Higher rent prices become 'new normal': expert
The national median rent price was $90 less in December 2021 than it was today
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Although data shows rent growth is slowing, prices are still well above where they were a year ago, according to Redfin-owned Rent.
On top of that, Rent researcher Jon Leckie told FOX Business these higher figures are "the new normal."
According to Rent's latest report, year-over-year growth in December increased by 4.77%, the lowest yearly change since 2021. It also marks the fourth consecutive month of single digit increases, the data showed. For eleven months, from October 2021 through September 2022, yearly growth had sustained double-digit increases.
The decline in the yearly growth rate is attributed to a combination of factors including increased vacancy rates, new inventory, a cooling housing market, and seasonal demand below normal levels, according to Leckie.
For comparison, annual rent growth last December was up 14.56%. However, the national median rent price was still $90 less than they are today.
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'For Rent' sign in front of a building on Dec. 06, 2022 in Miami Beach, Fla. (Joe Raedle/Getty Images / Getty Images)
"If you look at sort of where we were and where we are now, rents are still up significantly," Leckie said.
In December, the national median price hovered around $1,978, up from $1,889 last December. It's up significantly from the $1,649 reported two years ago, underscoring how the pandemic changed prices.
That's almost a $330 difference, or a nearly 20% increase, over the past two years, Leckie said.
Although the growth rate has slowed, it will be on top of a higher overall figure.
"That’s why I say we’ve reached a new normal in which prices are elevated to a new floor from which to grow," he added.
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Rent sign is displayed outside a house in the area of St Clair Ave. E. and Mt. Pleasant Rd. in Toronto. (Lance McMillan/Toronto Star via Getty Images / Getty Images)
GOLDMAN SACHS SAYS 4 US CITIES WILL SUFFER A 2008 CRASH IN HOME VALUES
These are the ten states that saw annual decreases in rent in December, according to the Rent data
- Idaho -5.4%
- Nevada -2.7%
- Arizona -2.5%
- Oregon -2.4%
- Virginia -1.2%
- Maryland -1.1%
- Pennsylvania -0.7%
- Georgia -0.6%
- Minnesota -0.3%
- Washington -0.1%
These are the ten states that saw annual increases in rent in December, according to Rent data
- Florida 23.9%
- New York 20.1%
- South Dakota 17.9%
- Arkansas 17.5%
- Delaware 14.5%
- Tennessee 14.2%
- Mississippi 13.2%
- Nebraska 12.6%
- North Carolina 12.2%
- Utah 12.1%
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