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Oct. 28, 2021, 6:00 a.m. EDT

Realtor.com® September Rental Report: Big Tech City Rents Are Back

National rents grew at a double-digit annual pace for the second straight month, while surging downtown rents suggest more typical pre-COVID rental activity could be on the horizon-- The U.S. median rental price increased 13.6% year-over-year, bringing monthly rents up $222 to a new high of $1,654 in September-- All unit sizes saw double-digit rent increases over 2020: Studios (+11.3%), one-bedrooms (+13.7%) and two-bedrooms (+14.4%)-- Rent growth surpassed pre-COVID levels in the 10 biggest tech metros like Austin (+25.3%) and Seattle (+16.7%), driven by skyrocketing rents in downtown counties

SANTA CLARA, Calif., Oct. 28, 2021 /PRNewswire/ -- From Broadway lights to bustling offices, big cities are back – and so are surging downtown rental prices. Following sharp declines during the pandemic, September data shows rents in the 10 biggest U.S. tech cities like Austin and New York surpassed March 2020 levels by an average of 6.3%, according to the Realtor.com [®] Monthly Rental Report released today. Nationally, rents grew at a double-digit annual pace (+13.6%) for the second month in a row.

"With rents continuing to surge to new highs nationwide, including in big tech hubs, September data confirms the U.S. rental market has moved past the recovery phase and is fully back in business. Rental demand remains unseasonably high, driven by still-limited housing supply, rising mortgage rates pushing buyers towards renting, and more people returning to big cities," said George Ratiu, Manager of Economic Research for Realtor.com [®] . "At the same time, it's important to put recent rental activity in the context of housing trends throughout the pandemic. Rents didn't rebound from COVID declines as quickly as for-sale home prices, but rental activity has now reached a level not unlike the homebuying frenzy seen earlier this year, before fall seasonality kicked in. The good news is that if rents continue to parallel home listing prices, rental price growth could potentially begin cooling this winter."

Rents surge in major urban tech hubs following steep pandemic declines

While big city rents dropped or stalled during the pandemic as people fled to less expensive and crowded areas, large urban rental markets began to rebound in April 2021 with the rollout of vaccines. However, rent growth in these major metros has found its stride over the past two months, with September data showing big city rents have not only recovered but are making up for lost time. In most counties at the heart of the nation's 10 biggest tech cities, the September rental growth rate was higher than in March 2020, before the onset of COVID.

  • The average rent across the 10 biggest U.S. tech cities grew by 9.9% year-over-year in September and was 6.3% higher than in March 2020. For comparison, average big tech metro rents declined by as much as 7.2% at the height of the pandemic.

"The days of rental deals in metros like San Francisco and Manhattan may be over, but there is a silver lining for renters with more flexible timelines. Big city rental competition and high prices is a sign of normalcy, which could precede more seasonal norms like winter cooling in rent growth in parts of the U.S.," Raitu added. "For renters on tighter schedules, compromises will be key to staying on budget and not getting swept up in bidding wars. If location and size are your must-haves, consider deprioritizing extra amenities or upgrades. You can use tools like the Realtor.com [®] Rentals app to set up searches and alerts for rentals that match your top criteria."

Rental prices quicken their double digit pace

For the second consecutive month, national rents grew at a double-digit pace over last year and at a higher rate than in August. September's rent growth was faster than in a typical year, but month-over-month has been getting smaller since the summer. This suggests a return to seasonality may be on the horizon for this coming December or January.

  • In September, the U.S. median rental price reached a new high of $1,654, up 13.6% year-over-year.

  • September's national rent increase over 2020 was higher than in August (+11.5%), but month-over-month increases have been moderating from the feverish pace seen over the summer, up 3.2% from May to June.

  • Nationally, all unit sizes tracked by Realtor.com [®] saw double-digit rent growth and reached new rental price highs in September. COVID demand for more space continues to drive the highest price growth among larger units, led by two-bedrooms at a yearly increase of 14.4% to $1,855.

  • Rents grew by double-digits in more than half (31) of the 50 largest U.S. markets in September, led by secondary metros like Tampa (+33.3%).

