As 2023 wrapped up, the rental market witnessed a calm conclusion to an otherwise stormy year, as revealed in the December 2023 Apartments.com Rent Growth Report. Even though rent prices found their footing, the vacancy rate didn't follow suit, inching up to 7.5% by year's end from 7.3% in September. However, the forecast for 2024 suggests a potential uptick in rent prices due to a slowdown in construction activity, resulting in fewer new apartment buildings. This scarcity of available apartments is likely to push the vacancy rate downwards, setting the stage for a rise in rents.
Rent Prices in the Midwest Climb Higher
In December, rent prices stayed put for most of the US. But there’s always an exception, and just as in months past, it’s the Midwest, where rent prices were still on an uphill climb. Even though much of the country was unchanged, the Midwest saw a 0.1% bump in December rent prices, wrapping up the year with a 2.6% year-over-year increase. The Northeast, even though rents didn’t budge in December, also had a noteworthy year-over-year growth at 2.4%.
While the Midwest led the regions, there are two areas that deserve an honorable mention: Orange County, California, and Northern New Jersey. Orange County saw a 3.9% rise in rent prices, with Northern New Jersey not far behind with a 3.7% increase in rent prices.
Cities with the Biggest Rent Increases
Last month, the cities with the largest rent increases were Anaheim, California; Clifton, New Jersey; Cleveland, Ohio; and Milwaukee, Wisconsin. Surprisingly, the only city to make it into the top five in December was Cleveland. That said, most of the cities with the biggest increases in rent continue to be in the Midwest.
Here are the five cities with the biggest rent increases for December 2023:
- Louisville, Kentucky (+3.7%)
- Cincinnati, OH (+3.3%)
- Chicago, IL (+2.9%)
- Washington, DC (+2.9%)
- Cleveland, OH (+2.7%)
Cities with the Biggest Rent Declines
Rent prices have been rocky in Austin, Texas. Last month, they were down only slightly at -0.8%. However, back in October, Austin had the largest drop in rent prices, down 4.7%. This city tops the list for biggest rent decreases once again in December, down 5.1%. Interestingly, eight of the top 10 cities with the largest rent drops were in the South.
Here are the five cities with the biggest rent declines for December 2023:
- Austin, TX (-5.1%)
- Orlando, FL (-4.8%)
- Jacksonville, FL (-3.4%)
- Charlotte, NC (-3.3%)
- Atlanta, GA (-2.6%)
Mid-Priced Apartments Are Most Sought-After
Renters are feeling the pinch from inflation. A November 2023 survey conducted by Apartments.com found that 80 percent of renters have been impacted by inflation, and nearly all of those expect to continue to experience financial strain for at least the next six months. Therefore, it isn’t surprising that mid-priced apartments are in high demand while the demand for luxury apartments continues to decline. Because of this, luxury apartments saw rent prices decrease, ending the year down 0.4%.
However, the weakest demand overall was for low-priced apartments. This could be attributed to households at this price point struggling with higher costs for housing and everyday items, leading many to seek alternative housing solutions like moving in with roommates or returning to family homes.
Current Rent Prices Across the US
Want to see what rents are doing where you live? Here’s a look at current rent prices in cities across the country:
|
City |
Current Average Rent |
Last Month’s Average Rent |
Year-Over-Year Difference |
|
$2,209 |
$2,196 |
+2.32% |
|
|
$1,548 |
$1,545 |
-5.45% |
|
|
$1,434 |
$1,449 |
-7.53% |
|
|
$3,297 |
$3,318 |
+0.07% |
|
|
$1,562 |
$1,562 |
+0.34% |
|
|
$2,639 |
$2,639 |
+1.3% |
|
|
$1,677 |
$1,708 |
-2.3% |
|
|
$1,412 |
$1,410 |
-3.41% |
|
|
$1,752 |
$1,774 |
-0.97% |
|
|
$1,025 |
$1,016 |
+1.35% |
|
|
$1,291 |
$1,290 |
-1.99% |
|
|
$1,059 |
$1,052 |
-0.74% |
|
|
$1,354 |
$1,360 |
-2.45% |
|
|
$1,656 |
$1,652 |
-1.3% |
|
|
$2,115 |
$2,102 |
-1.67% |
|
|
$1,215 |
$1,212 |
-3.3% |
|
|
$3,487 |
$3,509 |
+0.93% |
|
|
$1,638 |
$1,635 |
+0.73% |
|
|
$1,146 |
$1,143 |
-0.84% |
|
|
$1,037 |
$1,029 |
+0.48% |
|
|
$2,884 |
$2,914 |
+5.86% |
|
|
$1,273 |
$1,276 |
-4.06% |
|
|
$2,940 |
$2,957 |
-1.48% |
|
|
$1,108 |
$1,108 |
-0.12% |
|
|
$1,238 |
$1,236 |
-2.19% |
|
|
$1,706 |
$1,708 |
+0.45% |
|
|
$2,069 |
$2,067 |
-1.47% |
|
|
$1,351 |
$1,352 |
+2.7% |
|
|
$2,021 |
$2,012 |
+0.29% |
|
|
$1,070 |
$1,064 |
+0.86% |
|
|
$1,306 |
$1,291 |
-0.33% |
|
|
$1,578 |
$1,568 |
-4.53% |
|
|
$3,653 |
$3,648 |
+0.82% |
|
|
$1,544 |
$1,533 |
-4.27% |
|
|
$1,637 |
$1,637 |
+1.19% |
|
|
$1,303 |
$1,299 |
-3.7% |
|
|
$1,255 |
$1,253 |
+0.47% |
|
|
$1,457 |
$1,449 |
-2.4% |
|
|
$2,318 |
$2,317 |
+2.27% |
|
|
$1,353 |
$1,350 |
-3.93% |
|
|
$1,289 |
$1,289 |
-0.06% |
|
|
$1,466 |
$1,468 |
-1.99% |
|
|
$1,026 |
$1,032 |
-0.68% |
|
|
$1,076 |
$1,067 |
-3.26% |
|
|
$2,231 |
$2,231 |
-1.98% |
|
|
$2,789 |
$2,783 |
-1.34% |
|
|
$2,439 |
$2,410 |
-0.76% |
|
|
$1,972 |
$1,968 |
+0.1% |
|
|
$1,576 |
$1,572 |
-2.09% |
|
|
$2,199 |
$2,219 |
+0.39% |
How Current Rent Prices Impact Renters
Roughly 43% of renters in the Apartments.com survey said they are planning to move by the spring of 2024. This, combined with a decrease in the construction of new apartment communities, could potentially result in lower vacancy rates and higher rent prices. If you’re thinking about moving soon, it’s a good idea to be aware of current rent trends since they can impact the timing of your move and your budget. By comparing the rental prices in this report with those from the reports of November and October, you can determine the overall trend in your area. To compare prices across the US, visit the US Rent Trends page, where you'll find the most current rent prices available based on CoStar data.
