Real Estate

Rent Increases Are Softening, but Not Everywhere

The tight home-buying market is forcing many people to stay in their rentals, but the good news is that their rent may not be rising quite as fast as it has in recent years.

The July rent report by the rental platform Zumper found that rate increases are slowing in many of the 100 largest U.S. cities (counter to what is typically expected during a peak moving season), though not decreasing. July’s national median rent of $1,506 for a one-bedroom apartment was a tenth of a percent higher than it was in June, and 3.9 percent higher than it was last July — marking the smallest one-year increase since June 2021, and well shy of the double-digit increases of 2022.

Since last July, rents are down in 38 of the 100 cities, steady in seven, and up in 55. The biggest drop was found in Lincoln, Neb., where the median one-bedroom costs $830 a month — 18.6 percent lower than a year ago. Also an example of short-term volatility, Lincoln saw rents rise more than 6 percent from June to July, the steepest monthly increase in the report.

New York had the distinction of having the highest median one-bedroom rent in the country ($3,980), up 5.3 percent since last year. But increases were far greater in other areas. Jersey City, N.J., the second most expensive city, had a median rent of $3,390, up 23.3 percent over a year. Durham, N.C., saw a 23.6 percent spike, to $1,570, while Miami, with the fourth most expensive one-bedrooms at $2,800, was up 12 percent.

This week’s chart, based on Zumper’s data, reveals the 10 cities where one-bedroom rents were least expensive in July, and the 10 where they were most expensive, as well as how much the rent changed over a year.

For weekly email updates on residential real estate news, sign up here.

Back to top button