Year-over-year rent prices declined for the 25th consecutive month in August, according to Realtor.com. August also saw the first month-over-month drop since March, signaling an anticipated seasonal slowdown heading into the fall.
Last month, asking monthly rents decreased by $38 year over year. The median asking monthly rent for studio to two-bedroom units in the 50 largest metros dropped $46 to $1,713 from the August 2022 peak; however, it’s still $249, or 17%, higher than the pre-pandemic level.
Median rent prices declined across all unit sizes. Rents for studios dropped to $1,430, down $25 year over year; one-bedrooms fell to $1,593, down $35 year over year; and two-bedrooms, which experienced the highest rent growth during the pandemic, was down $42 year over year at $1,897.
“Rental declines across the majority of markets in various-sized homes are providing new options for renters, who have been squeezed by significant increases since the pandemic,” said Realtor.com chief economist Danielle Hale. “As rents remain significantly higher than pre-pandemic levels, our Site Visitor Survey shows that the search for a more affordable home remains one of the top reasons to move across all age groups. This is likely a reason why we’re starting to see a modest uptick in renter mobility.”
When rents skyrocketed in 2021 and 2022, nearly 80% of renters stayed put, with mobility around 20.8%, according to Realtor.com. Census data shows rent mobility inched up to 21.5% in 2023 and 21.6% in 2024.
The Realtor.com Site Visitor Survey finds renters are most often considering a move for more space, affordability, or trying out a new locale.
“Renters focused on affordability are often willing to make compromises, like choosing a longer commute, fewer amenities, or fewer on-site services,” added Jiayi Xu, an economist at Realtor.com. “It shows that many households are carefully weighing costs against lifestyle, making tradeoffs to find a home that better fits their budget.”