The rental market boom is showing a seasonal dip. Rent levels dropped in September for the first time in six months, according to the latest market report from Rent.com.
Overall rent levels dipped 2% compared to August, the largest monthly decrease since last year. The national median rent price is $2,011, the cheapest price since April, the research firm found.
Still, prices were slightly higher than a year ago, rising 0.4% due to increased inventory and lower-than-usual demand, as prices had steadily risen since bottoming out in February.
Overall, state rents remain up over the year, maintaining the 2023 trend of a 60/40 split of markets that are up versus down. In September, 62.7% of markets registered a yearly price increase, compared to 37.2% that saw a price decline in the same period.
However, price growth nationally is being held down by below-normal demand and increased inventory, the report noted.
The change in rent prices was not the same across the country. The Midwest saw the largest price hike of 5% growth compared to last year, while rent prices in the West have been declining for several months, declining 1.61% compared to September 2022.
In the West, Montana led declines with a yearly drop of 15.5%. Washington and Oregon also saw the third and fourth-highest yearly decline. Elsewhere, Idaho, Nevada, and Utah declined in the 5% to 8% range.
In the Northeast, Pennsylvania was the only state to have a large decline, slumping 4.5% year over year. Meanwhile, in the South, Florida led with the highest monthly decline of more than 3%, while other traditionally expensive states, including California, New York, and Massachusetts, also saw monthly declines of over 2%.
State | Year-over-Year Rent Growth | Month-over-Month Change in Rent | Median Rent |
Montana | -15.49% | -0.22% | $1,715 |
Oklahoma | -10.62% | -2.40% | $960 |
Oregon | -10.09% | -0.73% | $1,702 |
Washington | -7.96% | -0.97% | $2,312 |
Idaho | -7.84% | -2.98% | $1,570 |
Nevada | -5.72% | -0.68% | $1,566 |
Utah | -5.71% | -1.38% | $1,602 |
Florida | -5.49% | -3.35% | $2,114 |
Pennsylvania | -4.50% | -0.95% | $1,651 |
Virginia | -3.00% | -1.29% | $1,986 |
A FREE account gets you access to over 200 free forms. Upgrade to a paid account (monthly, annually, or lifetime)
EZLandlord Forms Is Offering 15% 𝙊𝙛𝙛 For New Customers!
We cannot recommend these guys enough!
👉 State Specific Leases 👉 400 Forms to make your landlord-tenant relationship top notch 👉 200 FREE forms for those not ready to purchase 👉 4.8 Rating with over 5000 Reviews 👉 Pro Members get access to ALL leases and forms for $12 per month OR $75 if you purchase the annual membership 👉 YOU CAN BUY LIFETIME FORMS for $399
USE CODE 𝐒𝐓𝐀𝐂𝐈𝐄𝟏𝟓 to get 15% OFF ALL first-time purchases, EVEN THE LIFETIME FORMS!
Yearly price increases were driven by the Midwest region, where seven of the largest gainers are located. Iowa had the largest yearly increase in the area, jumping 12%. Mississippi leads with the highest yearly rise, skyrocketing almost 16% from a year ago, and was also the only Southern state to make it to the top 10 gainers list. Still, its monthly gains were relatively flat.
Meanwhile, both Dakotas saw a yearly increase despite a 2% decline over the month for South Dakota, with Kansas, Wisconsin, and Illinois also having strong yearly growth. Illinois was the only state with a monthly rent increase above 1.5%.
New York also saw a yearly rise in prices of 11.28% despite a monthly decline, while New Hampshire was flat over the month but rose 7.38% compared to the same period a year ago.
State | Year-over-Year Rent Growth | Month-over-Month Change in Rent | Median Rent |
Mississippi | 15.86% | 0.06% | $1,175 |
Iowa | 12.13% | -0.97% | $1,158 |
South Dakota | 11.32% | -1.91% | $1,164 |
New York | 11.28% | -2.18% | $2,762 |
North Dakota | 9.58% | 0.04% | $1,067 |
Minnesota | 9.41% | -0.21% | $1,599 |
Kansas | 8.99% | 0.02% | $1,207 |
Wisconsin | 8.95% | 0.27% | $1,534 |
New Hampshire | 7.38% | 0.17% | $1,987 |
Illinois | 6.85% | 1.81% | $2,019 |
September’s decrease might just reflect a seasonal change that landlords haven’t seen since the pandemic, the report found. In other words, the trend of prices falling in the fall and winter before rising again in the spring and summer could be back.
While the monthly price declines could be concerning for landlords, the yearly rise in prices shows that the rental market is still strong. And with the Fed not backing down from rising interest rates and housing prices continuing to skyrocket, it’s likely that the rental boom could be here to stay for just a little while longer.
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
Click below to view one of our newsletters!
By Ryan Squires When setting the rental rate for a rental property or looking…
October 29, 2024Provided by Avail Knowing how to be a good landlord requires extensive knowledge of renting…
October 29, 2024