Realtor.com® March Rental Report: U.S. Rental Prices Soar by Nearly 20% in Just Two Years

Rhea-AI Summary

U.S. rental prices surged to a record high of $1,807 in March 2022, reflecting a 19.3% increase since March 2020. Sun Belt metros dominated the fastest rental growth, with Miami leading at 58.0%. The analysis shows a shift as renters leave expensive tech hubs for affordable areas, with demand outpacing supply amid low vacancy rates. Despite recent moderation in rent growth, challenges remain due to rising inflation and stagnant income growth, potentially limiting renters' affordability. Large tech cities recorded slower rent increases, yet still command high prices.

Positive

• Median U.S. rent reached an all-time high of $1,807, indicating strong demand.
• Miami's rental prices increased by 58.0%, showcasing a significant market shift.
• Rents for two-bedroom and one-bedroom units rose 21.9% and 17.9%, respectively, revealing increasing demand for larger living spaces.

Negative

• Rising rents outpace income growth, making rental affordability a major challenge.
• Vacancy rates are at record lows, indicating a mismatch between supply and demand, which could lead to continued upward pressure on rents.

National rents hit a new high of $1,807 in March; Sun Belt metros top the list of biggest two-year rent gains, beating out large tech hubs

SANTA CLARA, Calif., April 14, 2022 /PRNewswire/ -- U.S. rental prices grew by nearly 20% from March 2020 to 2022 during the pandemic, according to the Realtor.com^® Monthly Rental Report released today. Additionally, two-year rental trends indicate some redistribution of higher rents across the 50 largest markets during COVID, as renters migrated from expensive big tech cities to relatively more affordable areas. Sun Belt metros topped the list of fastest-growing rental markets from March 2020-2022, led by Miami, Riverside, Calif. and Tampa, Fla., while big tech hubs posted many of the country's smallest two-year rent gains.

"With asking rents nearly 1.2 times higher than two years ago, our March data highlights rising rental affordability challenges faced by many Americans today," said Realtor.com^® Chief Economist Danielle Hale. "At the same time, March rental trends offer early signs of relief from the feverish pace of rent growth, which moderated year-over-year for the second month in a row. We expect cooling to continue over time, but the jury is still out on whether rent growth will hit single-digits by the end of 2022. This is largely due to the mismatch between rental supply, with vacancy rates at record-lows, and demand rising as some would-be buyers potentially turn to renting in the face of higher home prices and mortgage rates. While the jobs market is strong, it's unlikely that we'll see enough income growth to keep rents under 30% of monthly paychecks – especially with higher inflation and everyday costs. Still, there is a silver lining for renters, as rents won't be able to sustain an accelerated pace if incomes can't keep up."

March 2022 Rental Metrics – National

Unit Size	Median Rent	Change over March. 2021	Change over March. 2020
Overall	$1,807	17.0% ($263)	19.3% ($292)
Studio	$1,483	16.9% ($215)	12.6% ($166)
1-bed	$1,659	16.3% ($232)	17.9% ($252)
2-bed	$2,028	16.4% ($286)	21.9% ($364)

Rents grow by nearly 20% in the two years since the pandemic began

The U.S. median rental price hit a new high of $1,807 in March, up 19.3% in just two years, highlighting a roller coaster ride of change since the pandemic began. Following a slowdown in 2020 at the onset of COVID, rents significantly made up lost ground in 2021 and have since maintained a feverish pace of annual rent growth. In fact, March marked the eighth consecutive month of double-digit annual rent gains (+17.0%), even as the pace moderated slightly over February (+17.1%).

Although the underlying reasons have shifted over the course of the pandemic, data suggests that renting remains a popular option for Americans who desire flexibility. With the rise in remote work earlier on, renting offered an attractive option for those looking to explore living in relatively affordable markets further from big tech cities. Now that for-sale home prices and mortgage rates are climbing, many would-be buyers are turning to renting and driving up rental prices. In March, rents grew nearly four-times faster year-over-year (+17.0%) than in March 2020 (+4.3%).

