July Rental Report: Nationwide Rent Holds Steady Despite Big-City Resurgence

July Highlights

• Median listed rent was $1,879 in the 50 largest US metropolitan areas, an increase of just $3 from June.
• Rent grew by 12.3% over July of 2021, the lowest year-over-year growth rate since August of last year.
• Rent is growing faster in urban areas (+12.8%) than in suburban ones (+11.7%), a reversal of the earlier pandemic-induced trend.
• Studio unit rents continue to grow at a faster rate than 1- and 2-bedroom unit rents, especially in urban areas of major cities.
• Realtor.com’s Avail survey finds that rising cost of housing is the leading cause of financial strain among renters, even more than the cost of food or transportation.

Rent Flattens and Year-over-Year Growth Continues to Slide

The median rent across the 50 largest metropolitan areas in the United States grew by just $3 from June 2022 into July, reaching $1,879. This sets yet another new high for national rent, breaking the record for the 17th month in a row, but it also signals a significant slowdown in rent growth. This was the smallest month-to-month growth in 2022 thus far, and the lowest year-over-year rent growth since August of last year. Rent is finally leveling off, with growth quickly sliding nearer to a sustainable equilibrium level as it has been since January. Despite the encouraging indicators, the challenges of record-high rent, 12.3% higher than last year, amid 8.5% inflation and just 5.2% wage growth are very real to renters. Relief in the form of moderating rent charges is coming, but it has not arrived yet.