Realtor.com® May Rental Report: Sky High U.S. Rents Surpass Pre-COVID Levels by More than 25%

Rhea-AI Summary

The U.S. median rental price reached a record high of $1,849 in May 2022, marking a 26.6% increase since 2019. Despite a 15.5% year-over-year growth in rents for the tenth consecutive month, this rise is the smallest since September 2021, suggesting a potential cooling trend. Notably, rental markets in Miami and Orlando experienced significant spikes of 45.8% and 28.4%, respectively. The report highlights a concerning affordability challenge as rising inflation continues to strain renters' finances.

Positive

• Median rent increased by 15.5% year-over-year, indicating robust rental demand.
• The deceleration in rent growth suggests potential relief for renters in the future.

Negative

• Median rental prices have climbed by 26.6% since 2019, impacting affordability.
• Sky-high rents are exacerbating financial strain for renters amidst rising inflation.

National rents grew at a double-digit annual pace (+15.5%) for the 10th straight month in May, but by the smallest amount since fall 2021 – hinting at potential relief to come later this year

SANTA CLARA, Calif., June 22, 2022 /PRNewswire/ -- The U.S. median rental price hit its latest new high of $1,849 per month in May, representing a 26.6% increase since 2019 before the pandemic began, according to the Realtor.com^® Monthly Rental Report released today. While May marked the 10th straight month of double-digit annual growth in national rents, the increase was the smallest since September 2021, offering renters a glimpse of a light at the end of the tunnel.

"There's no question that renters are facing sky high prices. And with rising inflation reflecting price jumps for both rents and everyday expenses, many renters are feeling the strain on their finances," said Realtor.com^® Chief Economist Danielle Hale. "Still, our May data suggests that the rent surge is beginning to lose some steam, in part because incomes can't keep up, even in the strong job market. Although rent growth remains historically high, the rate has been gradually cooling since January, pulling back from 2021's feverish pace. In a bit of good news for renters, the deceleration picked up in May which means if these trends continue, last month's prediction of rents surpassing $2,000 sometime this summer is going to take longer to materialize."

May 2022 Rental Metrics – National

Unit Size	Median Rent	Change over May 2021	Change over May 2020
Overall	$1,849	15.5 %	23.2 %
Studio	$1,530	16.9 %	18.8 %
1-bed	$1,708	15.2 %	22.5 %
2-bed	$2,076	14.8 %	25.5 %

 

National rents maintain double-digit growth, but cool slightly from 2021's record pace

For Americans looking for available rental units within their budgets, May trends offer bittersweet news. On one hand, national rents posted the smallest year-over-year gain (+15.5%) since September 2021, moderating from their January peak (+17.3%) for the fourth consecutive month. As a result, rents took a step back from their previous projection of surpassing $2,000 by as early as this summer. In fact, if rent growth continues cooling, typical asking rents may not reach that milestone until next year. Additionally, with the for-sale housing supply recovery forecasted to accelerate in the second half of the year, a rise in first-time buying opportunities could take even more pressure off rental demand and prices.

Still, rental affordability remained a significant challenge for many renters across the country in May. The U.S. median rental price continued its record-breaking streak, hitting a new high ($1,849) for the fifteenth month in a row and reaching 26.6% higher than in May 2019 before the onset of COVID. Additionally, all unit sizes posted double-digit rental price gains year-over-year: studios, up 16.9% to $1,530; one-bedrooms, up 15.2% to $1,708; and two-bedrooms, up 14.8% to $2,076. Rising inflation is further compounding the strain on households' monthly budgets, as higher costs of rents and regular expenses continue to outpace income growth.

Renters find relatively more affordable options where rental vacancy rates are lowest

In May, rents grew on a year-over-year basis in all 50 of the largest U.S. metros and at a faster pace than the national rate in nearly half (21) of these markets. The biggest annual rental price gains were registered in Miami (+45.8%), Orlando, Fla. (+28.4%), Providence, R.I. (+23.8%), San Diego (+22.7%) and Tampa, Fla. (+22.4%).

A key factor driving the ongoing rent surge is a lack of supply, as rental vacancy rates, which were already trending lower, have taken a sharp dive during the pandemic. These trends are magnified in the biggest cities that tend to attract younger residents, many of whom are in the early stages of their careers and looking for the flexibility in their living situations. Renting may also be a more desirable alternative to buying in these areas, where real estate has historically come at a premium. According to U.S. Census Bureau data from the first quarter of 2022, rental vacancy rates were lower inside (5.7%) versus outside (6.7%) the largest metro areas.

Realtor.com^® analysis highlights the relationship between large markets' rental availability and prices. On one end of the spectrum, major tech hub Boston held the nation's fifth highest rent ($2,889) in May after posting a vacancy rate of just 2.4% in 2022-Q1. Conversely, renters may find more affordable options in relatively smaller and less densely populated secondary metros. Of the 10 areas with the highest vacancy rates, nine were among May's lowest-priced rental markets, led by Indianapolis with a significantly lower overall rent ($1,275) and higher vacancy rate (10.9%) than in Boston (see table below).

