Realtor.com® March Rental Report: California Markets See First Rent Decline in 2 Years
The March Rental Report by Realtor.com highlights a significant divergence in rental market trends across the U.S. As high-cost markets in the West, including San Francisco and Los Angeles, experience year-over-year price declines of 0.8%, numerous Midwestern cities such as Indianapolis and Cincinnati see rent increases of 10.3% and 9.6%, respectively. Nationally, the median rent for the 50 largest metros has increased to $1,732, reflecting a $15 rise from the previous month but a $32 drop from the peak last year. This indicates a cooling of the rental market after a high growth rate of 16.4% in January 2022. The report also notes the impact of tech layoffs on California's rental prices and emphasizes the affordability factor driving demand in lower-cost regions.
- Midwest markets like Indianapolis (10.3%) and Cincinnati (9.6%) show strong rent growth.
- Overall rent growth has cooled, providing relief for consumers facing high prices.
- National median rent has increased but remains lower than last year's peak, indicating stabilization.
- Western markets like San Francisco and Los Angeles have experienced their first year-over-year rent declines in two years (0.8%).
- California markets, particularly Riverside-San Bernardino, saw significant declines in rental prices (-5.3%).
- Potential continued impact of tech layoffs and a weakening job market may further affect California rental prices.
While expensive markets in the West saw declines, prices in the more affordable Midwest continued to rise even faster
"Mirroring trends that we've seen in the for-sale market, affordability is shaping housing demand, with lower-cost areas continuing to see stronger rent growth, home price increases, and competitive real estate markets. Markets in the Midwest and Northeast are benefiting from this trend while cities in the West are adjusting in the opposite direction," said Realtor.com® Chief Economist
In March, 14 markets saw year-over-year price declines, including
On the flip side, Midwestern markets including
Rents up significantly since the pandemic began
Nationally, the
Rental Data – 50 Largest Metropolitan Areas –
Metro | 0-2 Bedrooms | 0-2 Bedrooms Rent | Unemployment Rate | 0-2 Bedrooms Median |
-0.7 % | 0.1 ppt | 8.0 % | ||
-2.5 % | 0.5 ppt | -0.1 % | ||
2.1 % | -0.5 ppt | -2.8 % | ||
5.9 % | 0 ppt | 7.3 % | ||
5.7 % | -0.5 ppt | 3.5 % | ||
NA | NA | -0.1 ppt | 9.5 % | |
-0.5 % | -0.7 ppt | 7.0 % | ||
6.8 % | -0.2 ppt | 4.0 % | ||
9.6 % | -1.1 ppt | 5.1 % | ||
1.2 % | -0.6 ppt | 4.8 % | ||
4.9 % | -0.3 ppt | 9.9 % | ||
-1.0 % | 0.2 ppt | -0.3 % | ||
-0.1 % | -0.7 ppt | -7.1 % | ||
6.6 % | -1 ppt | 1.6 % | ||
NA | NA | -0.5 ppt | NA | |
3.7 % | 0.1 ppt | 6.4 % | ||
10.3 % | 0 ppt | 1.3 % | ||
1.6 % | -0.6 ppt | 12.2 % | ||
5.7 % | -0.4 ppt | 3.4 % | ||
-4.3 % | -0.2 ppt | -3.0 % | ||
-0.8 % | -0.5 ppt | -1.4 % | ||
7.4 % | 0.1 ppt | NA | ||
2.1 % | -0.3 ppt | 14.6 % | ||
2.4 % | -0.9 ppt | 7.2 % | ||
7.8 % | -0.7 ppt | NA | ||
2.4 % | 0.3 ppt | 5.4 % | ||
-0.8 % | 0 ppt | 4.1 % | ||
NA | NA | -0.4 ppt | NA | |
10.2 % | -1.2 ppt | 10.3 % | ||
9.2 % | 0 ppt | 6.5 % | ||
1.1 % | -0.8 ppt | 13.0 % | ||
1.7 % | -0.4 ppt | 5.3 % | ||
-4.7 % | -0.4 ppt | 1.2 % | ||
8.3 % | 0 ppt | -6.9 % | ||
2.8 % | 0.7 ppt | -1.9 % | ||
NA | NA | -0.2 ppt | 7.6 % | |
-0.9 % | 0 ppt | 8.0 % | ||
4.7 % | 0.2 ppt | NA | ||
-5.3 % | -0.2 ppt | 3.0 % | ||
NA | NA | -0.4 ppt | NA | |
-2.1 % | -0.2 ppt | 6.0 % | ||
7.4 % | -0.4 ppt | 3.9 % | ||
4.0 % | 0.3 ppt | 7.6 % | ||
2.0 % | -0.4 ppt | 6.2 % | ||
-0.8 % | -0.2 ppt | -4.7 % | ||
4.5 % | -0.1 ppt | 0.7 % | ||
0.8 % | 0 ppt | 12.4 % | ||
-2.7 % | -0.7 ppt | 14.2 % | ||
5.2 % | 0.2 ppt | 13.1 % | ||
4.4 % | -0.3 ppt | 6.6 % |
Methodology
Rental data as of March 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 March 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
Media contact: press@realtor.com
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SOURCE Realtor.com
FAQ
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