Nine major US cities where rental costs are plummeting fastest

Rental prices crossed the U.S. are falling arsenic large cities successful the Sun Belt proceed to add more affordable housing option, a caller study found.

According to Realtor.com's October 2024 Rental Report, the median asking rent successful the 50 largest metros registered astatine $1,720, down by $23 from September.

Despite October marking the 15th consecutive period of rent decline, the alteration was a modest $40 little than highest rent prices from August 2022.

The study noted median rent is inactive $272 higher than the aforesaid clip pre-pandemic successful 2019, but said that is connected par with wide user terms inflation.

An summation successful the fig of homes disposable to rent is cardinal to the plummeting rent prices, according to Realtor.com economist Jiayi Xu.

'Regionally, each 4 areas saw a important summation successful multifamily completions successful 2024, driven by surges successful caller starts from anterior years,' said Xu. 

It is simply a peculiarly bully clip to beryllium a renter successful Sun Belt cities, which are seeing the steepest alteration successful monthly costs. 

Cities crossed the portion person built a immense fig of apartments since the pandemic, which means proviso is present outweighing request and making it a bully clip for residents to find a deal.

'The faster maturation of rental completions successful the South has boosted rental supplies and dampened the emblematic rental terms of homes disposable successful October compared to 1 twelvemonth ago,' said Xu.

'The South witnessed the astir important emergence successful caller completions betwixt January and September 2024, with a year-over-year maturation complaint of 49.1 percent, followed by the Midwest (44.9 percent), West (23.9 percent) and Northeast (7.4 percent).' 

Here are the large cities wherever rent has fallen the most: 

Denver, Colorado

Rents for studios to two-bedroom properties dropped 5.6 percent from the twelvemonth earlier successful the Mile High City. The median rent for those properties was $1,836 successful October, according to Realtor.com.

An mean of 10,000 new apartments are being constructed successful Denver each year.  The mountainous metropolis past saw operation of this statue successful the 1970's erstwhile migration to the authorities was astatine an all-time high.

The portion averaged 5,000 caller apartments a twelvemonth until 2011 erstwhile the mean rocketed up to an astonishing 10,000 a year, The Denver Post reported.

Over the past 12 months, developers person added 21,158 caller apartments - treble the gait seen past decennary and equivalent to astir 5 percent of each the existing apartments built successful the past 100 years, Cary Bruteig, writer of the quarterly study told The Denver Post. 

Memphis, Tennessee 

Rent fell 5.4 percent from the twelvemonth earlier for studios to two-bedroom properties successful Memphis. The median rent for those properties was $1,204 successful October.

The emblematic nationalist monthly rent of $1,700 gets a 1,996-square-foot flat successful Memphis - but lone 211 quadrate feet successful an country of Manhattan, said a study by RentCafe. That is astir 10 times smaller.

Of the apical 10 zip codes wherever renters tin get the astir abstraction for their money, 4 of them are successful Memphis. 

In February, Realtor.com reported that the Birthplace of Rock 'n' Roll is 1 of the apical metro areas successful the state wherever it is cheaper to rent than it is to bargain property. 

Nashville, Tennessee

In Music City, rent decreased 5.2 percent from the twelvemonth earlier for properties ranging from studios to 2 bedrooms. In October, the median rent for those properties was $1,556.

A driblet successful rental prices comes arsenic a overmuch needed alleviation for the millions that person flocked to the area successful caller years. 

An estimated 86 radical a time moved to the Nashville metro country successful 2023, boosting the colonisation to 2.1 cardinal according to United States Census Bureau figures.

Dallas, Texas

The median rent for studios to two-bedroom properties successful Dallas was $1,462 successful October. That terms fell 4.3 percent from the twelvemonth before. 

Texas built a immense fig of apartments since the pandemic, which means proviso is present outweighing request and making it a bully clip for residents to find a deal.

Austin, Texas

Rent for properties ranging from studios to 2 bedrooms decreased 4.2 percent from the twelvemonth earlier successful Austin. The median terms successful October was $1,495.

House prices successful Austin boomed during the pandemic, arsenic its sunny climate, expansive authorities parks and comparative affordability attracted an influx of buyers.

The spread betwixt renting and buying was the widest successful Austin, Texas, according to Realtor.com. 

Chicago, Illinois

In the Windy City, rent for studios to two-bedroom properties dropped 4.1 percent from the twelvemonth before. The median rent for this properties was $1,780 successful October.

This is bully quality for renters arsenic the metropolis antecedently ranked arsenic 1 of the country's apical metros wherever it was cheaper to bargain a home than rent.

San Antonio, Texas

The median rent for studios to two-bedroom properties successful San Antonio was $1,250 successful October. That terms fell 4.1 percent from the twelvemonth before. 

San Antonio has agelong been known arsenic 1 of the astir impoverished large cities successful the America and leaders person been trying to propulsion it retired of its doom loop for decades.

These efforts person mostly progressive gentrification - trying to pull large concern to amended the labour marketplace and initiatives to redistribute metropolis taxation dollars to the poorest Texas neighborhoods.

Phoenix, Arizona

Rent for studios to two-bedroom properties successful the Arizona authorities superior decreased -4.5 percent from the twelvemonth before. The median rent was $1,512 successful October.

Charlotte, North Carolina 

In Charlotte, the median rent for studios to two-bedroom properties was $1,520 successful October. Rent decreased 3.8 percent from the twelvemonth before. 

Data from Zillow showed 53 percent of rentals successful Charlotte are offering concessions specified arsenic escaped weeks of rent to lure radical in.

'Now is simply a large clip for renters to find a deal, with much caller apartments hitting the marketplace than astatine immoderate clip successful the past respective decades,' said Zillow main economist Skylar Olsen.

'Rents are inactive growing, but it's a acold outcry from the steep rent hikes of 2 oregon 3 years ago, and renters volition find sweeteners being offered by much than fractional of rentals successful immoderate places.

'A slowing occupation marketplace and little owe rates could mean falling rents if the existent trends hold.'