With demand for more living space rising during COVID, rental prices for two-bedroom (+21.9%) and one-bedroom (+17.9%) units increased at the fastest rates from March 2020-2022. Studio rents, which experienced the biggest rental declines at the onset of COVID, posted relatively smaller two-year gains (+12.6%) in March. However, studio rents are quickly making up lost ground, posting the highest annual rental price gains among unit sizes for the third consecutive month in March.

Pandemic drives some redistribution of the fastest-growing rental markets

Among the 50 largest U.S. metros, COVID rental trends indicate some redistribution of high rents from the biggest tech cities to relatively more affordable metros outside of major downtowns. In March, big tech cities accounted for none of the top 10 metros by highest two-year rent growth. Instead, this list was dominated by Sun Belt markets, led by Miami with an increase of 58.0% over March 2020 (see table below).

Additionally, big tech cities represented five of the 10 slowest-growing rental markets from March 2020-2022. Despite these setbacks, many major tech hubs continue to command some of the nation's highest rents. Even San Jose, where rents remain largely unchanged from March 2020 levels (+0.1%), claimed the country's highest median rent ($3,075). Still, March rental data signals some final opportunities for renters to find savings in major metros like San Francisco, where rents for studios (-13.0%) and one-beds (-3.3%) declined over March 2020.

"With booming employment and the growing back-to-office wave stoking demand, big rents are back in big tech cities. Still, our March data suggests select tech hubs like San Francisco might still offer bargains on studios relative to pre-COVID rents. And for some, such as Gen Zers striking out on their own, even small rental savings could make a large difference," said George Ratiu, Realtor.com^® Senior Economist & Manager of Economic Research. "Regardless of your stage of life, with rising prices taking a bigger bite out of paychecks, it's important to stay focused on financial health by keeping rental costs to a smaller percentage of your take-home pay. A tool like the Realtor.com^® Rental App can help you customize your search and get alerts about newly-listed rentals in your budget." 

March 2022 Rental Metrics – Top Markets by Biggest & Smallest Rent Gains Over March 2020

Biggest-Growth Markets, March 2020-2022				Smallest-Growth Markets, March 2020-2022
Rank	Metro	Average 2-yr Rent Change	Median rent, March 2022	Rank	Metro	Average 2-yr Rent Change	Median rent, March 2022
1	Miami, Fla.	58.0%	$2,988	1	Buffalo, N.Y.	-2.3%	$1,293
2	Riverside, Calif.	48.2%	$2,687	2	San Jose, Calif.*	0.1%	$3,075
3	Tampa, Fla.	45.8%	$2,114	3	San Francisco, Calif.*	0.3%	$2,982
4	Memphis, Tenn.	41.4%	$1,403	4	Minneapolis, Minn.	3.9%	$1,572
5	Orlando, Fla.	34.7%	$1,886	5	Washington, DC*	5.1%	$2,093
6	Las Vegas, Nev.	34.4%	$1,623	6	Seattle, Wash.*	6.1%	$2,129
7	New Orleans, La.	33.3%	$1,800	7	Pittsburgh, Pa.	6.3%	$1,485
8	Richmond, Va.	30.0%	$1,430	8	Chicago, Ill.*	6.7%	$1,856
9	Jacksonville, Fla.	29.2%	$1,580	9	Milwaukee, Wis.	8.4%	$1,515
10	Phoenix, Ariz.	29.0%	$1,896	10	Detroit, Mich.	8.8%	$1,360

*10 largest U.S. tech cities  

 

