Rent Is Finally Getting Cheaper — Especially in These 9 Cities

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Although you probably shouldn’t be holding your breath for significantly more affordable rents in 2023, here’s a glimmer of good news: Some relief from unrelenting price increases is well underway.

It still costs renters 20% more to take out a new lease than it did three years ago, according to a report from the real estate listing site Redfin. But data shows rents continued cooling into December after many consecutive months of double-digit year-over-year increases, even in some of the hottest markets.

While that doesn’t mean renters should expect killer deals to surface in the new year, this month marked the smallest year-over-year increase in median asking rents (5%) since July 2021.

Economists at another listing site, Realtor.com, say that although they expect rental prices to continue climbing nationally, the trend of double-digit hikes is likely over. As of November, rentals in nine of the 50 largest cities in the U.S. have posted year-over-year declines, particularly in the Sun Belt, West and South.

December also brought about the seventh straight month of slowed rent growth, according to Redfin. Rents dropped 1.4% from November and 3.6% from their peak in August, when the national median asking rent was $2,053. Redfin’s latest rental market report puts the current U.S. median asking rent at $1,979.

These are the nine U.S. metros where rent prices are down compared to December 2021, according to Realtor.com.

  1. Riverside, California
    Median rent as of November: $2,071
    Year-over-year change: -5.5%

  2. Las Vegas, Nevada
    Median rent: $1,481
    Year-over-year rent change: -4.9%

  3. Sacramento, California
    Median rent: $1,838
    Year-over-year rent change: -4.8%

  4. New Orleans, Louisiana
    Median rent: $1,371
    Year-over-year rent change: -2.8%

  5. Phoenix, Arizona
    Median rent: $1,600
    Year-over-year rent change: -2%

  6. Atlanta, Georgia
    Median rent: $1,689
    Year-over-year rent change: -1.8%

  7. Tampa, Florida
    Median rent: $1,783
    Year-over-year rent change: -1.8%

  8. Jacksonville, Florida
    Median rent: $1,454
    Year-over-year rent change: -0.8%

  9. Austin, Texas
    Median rent: $1,656
    Year-over-year rent change: -0.6%

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