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September Rent Trends: A Subtle Decline in Major US Cities

In September, renters experienced a modest yet significant shift towards affordability as median rents across the 50 largest metropolitan areas in the United States decreased. According to a report from Realtor.com, the median rent fell to $1,743, marking a decline of $10 compared to August and $17 lower than the peak rent noted in August of the previous year, amidst the backdrop of persistent inflationary pressures.

This continuing trend of year-over-year decreases has now persisted for 14 consecutive months. While the decrease in rent amounts to only a few dollars compared to September 2023, it nevertheless offers renters a respite from the rising costs that have marked the real estate market in recent years. In terms of specific accommodations, studio apartments saw a drop of $34 in median rent, bringing it to $1,442. Meanwhile, one-bedroom and two-bedroom units also became more affordable, costing $1,623 and $1,930 respectively—each down by $8.

Despite the recent declines, overall renting costs remain significantly higher than pre-pandemic levels. Since 2019, the average rent has escalated by $286, nearly a 20% increase. However, researchers Jiayi Xu and Danielle Hale from Realtor.com noted that this trend mirrors the rise seen across most consumer goods and services, where overall prices have increased by 22.7% in the same timeframe. More stark is the nearly 50.8% surge in median price-per-square-foot for homes available for sale over the last five years.

Despite the overall decrease in rents, the pace of rent increases has varied markedly across different regions. Predominantly, eight of the ten markets reporting the most significant declines in rental prices are located in the South. Nashville leads this group with a notable 4.8% drop, followed by substantial reductions in Dallas and Denver, each down by 4% from the previous year.

As noted by Xu and Hale, factors contributing to softer rental markets in the South include a robust labor market characterized by low unemployment rates, particularly in cities like Austin and Birmingham, which saw lower rental prices due to an influx of new multifamily housing developments. These developments are effectively injecting more supply into the market and thereby exerting downward pressure on rental rates.

In contrast, several Midwest metro areas reported increases in rental prices compared to last year, with only Chicago and Detroit witnessing declines. Researchers attribute these rising rents to several factors, including more favorable initial pricing and stable labor conditions within these regions.

24 Cities with Affordable Rent Below the National Median

For those searching for affordable rental options, a review of Realtor.com’s findings highlights 24 major cities where rent is at least 10% lower than the national median of $1,743 as of September.

Here are those cities, their respective median rents, along with year-over-year and month-over-month changes, as well as the savings relative to the national average:

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