Rental markets that have seen prices fall in 2023
There are only a handful of rental markets that have seen rental prices fall in 2023 as housing costs have driven inflation this year. Here is the full list
Of the more than four hundred rental markets tracked by Zillow, only fourteen saw rental prices for single-family homes fall between January and November. Many of these metro areas are small and home to populations under 100,000. In other words, they may not be the most attractive options for those looking for a more urban option.
Rental markets where prices have fallen
- Terre Haute, IN: -2.2%
- Monroe, LA: -2.0%
- Tyler, TX: -1.8%
- Fairbanks, AK: -1.8%
- Sierra Vista, AZ: -1.6%
- Hattiesburg, MS: -1.4%
- Hinesville, GA: -1.3%
- Lake Havasu City, AZ: -0.9%
- Ellensburg, WA: -0.9%
- Heber, UT: -0.9%
- Santa Cruz, CA: -0.9%
- St. Marys, GA: -0.7%
- Hickory, NC: -0.3%
- Salisbury, MD: -0.2%
One of the cities that made it to the list is Santa Cruz, California, which is situated near the beach. Although the rental prices have fallen slightly from $4,050 to $4,014 since the beginning of the year, it does not necessarily mean that the cost of a lease has become affordable.
Moreover, even though there were some markets where prices fell, the decrease was not significant. This highlights the immense pressure the housing sector has put on households across the country, driving up the costs. As mortgage rates increased, the supply of houses on the market began to fall, driving up prices.
Average interest rates for fixed-rate mortgages decline in the week ended Dec. 21: the 30-year to 6.67%, and the 15-year to 5.95% https://t.co/ABO9IEd8ms pic.twitter.com/eqH6yyvyM1
— St. Louis Fed (@stlouisfed) December 22, 2023
Especially for renters, who are at the mercy of landlords, their purchasing power can decrease rapidly if they have to sign a new lease at a substantially higher level than what was offered previously.
Cities where rents have increased slightly
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When looking at cities where rents have increased less than one percent, a few major cities and popular vacation destinations make the list; Austin, Texas, has seen rental prices rise 0.1 percent for an average of $2,357 for a single-family home in November. Other urban areas that have only seen a slight increase include Atlanta, Georgia, Memphis, Tennesse, and Spokane, Washington, where the average lease cost rose 0.9 percent. Truckee, California, a popular destination for skiers, saw leases increase 0.24 percent.
Where have rents increased the most?
On the other end of the spectrum, Zillow tracked the greatest increase in rental prices in Green Bay, Wisconsin (12.3 percent), Santa Fe, New Mexico (12 percent), Trenton, New Jersey (11 percent), Logan, Utah (10.1 percent), and Yuma, Arizona (8.7 percent). The average seen across the country was 3.72 percent.