Rental Market Chaos: Understanding the Current State of Rents.

According to a report by Zillow, the rental market showed signs of stabilization in November. The asking rent price decreased by 0.2% from October to November, which is lower than the previous month-to-month increase of 0.1% from August to September. Before the pandemic, there was typically little change in rent growth at this time of year.

The report shows that the overall rent price increases have slowed since their peak in February 2022 and remain lower than pre-pandemic rates. Year-over-year rent growth varied between 4.0% and 4.2% throughout 2019.

Zillow attributes the recent slowdown to an increase in new multifamily construction coming to market. Due to an influx of new buildings, renters see more than 3 in 10 rental listings offering concessions.

The annual pace of rent growth is more robust for single-family homes than multifamily rents. Looking at the monthly changes, the typical rent for a single-family home in November was $2,148 — a 0.1% decline from October. Multifamily homes, meanwhile, averaged $1,845 in November — a 0.3% decline from October. 

Zillow predicts that high loan costs will delay or prevent new multifamily construction growth moving forward. Right now, it is more affordable to rent than buy, which increases demand for rental housing.

Zillow's analysis of housing data in 50 cities shows that Providence, R.I., Hartford, Conn., Cincinnati, Columbus, Ohio, and St. Louis are among the cities with the top five highest annual rent increases across all types of rental housing. Meanwhile, Raleigh, N.C., San Francisco, San Diego, San Jose, Calif., and the New York City metro area are among the cities with the top five rent price declines monthly.

Single-family rentals in Providence, R.I., Hartford, Conn., Cincinnati, Milwaukee, and Chicago have seen the highest annual rent increases. Multifamily rentals in Providence, R.I., Hartford, Conn., Boston, Columbus, Ohio, and Cincinnati have also seen significant increases in annual rent prices. Meanwhile, Raleigh, N.C., San Diego, San Jose, Orlando, Fla., and Charlotte, N.C., have seen the highest declines in rent prices for multifamily rentals. According to a report by Zillow, the rental market stabilized in November, with the asking rent prices

decreasing by 0.2% from October to November. This is lower than the previous month-to-month increase of 0.1% from August to September. Before the pandemic, there was little rent growth change during this time of year.

Overall, rent price increases have slowed since their February 2022 peak and remain lower than pre-pandemic rates. Year-over-year rent growth ranged between 4.0% and 4.2% throughout 2019.

Zillow attributes the slowdown in recent months to an increase in new multifamily construction coming to market. Due to an influx of new buildings, renters see more than 3 in 10 rental listings offering concessions.

According to Zillow, the annual pace of rent growth is more robust for single-family homes than multifamily rents. Looking at the monthly changes, the typical rent for a single-family home in November was $2,148 — a 0.1% decline from October. Multifamily homes, meanwhile, averaged $1,845 in November — a 0.3% decline from October.

However, high loan costs will likely delay or prevent new multifamily construction growth. Right now, it's more affordable to rent than buy, which increases demand for rental housing.

Zillow's analysis of housing data in 50 cities reveals the following increases and declines:

Cities with the top five highest annual rent increases:

Among all types of rental housing:

- Providence, R.I.: +7.3%

- Hartford, Conn.: +7.2%

- Cincinnati: +6.4%

- Columbus, Ohio: +5.8%

- St. Louis: +5.7%

Single-family rentals:

- Providence, R.I.: +9.4%

- Hartford, Conn.: +9.2%

- Cincinnati: +8.3%

- Milwaukee: +7.2%

- Chicago: +6.8%

Multifamily rentals:

- Providence, R.I.: +6.9%

- Hartford, Conn.: +6.5%

- Boston: +5.6%

- Columbus, Ohio: +5.6%

- Cincinnati: +5.5%

Cities with the top five rent price declines every month:

Among all types of rental housing:

- Raleigh, N.C.: -0.9%

- San Francisco: -0.8%

- San Diego: -0.8%

- San Jose, Calif.: -0.8%

- New York City metro area: -0.7%

Single-family rentals:

- Boston: -1.2%

- Salt Lake City: -1%

- Austin, Texas: -0.8%

- Portland, Ore.: -0.7%

- San Jose: -0.6%

Multifamily rentals:

- Raleigh, N.C.: -1.4%

- San Diego: -1.2%

- San Jose: -1%

- Orlando, Fla.: -0.9%

- Charlotte, N.C.: -0.9%