Waukesha-West Allis, Wis.	$1,395	3.0%	3.3%	$1,095	0.5%	$1,299	1.5%	$1,599	4.2%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$1,495	1.8%	2.3%	$1,199	-4.0%	$1,425	1.1%	$1,812	8.2%
Nashville-Davidson-Murfreesboro-Franklin, Tenn.	$1,416	1.9%	7.3%	$1,510	6.4%	$1,348	9.6%	$1,475	7.6%
New Orleans-Metairie, La.	$1,395	3.3%	8.1%	$975	20.5%	$1,340	8.5%	$1,600	10.3%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$2,450	2.1%	-2.0%	$2,095	-13.4%	$2,250	-2.2%	$2,775	3.7%
Oklahoma City, Okla.	$850	1.9%	6.4%	$675	-12.9%	$774	9.0%	$905	5.8%
Orlando-Kissimmee-Sanford, Fla.	$1,500	3.9%	13.1%	$1,350	13.0%	$1,415	16.0%	$1,669	16.8%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del-Md.	$1,615	0.9%	2.5%	$1,325	3.9%	$1,575	4.4%	$1,800	3.2%
Phoenix-Mesa-Scottsdale, Ariz.	$1,590	3.0%	20.9%	$1,145	22.5%	$1,410	22.4%	$1,800	20.4%
Pittsburgh, Pa.	$1,365	2.3%	8.3%	$1,186	4.6%	$1,295	7.5%	$1,509	10.3%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,645	3.1%	9.7%	$1,375	3.0%	$1,595	8.1%	$1,880	16.6%
Providence-Warwick, R.I.-Mass.	$1,785	2.0%	8.6%	$1,460	-5.8%	$1,563	8.9%	$2,028	14.3%
Raleigh, N.C.	$1,380	4.7%	13.6%	$1,240	7.4%	$1,270	14.5%	$1,555	18.3%
Richmond, Va.	$1,252	1.5%	13.9%	$1,021	12.7%	$1,166	19.0%	$1,387	13.7%
Riverside-San Bernardino-Ontario, Calif.	$2,112	4.6%	24.2%	$1,374	9.9%	$1,788	20.4%	$2,449	32.7%
Rochester, N.Y.	$1,225	2.1%	10.4%	$895	7.2%	$1,135	11.3%	$1,350	8.9%
Sacramento-Roseville-Arden-Arcade, Calif.	$1,821	3.5%	17.5%	$1,500	5.8%	$1,700	18.9%	$1,954	20.2%
San Antonio-New Braunfels, Texas	$1,124	1.7%	7.0%	$965	5.5%	$1,039	9.6%	$1,284	9.1%
San Diego-Carlsbad, Calif.	$2,507	4.9%	17.0%	$2,050	16.7%	$2,315	19.0%	$2,875	18.6%
San Francisco-Oakland-Hayward, Calif.	$2,801	3.2%	-6.1%	$2,305	-12.5%	$2,582	-8.2%	$3,311	-5.0%
San Jose-Sunnyvale-Santa Clara, Calif.	$2,860	2.3%	-3.7%	$2,284	2.5%	$2,660	-2.2%	$3,238	-2.6%
Seattle-Tacoma-Bellevue, Wash.	$1,910	3.2%	1.3%	$1,545	-3.0%	$1,923	0.9%	$2,166	3.4%
St. Louis, Mo.-Ill.	$1,156	1.0%	7.8%	$950	5.7%	$1,126	9.9%	$1,240	10.2%
Tampa-St. Petersburg-Clearwater, Fla.	$1,605	5.6%	21.1%	$1,425	13.1%	$1,470	25.1%	$1,800	26.1%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,300	2.2%	11.0%	$1,123	4.0%	$1,279	12.4%	$1,392	14.6%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.	$1,979	2.5%	1.0%	$1,599	-5.9%	$1,895	0.0%	$2,369	7.0%

Methodology
Rental data as of June 2021. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas.

About Realtor.com^®
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Media Contact
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SOURCE Realtor.com

FAQ

What is the current median rent price in the U.S. as of June 2021?

The current median rent price in the U.S. is $1,575, marking an 8.1% increase year-over-year.

Which metropolitan areas reported the highest rent increases in June 2021?

The highest rent increases were reported in Riverside, Memphis, Tampa, and Phoenix, with growth rates over 20%.

How much did two-bedroom rents increase in June 2021?

Two-bedroom rents increased by 10.2% year-over-year to reach a new high of $1,770.

What are the implications of rising rental prices for Americans?

Rising rental prices are exacerbating the K-shaped recovery from the pandemic, particularly affecting lower-income individuals.

What data source provides rental price trends?

The rental price trends are reported by Realtor.com® through its Monthly Rental Report.