Apartment Rents Dipped In August For The First Time In Nearly A Year

A $10 drop in the median rent from July to August was enough to break a months-long trend in rising apartment rents in the 50 largest metros in the U.S.

Median rents dropped for the first time in nearly a year in August, according to Realtor.com data, to $1,771 a month.

The drop might be attributable to seasonal variations in the market, however, and it doesn't make apartments much more affordable in most places. The U.S. median rent in August 2022 was 9.8% higher than the same month in 2021.

“Affordability is still a very big challenge for renters,” Realtor.com economist Jiayi Xu said in a statement. “Inflation is still high, and renters are still feeling the stress of higher costs.”

Renters earning a typical U.S. household income devoted 26.4% of their income to pay for rental property, compared with 25.7% in August 2021, according to Realtor.com. 

Nine of the top 50 U.S. metros had a rent share higher than 30% relative to the median household income, with Miami being the least affordable rental market in August 2022 at 46.5% of a typical income.

Other relatively unaffordable markets include Los Angeles, San Diego and Riverside, California; Orlando and Tampa, Florida; New York; Boston; and Providence, Rhode Island.

Oklahoma City, Oklahoma, by contrast, is currently the most affordable rental market. The median rent for a typical zero-to-two-bedroom unit was 42% lower than its estimated maximum affordable rent (30% of income).

Other relatively affordable markets include Minneapolis; St. Louis; Kansas City, Kansas; and Louisville, Kentucky, though even they have seen rent increases over the last year.