March 2022 Rental Metrics – 50 Largest U.S. Metros

Metropolitan Statistical Area	Overall Median Rent	Overall Rent YoY	Studio Median Rent	Studio Rent YoY	1-br Median Rent	1-br Rent YoY	2-br Median Rent	2-br Rent YoY
Atlanta-Sandy Springs-Roswell, Ga.	$1,822	18.8%	$1,667	18.3%	$1,688	18.9%	$2,025	18.7%
Austin-Round Rock, Texas	$1,777	25.9%	$1,447	25.5%	$1,640	27.6%	$1,924	20.9%
Baltimore-Columbia-Towson, Md.	$1,768	10.5%	$1,467	15.9%	$1,707	13.6%	$1,875	10.1%
Birmingham-Hoover, Ala.	$1,195	8.4%	$982	3.0%	$1,117	6.8%	$1,265	6.9%
Boston-Cambridge-Newton, Mass.-N.H.	$2,757	21.9%	$2,350	27.0%	$2,566	19.5%	$3,034	21.4%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$1,293	9.5%	$1,125	33.5%	$1,169	8.7%	$1,418	8.3%
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,647	19.9%	$1,509	20.0%	$1,547	20.3%	$1,805	16.9%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$1,856	11.3%	$1,429	10.3%	$1,850	12.8%	$2,083	6.8%
Cincinnati, Ohio-Ky.-Ind.	$1,395	7.7%	$1,139	11.9%	$1,337	7.4%	$1,550	5.9%
Cleveland-Elyria, Ohio	$1,383	6.6%	$969	4.8%	$1,319	6.1%	$1,500	9.6%
Columbus, Ohio	$1,254	10.8%	$1,052	5.7%	$1,178	11.6%	$1,358	8.6%
Dallas-Fort Worth-Arlington, Texas	$1,629	21.2%	$1,357	18.8%	$1,488	22.6%	$1,920	21.7%
Denver-Aurora-Lakewood, Colo.	$1,938	15.2%	$1,601	15.1%	$1,813	15.5%	$2,274	16.0%
Detroit-Warren-Dearborn, Mich.	$1,360	0.7%	$1,074	2.3%	$1,140	3.8%	$1,500	1.7%
Hartford-West Hartford-East Hartford, Conn.	$1,625	8.7%	$1,512	33.8%	$1,463	5.1%	$1,923	14.1%
Houston-The Woodlands-Sugar Land, Texas	$1,430	14.4%	$1,333	12.1%	$1,301	15.1%	$1,601	14.3%
Indianapolis-Carmel-Anderson, Ind.	$1,225	11.5%	$1,040	10.2%	$1,124	9.7%	$1,362	13.5%
Jacksonville, Fla.	$1,580	23.2%	$1,309	19.9%	$1,464	22.1%	$1,748	28.0%
Kansas City, Mo.-Kan.	$1,221	11.0%	$1,017	7.6%	$1,084	10.4%	$1,420	11.6%
Las Vegas-Henderson-Paradise, Nev.	$1,623	25.1%	$1,280	13.8%	$1,496	26.7%	$1,741	26.0%
Los Angeles-Long Beach-Anaheim, Calif.	$3,000	20.2%	$2,235	21.0%	$2,731	23.2%	$3,410	17.6%
Louisville/Jefferson County, Ky.-Ind.	$1,198	13.3%	$1,002	11.3%	$1,133	13.5%	$1,363	10.6%
Memphis, Tenn.-Miss.-Ark.	$1,403	24.6%	$1,233	13.7%	$1,330	24.8%	$1,553	27.6%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$2,988	57.2%	$2,499	50.9%	$2,614	53.7%	$3,415	56.1%
Milwaukee-Waukesha-West Allis, Wis.	$1,515	8.6%	$1,223	8.7%	$1,419	9.3%	$1,750	10.4%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$1,572	5.3%	$1,230	4.5%	$1,481	5.3%	$1,905	3.8%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$1,727	23.1%	$1,707	24.0%	$1,604	21.8%	$1,864	23.2%
New Orleans-Metairie, La.	$1,800	15.2%	$1,257	0.6%	$1,594	6.3%	$2,053	14.0%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$2,750	14.6%	$2,525	26.3%	$2,496	9.1%	$3,056	10.9%
Oklahoma City, Okla.	$943	10.9%	$797	15.7%	$854	10.9%	$1,000	9.1%
Orlando-Kissimmee-Sanford, Fla.	$1,886	35.0%	$1,645	27.5%	$1,739	33.0%	$2,129	40.9%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$1,760	8.3%	$1,406	7.5%	$1,656	3.8%	$1,955	5.7%