May 2022 Rental Metrics – Top 10 Metros by Lowest Vacancy Rates in 2022-Q1

Metro	Vacancy Rate 2022- Q1	May Median Rental Price	May Median Rental Price Rank (Highest to Lowest)
Indianapolis, Ind.	10.9 %	$1,275	47
Pittsburgh, Penn.	10.6 %	$1,528	34
Raleigh, N.C.	10.1 %	$1,652	28
Houston, Texas	9.7 %	$1,444	37
Buffalo, N.Y.	9.5 %	$1,333	44
Cincinnati, Ohio	9.0 %	$1,473	35
Oklahoma City, Okla.	8.7 %	$1,000	50
Tampa, Fla.	8.4 %	$2,093	12
Birmingham, Ala.	8.0 %	$1,234	48
Charlotte, N.C.	7.8 %	$1,719	26

 

May 2022 Rental Metrics – 50 Largest U.S. Metro Areas

Metro 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.	$1,840	13.4 %	$1,699	15.3 %	$1,707	13.8 %	$2,055	13.0 %
Austin-Round Rock, Texas	$1,829	21.9 %	$1,474	22.8 %	$1,687	25.4 %	$2,018	18.7 %
Baltimore-Columbia-Towson, Md.	$1,811	11.0 %	$1,425	6.2 %	$1,707	9.4 %	$1,915	9.4 %
Birmingham-Hoover, Ala.	$1,234	8.9 %	$1,056	3.2 %	$1,164	11.3 %	$1,308	9.3 %
Boston-Cambridge-Newton, Mass.-N.H.	$2,889	21.5 %	$2,473	26.8 %	$2,693	19.7 %	$3,254	25.1 %
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$1,333	9.2 %	$1,125	2.7 %	$1,175	6.9 %	$1,495	8.7 %
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,719	18.5 %	$1,603	22.5 %	$1,617	18.9 %	$1,867	13.8 %
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$1,961	15.3 %	$1,655	23.2 %	$1,915	14.5 %	$2,175	11.0 %
Cincinnati, Ohio-Ky.-Ind.	$1,473	10.3 %	$1,212	12.7 %	$1,395	8.7 %	$1,610	7.4 %
Cleveland-Elyria, Ohio	$1,414	10.9 %	$946	5.6 %	$1,317	7.5 %	$1,537	13.4 %
Columbus, Ohio	$1,300	11.6 %	$1,090	11.1 %	$1,215	11.1 %	$1,401	8.2 %
Dallas-Fort Worth-Arlington, Texas	$1,676	19.7 %	$1,439	21.4 %	$1,543	21.0 %	$1,958	18.7 %
Denver-Aurora-Lakewood, Colo.	$2,010	12.9 %	$1,636	13.6 %	$1,884	13.5 %	$2,369	13.9 %
Detroit-Warren-Dearborn, Mich.	$1,415	7.2 %	$1,115	12.1 %	$1,185	6.7 %	$1,581	7.2 %
Hartford-West Hartford-East Hartford, Conn.	$1,754	12.4 %	$1,468	27.7 %	$1,522	5.0 %	$2,073	16.4 %
Houston-The Woodlands-Sugar Land, Texas	$1,444	11.1 %	$1,362	10.9 %	$1,325	12.7 %	$1,630	12.4 %
Indianapolis-Carmel-Anderson, Ind.	$1,275	10.9 %	$1,065	9.1 %	$1,175	11.9 %	$1,418	9.1 %
Jacksonville, Fla.	$1,593	18.0 %	$1,185	31.7 %	$1,509	20.0 %	$1,756	20.4 %
Kansas City, Mo.-Kan.	$1,316	11.1 %	$1,024	8.4 %	$1,243	17.3 %	$1,499	11.0 %
Las Vegas-Henderson-Paradise, Nev.	$1,648	20.2 %	$1,295	29.6 %	$1,518	19.7 %	$1,744	17.9 %
Los Angeles-Long Beach-Anaheim, Calif.	$3,019	17.7 %	$2,313	17.4 %	$2,789	20.9 %	$3,462	16.7 %
Louisville/Jefferson County, Ky.-Ind.	$1,224	13.8 %	$1,005	11.6 %	$1,149	13.6 %	$1,397	11.0 %
Memphis, Tenn.-Miss.-Ark.	$1,413	17.7 %	$1,151	6.7 %	$1,362	17.9 %	$1,543	18.8 %
Miami-Fort Lauderdale-West Palm Beach, Fla.	$2,843	45.8 %	$2,413	41.8 %	$2,500	38.9 %	$3,201	45.5 %
Milwaukee-Waukesha-West Allis, Wis.	$1,578	12.7 %	$1,263	10.8 %	$1,465	10.6 %	$1,770	10.6 %
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$1,590	4.2 %	$1,250	4.6 %	$1,497	3.2 %	$1,944	2.9 %
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$1,749	20.6 %	$1,685	16.2 %	$1,625	19.1 %	$1,895	22.3 %
New Orleans-Metairie, La.	$1,805	12.8 %	$1,407	27.9 %	$1,618	8.4 %	$2,108	13.9 %
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$2,872	18.7 %	$2,616	30.8 %	$2,565	14.0 %	$3,254	16.2 %
Oklahoma City, Okla.	$1,000	11.2 %	$936	33.7 %	$911	8.5 %	$1,099	14.4 %