Realtor.com® September 2021 Rental Data - 10 Biggest U.S. Tech Hubs
Metro Pre-COVIDRent (Mar2020) COVIDLowMonth COVIDLow Rent COVID Lowvs. March2020 Sept. 2021Rent Sept. 2021Rent YoY Sept 2021vs. COVIDLow Sept. 2021vs. March2020
Austin, Texas $1,367 Oct-20 $1,300 -4.9% $1,647 25.3% 26.7% 20.5%
Boston, Mass. $1,680 Dec-20 $1,600 -4.8% $1,895 3.4% 18.4% 12.8%
Chicago, Ill. $2,300 Apr-21 $2,350 2.2% $2,500 2.7% 6.4% 8.7%
Denver, Colo. $2,635 Feb-21 $2,488 -5.6% $2,850 15.5% 14.5% 8.2%
Los Angeles, Calif. $1,938 Dec-20 $1,700 -12.3% $2,095 13.8% 23.2% 8.1%
New York, N.Y. $1,976 Dec-20 $1,836 -7.1% $2,075 -3.8% 13.0% 5.0%
San Francisco, Calif. $1,650 Dec-20 $1,593 -3.5% $1,695 5.5% 6.4% 2.7%
San Jose, Calif. $2,480 Jan-21 $2,242 -9.6% $2,517 10.8% 12.3% 1.5%
Seattle, Wash. $2,923 Jan-21 $2,610 -10.7% $2,895 16.7% 10.9% -1.0%
Washington, D.C. $3,127 Dec-20 $2,645 -15.4% $3,015 9.2% 14.0% -3.6%

