Rents across the US are FALLING by up to 9.8% after spiking to record levels over the summer - but some are still soaring by 31%
- The national median asking rent rose to $2,032 in July, up 14 percent over the previous year, the smallest annual increase since November 2021
- While still high, it represents a downward trend in asking price from 15 percent in June and 16 percent in May
- Among the areas seeing the highest median asking rent were Nassau County, New York, New Brunswick, New Jersey, New York City and Newark
- Milwaukee, Minneapolis and Baltimore were the only US metro areas to see a fall in median asking price, according to Redfin
- Although experts expect the markets to cool off by 2023, some say prospective renters could see better deals compared to the summer chaos
Rents are starting to come down by up to 9.8 percent after spiking to record levels this past summer, but some cities have seen asking prices soar by 31 percent.
The national median asking rent rose to $2,032 in July, up 14 percent over the previous year, the smallest annual increase since November 2021, according to a new report from Redfin.
While that percentage is still high, it has decreased from 15 percent in June and 16 percent in May.
Among the areas seeing the highest median asking rent were Nassau County, New York, New Brunswick, New Jersey, New York City and Newark, all set at $4,209 in July, up 23 percent from last year.
The cities that saw the biggest changes over the year were Cincinnati at 31.4 percent, Nashville at 26.5 percent, and Pittsburg at 24.4 percent.
Milwaukee, Minneapolis and Baltimore were the only US metro areas to see a fall in median asking price, dipping 9.8, 8.1, and 0.3 percent, respectively.
The change comes amid a cool down in the frenzied housing market that saw people priced out of owning a home competing with others for apartments, which drove rent up.
![](https://i.dailymail.co.uk/1s/2022/09/07/19/62173185-11186149-image-a-37_1662576277609.jpg)
![The national median asking rent rose to $2,032 in July, up from $1,790 last year](https://i.dailymail.co.uk/1s/2022/09/07/17/62166651-11186149-image-a-35_1662567688268.jpg)
The national median asking rent rose to $2,032 in July, up from $1,790 last year
![It represents a 14 percent rise year-over-year, but stands as a downward trend in asking rent after the increase was 15 percent in June and 16 percent in May](https://i.dailymail.co.uk/1s/2022/09/07/17/62166649-11186149-image-a-34_1662567684124.jpg)
It represents a 14 percent rise year-over-year, but stands as a downward trend in asking rent after the increase was 15 percent in June and 16 percent in May
Christopher Mayer, professor of real estate at Columbia Business School, said people looking for an apartment now might have a better experience than they did in May or June.
'We're not seeing rents go up as quickly, the rental market is softening a little bit,' he said.
Experts say the market could slow further toward the end of the year, but there's still a lot of uncertainty.
'I would not be surprised if we get to 2023 before things really get back to normal,' said Brian Carberry, senior managing editor of Rent.com, an apartment search website owned by Redfin.
Much depends on where you live. Cities in Florida such as Boca Raton and West Palm Beach have seen rents decrease 0.1 percent and 0.5 percent, respectively, compared to last month.
But according to Apartment List, rents in California coastal cities such as San Diego have continued to increase over the past year.
In Rochester, New York, rent was up 15.3 percent in August over the same month the previous year, according to Apartment List. An average two-bedroom apartment in the Rochester area was $1,318 in August, compared with $1,116 a year ago.
In New York City, average rental price in Manhattan hit another all-time-high, with average rent up $5,113 in July, a 28 percent increase from the precious year, according to real estate brokerage firm Douglas Elliman.
Median rent, which is a better reflection of the prices a typical renter would face, hit bout $4,150, a 2.5 percent increase from June and 29 percent bump from last year.
Most Manhattan landlords require annual income of 40 times the monthly rent, meaning renters would need to bring home a salary of at least $166,000 to secure the median apartment.
![The city that saw the biggest change over the year was Cincinnati, where median rent rose to $1,750, a 31.4 percent increase](https://i.dailymail.co.uk/1s/2022/09/07/19/62172993-11186149-image-a-41_1662576417505.jpg)
The city that saw the biggest change over the year was Cincinnati, where median rent rose to $1,750, a 31.4 percent increase
![New York City was among the leaders in the national trend, where the median asking price was set at $4,209, a 23 percent spike from last year](https://i.dailymail.co.uk/1s/2022/08/11/05/61277631-11101185-image-a-7_1660192102476.jpg)
New York City was among the leaders in the national trend, where the median asking price was set at $4,209, a 23 percent spike from last year
![Average and median Manhattan rents are seen on a monthly basis since last June and it is not good news for New Yorkers](https://i.dailymail.co.uk/1s/2022/09/07/20/61277011-11186149-Average_and_median_Manhattan_rents_are_seen_on_a_monthly_basis_s-a-49_1662580242819.jpg)
Average and median Manhattan rents are seen on a monthly basis since last June and it is not good news for New Yorkers
Bank of America CEO Brian Moynihan said high rents are a concern because they can account for a big chunk of a household's take-home pay.
