Summary
National rents increased by 0.50 percent in June 2023, coming after a decrease of 0.6 percent in May, the first yearly drop since March 2020. This increase is almost twice as significant as April’s increase of just over 0.25 percent. Despite steady growth throughout the first half of 2023, prices remain below the peak of August 2022.
As of June, the national median rent price was $2,029, a 4.80 percent increase from February and the highest price since August 2022. Prices have risen by more than 15.5 percent nationally over two years, adding over $275 to monthly rent bills.
Regional Trends
Region-wise, the West experienced a year-over-year rent drop, with a decline of 0.31 percent in June. The South and the Northeast saw increases of 0.80 percent and 4.32 percent, respectively, while the Midwest recorded a 3.72 percent increase.
Among the states, South Dakota and Mississippi recorded the highest rent growth of more than 26 percent yearly. In contrast, Washington, Idaho, Arizona, and Nevada led the overall declines in the West.
Metropolitan Area Trends
Among the 50 most populous metropolitan areas, Kansas City, MO, saw the most significant yearly increase of 16 percent. In contrast, Cincinnati, OH-KY-IN, recorded the highest decrease at 15.20 percent.
Philadelphia, PA
In Philadelphia, the rent prices slightly increased by 0.11 percent every month to a median price of $2,437.
Industry Developments
Built-to-rent homes are gaining popularity, with Arizona leading this trend. Additionally, Texas state lawmakers have passed a law preventing homeowners associations from banning Section 8 households from neighborhoods.