Orlando-Kissimmee-Sanford, Fla.	$1,955	28.4 %	$1,691	24.3 %	$1,811	27.4 %	$2,221	30.3 %
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$1,800	7.5 %	$1,525	8.2 %	$1,717	5.6 %	$1,995	5.0 %
Phoenix-Mesa-Scottsdale, Ariz.	$1,788	16.6 %	$1,424	16.2 %	$1,626	15.8 %	$1,972	14.7 %
Pittsburgh, Pa.	$1,528	6.6 %	$1,275	10.4 %	$1,510	9.0 %	$1,673	3.2 %
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,798	10.9 %	$1,444	7.3 %	$1,750	11.1 %	$2,138	8.2 %
Providence-Warwick, R.I.-Mass.	$2,198	23.8 %	$1,752	16.8 %	$1,920	23.9 %	$2,500	31.6 %
Raleigh, N.C.	$1,652	19.5 %	$1,478	20.7 %	$1,525	22.0 %	$1,833	18.6 %
Richmond, Va.	$1,460	15.9 %	$1,185	18.9 %	$1,326	15.8 %	$1,570	15.0 %
Riverside-San Bernardino-Ontario, Calif.	$2,617	9.5 %	$1,842	22.4 %	$2,159	10.7 %	$2,858	8.9 %
Rochester, N.Y.	$1,367	11.6 %	$1,005	11.0 %	$1,305	14.5 %	$1,497	12.9 %
Sacramento--Roseville--Arden-Arcade, Calif.	$2,090	8.6 %	$1,844	7.8 %	$1,968	6.8 %	$2,255	7.6 %
San Antonio-New Braunfels, Texas	$1,397	17.4 %	$1,254	13.4 %	$1,282	18.8 %	$1,600	19.0 %
San Diego-Carlsbad, Calif.	$3,099	22.7 %	$2,484	19.7 %	$2,873	23.6 %	$3,450	19.0 %
San Francisco-Oakland-Hayward, Calif.	$3,056	10.1 %	$2,431	10.1 %	$2,802	10.4 %	$3,522	6.8 %
San Jose-Sunnyvale-Santa Clara, Calif.	$3,253	19.8 %	$2,545	22.4 %	$3,039	21.9 %	$3,665	19.6 %
Seattle-Tacoma-Bellevue, Wash.	$2,233	16.6 %	$1,859	21.9 %	$2,217	15.9 %	$2,673	15.5 %
St. Louis, Mo.-Ill.	$1,346	6.5 %	$1,017	7.1 %	$1,290	8.9 %	$1,469	4.9 %
Tampa-St. Petersburg-Clearwater, Fla.	$2,093	22.4 %	$1,965	21.0 %	$1,879	21.2 %	$2,342	24.6 %
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,567	12.7 %	$1,352	10.0 %	$1,474	12.5 %	$1,686	9.3 %
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$2,150	12.0 %	$1,745	12.2 %	$2,054	11.9 %	$2,562	9.9 %

 

Methodology

Data as of May 2022 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com^®. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, defined by the Core-Based Statistical Area (CBSA). Realtor.com^® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019.

Note: With the release of its May 2022 Rental Report, Realtor.com^® incorporated a new and improved methodology (see details here). As a result of these changes, the rental data released since May 2022 will not be directly comparable with prior publications and downloaded files. However, future releases, including historical data, will consistently apply the new methodology.

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^®.

Media Contact
rachel.conner@move.com 

 

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SOURCE Realtor.com

FAQ

What is the U.S. median rental price in May 2022?

The U.S. median rental price hit $1,849 in May 2022.

How much did national rents increase year-over-year in May 2022?

National rents increased by 15.5% year-over-year in May 2022.

Which U.S. metro areas saw the highest rent increases in May 2022?

Miami and Orlando had significant rent increases of 45.8% and 28.4%, respectively.

How has rent growth changed since January 2022?

Rent growth has moderated from a peak of 17.3% in January 2022.

What factors are contributing to high rental prices in 2022?

A lack of supply and rising inflation are major factors driving high rental prices.