'Gas prices are coming back down, but rents are going up 10, 12, 15 percent, and rent can end up taking 40 percent of these households' income,' Moynihan said in a recent Associated Press interview.
While things are looking a bit better for renters than a few months ago, it's still a landlords' market, Mayer said.
If your lease is up, staying put and negotiating with your landlord might be a better option than trying to move, at least until the rental market slows down further, said Paula Munger, assistant vice president for industry research and analysis at the National Apartment Association.
'When you renew your lease, you´re definitely not paying the same as someone new moving in,' Munger said. 'If you can, stay in your apartment.'
A major reason for rent spikes has been increasing demand from people priced out of a booming housing market.
That market is starting to slow, which could mean more people can afford to buy and won't need to rent, but with interest rates rising, some may not want to take on mortgages.
'With inflation now all throughout the market, there´s not enough supply so the prices are going up,' Munger said. 'That´s the downside for people, just not having enough options and choices for what they would like in a housing unit.'
![National home prices increased 19.7 percent in May from a year ago, after surging 20.6 percent in April](https://i.dailymail.co.uk/1s/2022/09/07/20/60760895-11186149-National_home_prices_increased_19_7_percent_in_May_from_a_year_a-a-48_1662580242789.jpg)
National home prices increased 19.7 percent in May from a year ago, after surging 20.6 percent in April
![The struggle over rent and homeownership comes as inflation remains persistently high](https://i.dailymail.co.uk/1s/2022/09/07/16/62163587-11186149-image-a-31_1662562916398.jpg)
The struggle over rent and homeownership comes as inflation remains persistently high
That was the experience of Erika Tascon, a 22-year-old Los Angeles resident who was living with roommates but wanted to find an apartment with her boyfriend.
After visiting more than 10 units, the couple picked a 500-square-foot one-bedroom apartment in Beverly Hills where they pay $2,750 per month.
The median rent for a one-bedroom in the area is $2,773, up 14 percent from last year, according to data from Zumper.
'I think landlords are taking advantage of tenants right now,' said Tascon, who is paying $200 more per month than for her previous apartment.
In Britni Eseller's case, the high demand meant that she had to rush to fill out her application to beat the other 10 people who toured the apartment she wanted.
'Because everyone is in scarcity mode, you're willing to find a place that might be somewhat affordable and you're unfortunately okay with overlooking chipped floors or a broken appliance,' said Eseller, who lives in North Park, a neighborhood of San Diego.
Developers have ramped up construction of apartment buildings this year, which could eventually help to ease the crunch. But it's likely to take a while before that's reflected in the market.
Meanwhile, high rents are disproportionately hurting low-income residents across the country, said Ben Martin, research director of Texas Housers, a non-profit organization that works on housing justice.
In May, rental prices in Dallas and Fort Worth were up 21.6 percent from last year, according to Redfin data. In Austin they were up 48.4 percent.
One major reason is that high-income people from coastal areas like California and New York moved to Texas during the coronavirus pandemic, when they realized they could work remotely and live more cheaply.
In December of last year, for example, Tesla moved its headquarters from Silicon Valley to Austin.
'People who make the lowest incomes are paying more of their total pie of money,' Martin said. 'Which means that they don't have money for anything else: school supplies, groceries, gas, clothing, all of the essential stuff that you need to live.'
In addition to cutting basic expenses, renters are also cramming more people into apartments, Martin said.
Increasingly, people can't afford their homes at all and are now facing eviction. Governments have ended eviction moratoriums and rental assistance programs that allowed people to stay in their homes during the pandemic.
The Eviction Lab, a research organization at Princeton University, is seeing record numbers of evictions that have surpassed pre-pandemic levels.
In Houston, where the eviction moratorium ended in July 2021, there were 7,242 eviction filings in July of this year, 51 percent above average, according to The Eviction Lab.
Other cities such as Los Angeles have extended eviction moratoriums until the end of this year.
Tenants who can't afford rent increases but also can't afford to move are often forced to choose between paying rent and covering basic necessities. An eviction stays on a renter's record, making it harder to find housing in the future.
'The threat of eviction is the looming problem,' said Nick Graetz, a postdoctoral research associate at The Eviction Lab.
'Part of the reason renters sacrifice so many other things to try to pay unreasonable high rents every month is because of the constant threat of being evicted from their home.'
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