Rent prices declined in these 2 major US cities since last year

After a period of crushing growth rates during the pandemic, renters could start seeing better deals and more discounting over the next year and a half.

by Jeremy Tanner | Jul. 12, 2023

Story at a glance

Two large U.S. cities have actually seen the average rent price fall from this time last year.

According to Zillow’s June Rental Market Report, average asking rents rose 4.1% from this time last year.

But in Las Vegas and Austin, the typical rent dropped 1.8% to $1,804 and 0.8% to $1,941, respectively.

(NEXSTAR) – Soaring prices have dominated headlines over the past couple of years, but two large U.S. cities have actually seen the average rent price fall from this time last year.

According to Zillow’s June Rental Market Report, average asking rents rose 4.1% from this time last year, but in Las Vegas and Austin, the typical rent dropped 1.8% to $1,804 and 0.8% to $1,941, respectively.

The greatest year-over-year increases were predominantly in the Northeast and Midwest, with the greatest jump on the West Coast happening in San Diego, where typical rents are now around $3,175 after a 5.3% increase.

Here are the top 10 increases in rent from this time last year, according to Zillow:

City	Typical Rent	Year-over-year Increase
Boston, MA	$3,045	7.0%
Hartford, CT	$1,827	6.9%
Providence, RI	$2,021	6.9%
Cincinnati, OH	$1,518	6.8%
Chicago, IL	$2,050	6.3%
Kansas City, MO	$1,434	6.2%
Louisville, KY	$1,368	6.1%
St. Louis, MO	$1,371	6.0%
Buffalo, NY	$1,336	5.9%
Milwaukee, WI	$1,335	5.4%

(Zillow)

When it comes to the monthly increase numbers across the country, 0.6% is in line with pre-pandemic growth rates from 2015 to 2019. The “perfectly average” rate actually snaps a seven-month streak of declining rates in the wake of February 2022’s record of 16.2% growth, the report found.

Rental price growth is expected to keep falling this year, RealPage Senior Vice President and Chief Economist Jay Parsons says.

“While apartment demand is rebounding, rent growth continues to cool,” Parsons tweeted. “Why? Because the 50-year high in apartment construction is doing what it’s supposed to do — put downward pressure on rent growth.”

Some cities across the country have even been incentivizing developers to convert office buildings hollowed out by COVID-19 into livable spaces.

“We’re starting to see all of these units under construction be completed,” Parsons told Insider. “All of that new product is giving renters a lot more options — it’s also forcing property managers to compete with each other.” The dynamic has led to a “predestined down ramp” for inflation, he said.

After a period of crushing growth rates during the pandemic, renters could start seeing better deals and more discounting over the next year and a half, Parsons said.