The latest data from the U.S. Census Bureau reveals that more than 36% of households are renters. Since the onset of the pandemic, renting has hit record highs, with an overall increase of 29.4%, according to Zillow. Single-family homes saw an even greater surge at 35.7%. Multifamily homes experienced a 23.3% rise, but growth rates have been slowing since the peak of 16.2% in February 2022. As of the November rental report released on December 7, the average asking rent in the U.S. is now $1,982, marking a 3.3% increase from the previous year. Stay informed!
Direction of U.S. Rent: Rising or Falling?
In November, asking rents in the USA dipped by 0.2%, signaling a stabilization in the rental market. This is a slight decrease from the 0.1% growth observed from August to September. Zillow notes that before the pandemic, rent growth during this time of year remained relatively steady. Despite peaking in February 2022, overall rent prices are still below pre-pandemic levels. The recent decline is attributed to a surge in newly constructed multifamily properties entering the market, with over three in ten rental listings offering concessions, as per Zillow.
For single-family houses, the yearly rent increase is higher than that for multifamily rents. In November, the average rent for a single-family house was $2,148, a 0.1% decrease from October. Meanwhile, multifamily dwellings averaged $1,845 in November, marking a 0.3% decrease from October. Zillow suggests that high financing costs may slow down the expansion of new multifamily developments in the future. Despite this, renting is currently deemed more affordable than buying, driving up demand for rental properties. Stay tuned for updates!
Yearly Rent Hikes Across U.S. Cities
Here’s the latest ups and downs from Zillow’s analysis of housing data in 50 cities.
For all types of rental housing:
- Providence, R.I.: +7.3%
- Hartford, Conn.: +7.2%
- Cincinnati: +6.4%
- Columbus, Ohio : +5.8%
- St. Louis: +5.7%
For Single-family rentals:
- Providence, R.I.: +9.4%
- Hartford, Conn.: +9.2%
- Cincinnati: +8.3%
- Milwaukee: +7.2%
- Chicago: +6.8%
For Multifamily rentals:
- Providence, R.I.: +6.9%
- Hartford, Conn.: +6.5%
- Boston: +5.6%
- Columbus, Ohio: +5.6%
- Cincinnati: +5.5%
Anticipated Rent Decline in Select U.S. Cities in 2024