These major US cities are seeing surprising declines in rent prices. Is yours one of them?
It comes as no surprise that rent continues to be on the rise across America as the housing market remains red-hot.
But some of the nation's biggest cities are actually seeing rent prices fall, according to a new report from Rent.com.
While growing metro areas such as Toledo, Ohio; Durham, North Carolina; Huntsville, Alabama; and Lincoln, Nebraska, might seem likely, some major cities including Atlanta, Philadelphia and Kansas City, Missouri, are seeing up to double-digit declines.
"Rents in most places across the country are still increasing, but there are certain areas that are bucking the trend," said Brian Carberry, senior managing editor for Rent.com. "Most of these areas are in the middle of the country and cities that may have seen a rent increase a year ago and now have flattened out."
The latest report comes as the average price of rent for a one-bedroom apartment nationwide has jumped by 22% and the rent for a two-bedroom apartment has climbed by 18% in the last year, Rent.com says.
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Also, the demand is so steep that the United States' overall rental vacancy rate dropped to just 5.8% – the lowest since the mid-1980s, according to a new report by the Harvard Joint Center for Housing Studies. Renting has become a primary option even for high-income earners due to the competitive housing sales market.
As tough as it might be to get an apartment, there are cities where the rent prices are dropping, Rent.com said. For example, Toledo has seen a 23% decrease year-over-year for one-bedroom apartments.
Renters can expect to pay "approximately $656 and $936 for a one- and two-bedroom apartment, respectively," the site said.
Meanwhile, the rent for a one-bedroom apartment in Huntsville declined more than 18% and a two-bedroom 5%. Rent.com said that in the city that's known as "Rocket City," the home of three major space hubs, renters pay an average of $773 for a one-bedroom apartment and $1,151 for a two-bedroom.
Then there's Lincoln, home of the University of Nebraska, which saw an 11.5% rent price decrease for a one-bedroom apartment and an 18% decline for a two-bedroom, citing Lincoln's low cost of living and "perfect blend of big-city entertainment with rural charm."
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"People can expect to pay around $1,080 for a two-bedroom apartment and $988 for a one-bedroom apartment," Rent.com said.
Speaking of a big drop for two-bedroom apartments, Philadelphia renters saw an eyebrow-raising 22% decrease in 2021. Meanwhile, the rent price for a one-bedroom fell nearly 8%, startling for an East Coast city.
Carberry said cities with vibrant downtowns like Philadelphia are maybe "staying flat or decreasing" while their surrounding areas, including suburbs, are getting a bit pricier.
He cites Atlanta as an example. That city has seen a 7% decrease for a one-bedroom and 3% for a two-bedroom apartment (and pay around $1,600 for a one-bedroom and $2,216 for a two-bedroom), due to more inventory in the market.
Meanwhile, Atlanta's surrounding suburbs, like Sandy Springs, are seeing increases.
"Suburban areas are taking some of the demand away," Carberry said. "Of course, it's not indicative of the overall market."
Interestingly enough, Kansas City has seen nearly a 12% decline for a one-bedroom apartment and nearly 9% for a two-bedroom, Rent.com said. The site said the renter price is $1,240 and $1,521 for a one- or two-bedroom apartment, respectively.
Carberry said the decreases, in general, have more to do with supply and demand issues around these areas instead of thinking "these cities aren’t desirable places" to live.