Rent is falling fastest in these 20 cities, thanks to surging apartment supply
While many major US cities are short on apartments, some have seen inventory rise significantly.
The US rental market remains red-hot, but steadily rising apartment inventory is giving some tenants a much-needed reprieve from price hikes.
Median one-bedroom apartment prices rose at the fastest rate in 12 months in July, according to a new report from real-estate site Zumper. The typical rate for a one-bedroom setup rose 1.7% to $1,531 compared to a 2.6% jump to $1,911 for two-bedroom units.
However, there’s a huge silver lining for renters in the report: the number of new apartments in the US just reached the highest level in 50 years. If not for that record surge, rents would surely be even higher, as landlords are less likely to raise prices when tenants have more options.
Optimists may also see lofty rents as a sign of a healthy economy. Americans are frustrated with this rent growth resurgence, but the market is bearing it since the unemployment rate is still relatively low, the US is adding hundreds of thousands of jobs every month, and wage growth is steady.
“Renters are feeling more confident about the economy and the labor market,” Zumper CEO Anthemos Georgiades said in a statement for the report. “They also hold the power in today’s market, with generous concessions being offered to commit to a new lease.”
20 cities where rent is receding fastest
Apartment dwellers looking for lower rent should start their search in the South.
Five of the 20 US real-estate markets where one-bedroom apartment prices fell by at least 5% in July were in Texas, and 11 others were in the South or Southwest regions. Unsurprisingly, the Lone Star State’s lower rents are due to surging supply, as over 100,000 new apartments have come online there so far this year.
“With the influx of new housing supply putting downward pressure on prices, renters in Texas now have the opportunity to secure amenity-rich apartments that may have previously been out of reach,” Zumper researchers wrote in the report.
Below are the 20 US markets where rent for a one-bedroom apartment fell at least 5% from July 2023, according to Zumper. Each is also listed along with its year-over-year and month-over-month rent changes, median rent price, and national rent ranking among the nation’s 100 biggest markets.
1. Fort Worth, Texas
Year-over-year rent change: -10.2%
Month-over-month rent change: -3.9%
Median rent: $1,230
National rent ranking: 63
2. Cincinnati, Ohio
Year-over-year rent change: -9.1%
Month-over-month rent change: 0%
Median rent: $1,000
National rent ranking: 84
3. Irving, Texas
Year-over-year rent change: -8.6%
Month-over-month rent change: -0.8%
Median rent: $1,280
National rent ranking: 58
4. Memphis, Tennessee
Year-over-year rent change: -8.6%
Month-over-month rent change: 5.5%
Median rent: $960
National rent ranking: 91
5. Durham, North Carolina
Year-over-year rent change: -8.3%
Month-over-month rent change: 0.7%
Median rent: $1,440
National rent ranking: 42
6. Providence, Rhode Island
Year-over-year rent change: -7.1%
Month-over-month rent change: -5.1%
Median rent: $1,690
National rent ranking: 23
7. Raleigh, North Carolina
Year-over-year rent change: -7.1%
Month-over-month rent change: 1.6%
Median rent: $1,310
National rent ranking: 56
8. Houston, Texas
Year-over-year rent change: -7%
Month-over-month rent change: -6.3%
Median rent: $1,200
National rent ranking: 66
9. Las Vegas, Nevada
Year-over-year rent change: -7%
Month-over-month rent change: -2.4%
Median rent: $1,200
National rent ranking: 66
10. Charlotte, North Carolina
Year-over-year rent change: -6.9%
Month-over-month rent change: -0.7%
Median rent: $1,490
National rent ranking: 38
11. Oakland, California
Year-over-year rent change: -6.4%
Month-over-month rent change: 2.5%
Median rent: $2,050
National rent ranking: 14
12. Atlanta, Georgia
Year-over-year rent change: -6.3%
Month-over-month rent change: -1.2%
Median rent: $1,640
National rent ranking: 25
13. Sacramento, California
Year-over-year rent change: -6.3%
Month-over-month rent change: 0%
Median rent: $1,500
National rent ranking: 33
14. Glendale, Arizona
Year-over-year rent change: -6.2%
Month-over-month rent change: -0.8%
Median rent: $1,220
National rent ranking: 65
15. Albuquerque, New Mexico
Year-over-year rent change: -5.9%
Month-over-month rent change: -2.1%
Median rent: $950
National rent ranking: 94
16. Scottsdale, Arizona
Year-over-year rent change: -5.6%
Month-over-month rent change: -3.4%
Median rent: $1,680
National rent ranking: 24
17. Nashville, Tennessee
Year-over-year rent change: -5.5%
Month-over-month rent change: 0.6%
Median rent: $1,710
National rent ranking: 22
18. Dallas, Texas
Year-over-year rent change: -5.5%
Month-over-month rent change: -4.2%
Median rent: $1,370
National rent ranking: 49
19. Austin, Texas
Year-over-year rent change: -5.1%
Month-over-month rent change: -5.7%
Median rent: $1,480
National rent ranking: 39
20. Phoenix, Arizona
Year-over-year rent change: -5.1%
Month-over-month rent change: -1.5%
Median rent: $1,300
National rent ranking: 57
