Rents are on the rise once again. After eight months of slowdowns, rent growth in the largest metros saw an increase in March, rising 1.1% year over year, according to realtor.com®’s Monthly Rental report released on Tuesday.
The median rent nationwide for the 50 largest metros averaged $1,463 in March. Over the last eight months, rent growth decreased from 2.2% in July 2020 to just 0.6% in February.
"Although we're still below the 3.2% growth we were seeing before COVID, average rent growth in the nation's largest housing markets saw its first uptick since July 2020, and rents are poised to rise at a quickening pace as recovery continues,” said Danielle Hale, realtor.com®’s chief economist. “However, rents are not rising in all markets. The tech markets and several big metros like Chicago and Los Angeles continue to see rent declines, but generally at a slower pace than in recent months, which could signal a turnaround in the coming months."
Indeed, rental markets in high-priced tech hubs—like San Jose, San Francisco, and Seattle—continue to see a decline. Rents in Silicon Valley, for example, are down 14% compared to a year ago, according to realtor.com®’s data.
Across the country, rents could push higher over the coming months, Hale notes. As home prices reach record highs and interest rates climb, Americans may show an increasing desire for rentals as would-be home buyers decide to hold off on purchasing a home, Hale said.