Realtor.com® September 2021 Rental Data - 50 Largest Metropolitan Areas
Metro OverallRent OverallRent YY StudioRent StudioRentYoY 1brRent 1br RentYY 2brRent 2br RentYY
Atlanta-Sandy Springs-Roswell, Ga. $1,720 22.3% $1,591 16.9% $1,618 23.1% $1,878 22.3%
Austin-Round Rock, Texas $1,647 25.3% $1,315 21.2% $1,523 26.7% $1,835 26.1%
Baltimore-Columbia-Towson, Md. $1,701 11.0% $1,495 19.7% $1,615 10.6% $1,809 9.6%
Birmingham-Hoover, Ala. $1,115 14.4% $1,056 12.9% $1,070 12.8% $1,175 18.1%
Boston-Cambridge-Newton, Mass.-N.H. $2,517 3.4% $2,195 6.6% $2,400 5.5% $2,775 0.9%
Buffalo-Cheektowaga-Niagara Falls, N.Y. $1,213 13.9% $795 0.6% $1,075 8.0% $1,390 18.8%
Charlotte-Concord-Gastonia, N.C.-S.C. $1,543 20.5% $1,402 22.4% $1,420 19.1% $1,685 18.4%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis. $1,695 2.7% $1,150 -14.8% $1,650 3.1% $1,950 2.6%
Cincinnati, Ohio-Ky.-Ind. $1,200 12.7% $1,077 12.8% $1,143 11.5% $1,275 8.5%
Cleveland-Elyria, Ohio $1,140 8.6% $800 4.0% $1,081 8.5% $1,235 10.3%
Columbus, Ohio $1,185 12.5% $999 13.7% $1,118 13.5% $1,282 12.3%
Dallas-Fort Worth-Arlington, Texas $1,475 18.2% $1,269 20.9% $1,357 20.6% $1,765 22.6%
Denver-Aurora-Lakewood, Colo. $1,895 15.5% $1,590 16.0% $1,771 17.1% $2,184 16.3%
Detroit-Warren-Dearborn, Mich. $1,225 7.6% $995 11.2% $1,060 8.9% $1,375 7.0%
Hartford-West Hartford-East Hartford, Conn. $1,550 7.6% $1,220 6.1% $1,445 4.4% $1,750 9.4%
Houston-The Woodlands-Sugar Land, Texas $1,319 9.9% $1,275 13.7% $1,209 11.1% $1,485 9.6%
Indianapolis-Carmel-Anderson, IN $1,168 13.4% $1,005 9.2% $1,084 12.8% $1,309 18.6%
Jacksonville, Fla. $1,446 23.7% $1,130 38.1% $1,359 28.3% $1,595 28.0%
Kansas City, Mo.-Kan. $1,150 7.3% $920 2.8% $1,043 6.0% $1,350 8.0%
Las Vegas-Henderson-Paradise, Nev. $1,548 25.9% $925 15.6% $1,422 27.0% $1,695 27.0%
Los Angeles-Long Beach-Anaheim, Calif. $2,850 13.8% $2,122 10.5% $2,600 14.0% $3,395 13.9%
Louisville/Jefferson County, Ky.-Ind. $1,035 8.9% $890 2.9% $980 5.4% $1,164 17.3%
Memphis, Tenn.-Miss.-Ark. $1,217 22.9% $1,100 9.5% $1,195 24.5% $1,275 25.4%
Miami-Fort Lauderdale-West Palm Beach, Fla. $2,500 31.6% $1,972 27.2% $2,200 29.4% $2,894 28.6%
Milwaukee-Waukesha-West Allis, Wis. $1,417 6.1% $1,100 2.8% $1,315 4.0% $1,660 10.7%
Minneapolis-St. Paul-Bloomington, Minn.-Wis. $1,510 4.1% $1,200 0.4% $1,436 4.4% $1,835 7.9%
Nashville-Davidson-Murfreesboro-Franklin, Tenn. $1,576 20.1% $1,555 13.5% $1,517 22.0% $1,620 17.5%
New Orleans-Metairie, La. $1,350 0.0% $975 -2.5% $1,300 0.1% $1,550 4.0%
New York-Newark-Jersey City, N.Y.-N.J.-Pa. $2,500 -3.8% $2,250 -2.1% $2,300 -8.0% $2,840 -2.1%
Oklahoma City, Okla. $850 6.4% $700 0.4% $760 7.0% $899 4.5%
Orlando-Kissimmee-Sanford, Fla. $1,655 24.5% $1,450 23.9% $1,550 26.0% $1,855 30.5%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del-Md. $1,649 3.4% $1,275 0.8% $1,580 3.3% $1,850 3.9%
Phoenix-Mesa-Scottsdale, Ariz. $1,700 26.4% $1,284 32.5% $1,530 28.0% $1,899 26.6%
Pittsburgh, Pa. $1,415 11.6% $1,220 15.6% $1,376 13.7% $1,560 13.5%
Portland-Vancouver-Hillsboro, Ore.-Wash. $1,710 14.1% $1,395 7.4% $1,656 13.4% $1,930 17.0%
Providence-Warwick, R.I.-Mass. $1,795 8.8% $1,410 -7.5% $1,600 4.2% $1,990 13.2%
Raleigh, N.C. $1,500 22.4% $1,376 22.5% $1,390 23.7% $1,660 23.9%
Richmond, Va. $1,299 15.8% $1,085 13.0% $1,173 15.0% $1,454 15.8%
Riverside-San Bernardino-Ontario, Calif. $2,245 26.5% $1,365 10.5% $1,905 23.7% $2,550 31.8%
Rochester, N.Y. $1,200 4.3% $875 4.0% $1,100 4.1% $1,325 5.6%
Sacramento-Roseville-Arden-Arcade, Calif. $1,920 20.4% $1,708 16.8% $1,800 21.6% $2,045 20.4%
San Antonio-New Braunfels, Texas $1,206 13.9% $1,039 12.4% $1,130 17.8% $1,390 16.9%
San Diego-Carlsbad, Calif. $2,745 25.1% $2,129 16.3% $2,539 27.9% $3,080 23.4%
San Francisco-Oakland-Hayward, Calif. $2,895 5.5% $2,395 7.0% $2,700 5.5% $3,370 3.1%
San Jose-Sunnyvale-Santa Clara, Calif. $3,015 10.8% $2,431 19.8% $2,789 12.6% $3,395 9.6%
Seattle-Tacoma-Bellevue, Wash. $2,095 16.7% $1,675 12.8% $2,097 18.1% $2,375 13.0%
St. Louis, Mo.-Ill. $1,150 6.0% $934 4.9% $1,115 9.2% $1,225 6.1%
Tampa-St. Petersburg-Clearwater, Fla. $1,800 33.3% $1,612 37.4% $1,673 39.4% $2,000 34.2%
Virginia Beach-Norfolk-Newport News, Va.-N.C. $1,365 14.2% $1,145 7.0% $1,324 13.5% $1,455 16.4%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V. $2,075 9.2% $1,680 4.9% $1,991 8.5% $2,400 9.3%

Methodology

Rental data as of September 2021 for units advertised as for-rent on Realtor.com [®] . Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas.

About Realtor.com [®]

Realtor.com [®] makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com [®] pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com [®] pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com [®] is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com [®] is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS [®] . For more information, visit Realtor.com [®] .

Media Contact rachel.conner@move.com

 

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View original content: https://www.prnewswire.com/news-releases/realtorcom-september-rental-report-big-tech-city-rents-are-back-301410707.html

SOURCE Realtor.com

COMTEX_395933532/2454/2021-10-28T06:00:16

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