Apartments in these 24 cities are getting cheaper fastest, leaving landlords and real estate investors in shambles as rent growth heads toward negative territory
- Rent is rising at a slower pace in the US and is even declining outright in some markets.
- Real-estate investors can no longer count on the steady rent increases they’ve enjoyed recently.
- Here are two dozen US cities where rent was at least 5% lower this month compared to October 2022.
Rent growth is slowing across the country, and apartments are now cheaper than they were last year in dozens of cities.
According to a new report from Zumper, a rental platform, the median going rate for a one-bedroom apartment in the United States in October was $1,505 and $1,862 for a two-bedroom fixture.
Both figures were up slightly from 2022, but were 0.4% and 0.2% lower than in September. Zumper researchers noted that the one-bedroom unit’s month-over-month drop was the largest of 2023. Only a quarter of the country’s 100 largest markets saw one-bedroom prices rise from the previous month, while 59 fell and 16 remained flat.
Apartment prices will almost certainly begin to fall precipitously in the near future. Rent has been falling in the top 50 US markets, according to data from Realtor.com, since earlier this year, though Zumper’s broader data set hasn’t recorded lower rent since early in the pandemic.
However, there is a strong possibility that rent growth will fall below zero in the coming months.
“If the current pattern continues, we’ll likely see negative year-over-year growth by the end of winter,” Zumper CEO Anthemos Georgiades said in a report statement.
She went on to say: “Demand remains soft while a record amount of supply is hitting the market, creating a lot of uncertainty and distress throughout the real estate industry — especially for companies and individuals that invested heavily in multifamily developments over the last five years.”
Rent declines would be a major headache for real-estate investors who purchased during the boom years of 2020 and 2021. Landlords aren’t used to receiving less rent, and while many would be fine financially, those who purchased properties aggressively may begin to sweat.
“Year-over-year rent price declines are extremely rare and can indicate trouble for investors,” Georgiades wrote in the report.
24 cities with skyrocketing rent growth
According to Zumper, the median rent for a one-bedroom apartment is at least 5% lower now than it was in 2022 in the 24 markets listed below. Each city’s year-over-year and month-over-month rent changes, average rent price, and national rent ranking among the top 100 US cities are included.
1. Augusta, Georgia
Year-over-year rent change: -15.2%
Month-over-month rent change: -4.5%
Average rent: $840
National rent ranking: 95
Source: Zumper
2. Lincoln, Nebraska
Year-over-year rent change: -14.4%
Month-over-month rent change: -4.9%
Average rent: $770
National rent ranking: 98
Source: Zumper
3. St. Louis, Missouri
Year-over-year rent change: -13%
Month-over-month rent change: -4.4%
Average rent: $870
National rent ranking: 94
Source: Zumper
4. Fresno, California
Year-over-year rent change: -12%
Month-over-month rent change: -4.6%
Average rent: $1,250
National rent ranking: 64
Source: Zumper
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5. Greensboro, North Carolina
Year-over-year rent change: -12%
Month-over-month rent change: 0%
Average rent: $950
National rent ranking: 86
Source: Zumper
6. San Antonio, Texas
Year-over-year rent change: -11.1%
Month-over-month rent change: -2.8%
Average rent: $1,040
National rent ranking: 77
Source: Zumper
7. Winston-Salem, North Carolina
Year-over-year rent change: -10.8%
Month-over-month rent change: -5.2%
Average rent: $910
National rent ranking: 90
Source: Zumper
8. Henderson, Nevada
Year-over-year rent change: -8.9%
Month-over-month rent change: -3.4%
Average rent: $1,430
National rent ranking: 38
Source: Zumper
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9. Irving, Texas
Year-over-year rent change: -8.6%
Month-over-month rent change: -2.3%
Average rent: $1,270
National rent ranking: 60
Source: Zumper
10. Sacramento, California
Year-over-year rent change: -8.2%
