Rent prices rose yet again in August, notching a late-summer increase of 0.71 percent over July’s price, but failed to break the record high for prices set this time last year.
August’s monthly increase was an acceleration compared to July’s 0.41 percent gain. Since February 2023, when seasonal trends began putting upward pressure on rents, monthly price changes have averaged 0.97 percent. August’s increase was the third time over that span that monthly changes have come in below 1 percent, including a -0.24 percent dip in prices from March to April, and brings total rent growth since that winter low to nearly 6 percent.
Year-over-year changes came in slightly negative as price level increases fell short of last year’s record high. In August 2022, prices reached $2,054 on the backs of near-constant growth beginning in February 2021, which increased rents by more than 25 percent over that time. That period included 11 months of double-digit rent growth that began in October 2021 and ended in August 2022 when yearly changes were above 12 percent. The modest -0.06 percent decline this August brings rent levels to within $2 of last year’s high while being only the second time since March 2020 that yearly prices have declined.
The median national price now sits at $2,052.
Price levels began to decline after its August 2022 peak. The median rental price dropped 5.65 percent from that summer’s high to the most recent low in February 2023 when prices reached $1,937. Prices have increased since then, although at rates lower than historical norms. Broad trends across the industry including an influx of new inventory and demand below seasonal expectations have worked together to slow the pace of rent growth.
But longer-term views show that prices continue to be elevated well above pre-pandemic levels. Over two years, rents have grown by more than 12 percent, and over three years by more than 18.5 percent. Annualized growth over each of those periods is more than 6 percent, well above historical norms. Over the course of the pandemic, prices have risen by more than 25 percent, adding over $400 to monthly rent bills since 2019.
Let’s look at where rent prices stand today.
National rent price trends
National prices in August continued their upward trend that began last February. From July to August, rents rose 0.71 percent, bringing the national median price to $2,052.
Monthly growth accelerated in August, up from July’s 0.31 percent increase, but remained below the 0.97 percent average monthly increase registered since February when prices bottomed out at $1,937. Prices have now grown 6 percent since February’s low, adding $115 to monthly rent bills.
August's slight yearly decline offered little relief, as prices are now only $2 off from the record set this time last year when prices reached $2,054. The current price is now the second highest price recorded by Rent., besting the previous second highest price set in July of this year by more than $14 and the previous third highest price set in July 2022 by $20.
Although prices remain near historic highs, yearly changes have greatly decelerated. August 2022 registered a yearly increase of more than 12 percent. While high, that change was still well below the historical peak reached in March 2022 when prices rose 17.71 percent year over year. Over the 11-month period from October 2021 to August 2022 that saw consistent double-digit rent growth, yearly increases averaged 14.7 percent.
Regionally, the Midwest saw the highest yearly increases in August, continuing a general trend that began in early 2023. While Midwest growth lingers, its rents remain the most affordable in the nation. With a median price of $1,434, the Midwest comes in a full $230 dollars less than the South and more than $1,000 less than the Northeast and West. Much of the price differential can be attributed to the Midwest's lack of extreme growth through much of 2021 and 2022. While all other regions were experiencing double-digit growth, yearly rent increases in the Midwest remained largely between 2 and 6 percent. But as yearly changes in the South, Northeast, and West have declined over the last year, changes in the Midwest have remained steady hovering between 4 and 6 percent over that time.
This month, the South joined the West, which has registered negative yearly rent growth each month since January 2023, as the only other region with yearly declines. The drop in the South was modest at only -0.30 percent, while the West declined -1.11 percent year over year. Yearly changes in the Northeast remained positive at 1.20 percent, a significant drop from the region's nearly 5 percent growth in July 2023.
State rent price trends
At the state level, the split between markets that saw yearly increases and markets with yearly decreases remained largely unchanged from July. This month, 67.44 of state markets in this study saw yearly increases compared to 66.67 of markets in July. August saw 32.56 percent of markets decline in price year over year, compared to 33.33 percent last month.
Of the 10 largest yearly gainers, the Midwest was overrepresented. Eight states were from this region, including Iowa, North Dakota and South Dakota, which all experienced yearly increases above 10 percent. Kansas saw the next highest yearly growth rate in the Midwest at 9.27 percent. Meanwhile, Wisconsin, Minnesota, Indiana and Michigan all saw rents grow by 7.80 percent year over year.
Despite the large increases in rent in the Midwest, the average rent among these states is just $1,306, nearly $750 less than the national median.
Mississippi saw the largest yearly increase among states in this study and 19.30 percent, down from nearly 22.50 percent growth in July, to $1,174. In New Hampshire, rents grew by 12 percent year over year to its current median price of $1,984.