Phoenix-Mesa-Scottsdale, Ariz.	$1,896	23.4%	$1,405	19.6%	$1,655	24.5%	$2,224	18.8%
Pittsburgh, Pa.	$1,485	7.9%	$1,218	9.4%	$1,449	11.0%	$1,595	1.0%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,740	11.3%	$1,413	11.9%	$1,685	10.6%	$2,021	12.7%
Providence-Warwick, R.I.-Mass.*	---	---	---	---	---	---	---	---
Raleigh, N.C.	$1,591	23.1%	$1,452	22.5%	$1,471	24.7%	$1,750	20.7%
Richmond, Va.	$1,430	18.5%	$1,137	15.7%	$1,300	19.5%	$1,538	16.0%
Riverside-San Bernardino-Ontario, Calif.	$2,687	13.9%	$1,515	1.7%	$2,155	14.9%	$3,000	16.1%
Rochester, N.Y.	$1,333	11.4%	$980	10.7%	$1,238	13.9%	$1,430	9.6%
Sacramento--Roseville--Arden-Arcade, Calif.	$2,028	12.1%	$1,895	15.6%	$1,873	8.7%	$2,204	12.1%
San Antonio-New Braunfels, Texas	$1,389	22.3%	$1,272	22.4%	$1,264	22.7%	$1,583	22.2%
San Diego-Carlsbad, Calif.	$3,016	24.8%	$2,376	20.2%	$2,716	23.3%	$3,375	21.5%
San Francisco-Oakland-Hayward, Calif.	$2,982	11.4%	$2,367	18.3%	$2,750	12.6%	$3,483	11.4%
San Jose-Sunnyvale-Santa Clara, Calif.	$3,075	17.1%	$2,421	21.2%	$2,840	17.2%	$3,465	17.6%
Seattle-Tacoma-Bellevue, Wash.	$2,129	17.5%	$1,774	23.5%	$2,095	16.5%	$2,599	17.9%
St. Louis, Mo.-Ill.	$1,310	9.2%	$995	2.1%	$1,238	9.9%	$1,450	9.6%
Tampa-St. Petersburg-Clearwater, Fla.	$2,114	31.1%	$1,944	27.3%	$1,876	31.4%	$2,358	29.8%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,524	15.1%	$1,300	9.7%	$1,449	12.6%	$1,634	13.6%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$2,093	13.1%	$1,721	14.8%	$2,000	11.9%	$2,440	9.9%

 

Methodology

Rental data as of March 2022 for units advertised as for-rent on Realtor.com^®. 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. We use communities that reliably report data each month within the top 50 largest metropolitan areas. National rents were calculated by averaging the medians of the 50 largest metropolitan areas. *Providence, RI March 2022 rental data is currently under review. 

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 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. 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. For more information, visit Realtor.com^®.

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SOURCE Realtor.com

FAQ

What is the current median rent in the U.S. for March 2022?

The median rent in the U.S. reached a record high of $1,807 in March 2022.

Which U.S. city saw the highest rent increase over the last two years?

Miami, Florida, experienced the highest rent increase at 58.0% from March 2020 to March 2022.

How much have rental prices increased since the pandemic began?

Rental prices in the U.S. have grown nearly 20% from March 2020 to March 2022.

Are rental prices moderating in the U.S.?

Yes, rental price growth has moderated for the second consecutive month, although it remains high.

Which areas are experiencing the fastest rental growth?

Sun Belt metros, particularly Miami, Riverside, and Tampa, are experiencing the fastest rental growth.