Rents in the US grew by double-digits for the 15th straight month in May, but there are signs a cooldown is coming.
The median price of a rental, which includes studios, one- and two-bedrooms, in the 50 largest US metropolitan areas, was $1,849 a month in May, up 15.5% year over year and 26.6% compared to May 2019, according to a report Wednesday from Realtor.com. However, last month’s increase marked the smallest year-over-year gain since September 2021, meaning that renters could see some relief in the future.
“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,” Danielle Hale, the chief economist of Realtor.com, said in the report.
Studio apartments saw the biggest jump in median prices in May, rising 16.9% annually to $1,530 per month, the data showed. One-bedrooms saw a 15.2% rate increase to $1,708, while prices for two-bedroom units rose to $2,076, up 14.8%.
Regionally, Miami saw the largest annual median rent increase in May, 45.8%, which brought the typical monthly rent to $2,843. Two other Florida cities made the list: Orlando at No. 2 with a rise of 28.4% to $1,955 and Tampa in the fifth slot, with rents rising 22.4% to $2,093, respectively. Providence, Rhode Island, took the third spot with a 23.8% jump to $2,198 a month, followed by San Diego, which saw a 22.7% rise in monthly rent to $3,099.
“Although rent growth remains historically high, the rate has been gradually cooling since January, pulling back from 2021’s feverish pace,” Ms. Hale continued. “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.”
In fact, if rental prices continue to slow, that benchmark may not be reached until next year, according to the report.
Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.