The following states have experienced the greatest increase in rent prices year over year:
- Mississippi (19.30 percent)
- Iowa (14.13 percent)
- North Dakota (12.00 percent)
- South Dakota (11.65 percent)
- Kansas (9.27 percent)
- New Hampshire (8.94 percent)
- Wisconsin (8.74 percent)
- Minnesota (8.33 percent)
- Indiana (7.86 percent)
- Michigan (7.81 percent)
Representing regional trends, states from the South and West dominate the list of the 10 largest decliners. Only Pennsylvania, which declined -5.29 percent year over year to a median price of $1,667, comes from outside these two regions.
Montana led declines in the West and among all states in this study with yearly prices dropping more than -20 percent. Washington remains the most expensive state on this list — with a median rent of $2,335 — despite a yearly decline of -9.81 percent, the second highest on this list. Oregon saw the third-largest decline among all states in this study with declines of -9.02 percent year over year.
In the Mountain West, rent growth continued to cool. Nevada declined by more than 6 percent year over year, while Utah and Idaho saw declines on either side of 4 percent. While in the South, Oklahoma, Florida and Virginia rents also declined between 4 and 6 percent.
In total, 14 states saw yearly declines with an average of -5.79 percent.
The following states have experienced the greatest decrease in rent prices year over year:
- Montana (-20.61 percent)
- Washington (-9.81 percent)
- Oregon (-9.02 percent)
- Nevada (-6.11 percent)
- Oklahoma (-5.68 percent)
- Pennsylvania (-5.29 percent)
- Florida (-4.15 percent)
- Utah (-4.14 percent)
- Virginia (-3.99 percent)
- Idaho (-3.95 percent)
Metro rent price trends
Like state and regional trends, the Midwest claimed a plurality of the largest gainers among the 50 largest U.S. metros by population.
The Kansas City metro was one of two metropolitan areas that saw a yearly increase above 14 percent. Columbus, OH, and Minneapolis-St. Paul saw yearly rent growth above 9 percent, while rents in the Milwaukee, WI, metro increased by 8.28 percent to a median price of $1,725.
Oklahoma City saw the largest yearly increase among metros with 14.79 percent growth to a median price of $1,426. It was joined by regional neighbors including Memphis, with a yearly growth of 9.81 percent, Jacksonville, FL at 8.09 percent growth, Birmingham, AL, which grew by 7.65 percent.
The following metro areas have experienced the greatest increase in rent prices year over year:
- Oklahoma City, OK (14.79 percent)
- Kansas City, MO-KS (14.21 percent)
- Memphis, TN-MS-AR (9.81 percent)
- Columbus, OH (9.33 percent)
- Minneapolis-St. Paul-Bloomington, MN-WI (9.24 percent)
- Milwaukee-Waukesha, WI (8.28 percent)
- Providence-Warwick, RI-MA (8.15 percent)
- Buffalo-Cheektowaga, NY (8.11 percent)
- Jacksonville, FL (8.09 percent)
- Birmingham-Hoover, AL (7.65 percent)
The largest decliners were led by the West's Portland, OR, and Las Vegas, which declined -13.41 and -11.90 percent, respectively. The San Francisco metro also made the list of largest decliners, with prices dropping by -3.38 year over year, yet the median rent there remains well above the national median at $3,784. In the Mountain West, prices in the Salt Lake City metro dropped by 5.27 percent.
Metros in the South, including New Orleans and Austin, saw yearly rent declines of nearly 9 and 8 percent respectively. Louisville, KY, and Raleigh, NC, each declined by close to 4 percent. The Midwest's Cincinnati and the Northeast's Pittsburgh also made the list of largest decliners with yearly price declines of -6.19 and -4.46 percent respectively.
The following metro areas have experienced the greatest decreases in rent prices year over year:
- Portland-Vancouver-Hillsboro, OR-WA (-13.41 percent)
- Las Vegas-Henderson-Paradise, NV (-11.90 percent)
- New Orleans-Metairie, LA (-8.97 percent)
- Austin-Round Rock-Georgetown, TX (-7.85 percent)
- Cincinnati, OH-KY-IN (-6.19 percent)
- Salt Lake City, UT (-5.27 percent)
- Louisville/Jefferson County, KY-IN (-4.68 percent)
- Pittsburgh, PA (-4.46 percent)
- Raleigh-Cary, NC (-4.26 percent)
- San Francisco-Oakland-Berkeley, CA (-3.38 percent)
About this report
Our September 2023 Rent Report highlights year-over-year rent trends and price fluctuations that renters may experience in various parts of the United States. We compare rent prices across bedroom types to determine which of the country's most populated metros are becoming more affordable or more expensive for renters. States and metros with insufficient inventory are excluded from this report.
Methodology
We analyzed rental property prices in August 2023, the last full month of data, from Rent.'s available inventory to identify our median rent prices at the national, state and metro levels. Our analysis combines inventory and bedroom types into one simple median that covers all available rental units at the time.
The top 50 metropolitan areas in our analysis are determined by U.S. Census Bureau population estimates for 2021.
More detailed information about our methodology can be found here.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment. The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
