Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Feb 09, 2023 3 min read
Photo collage illustration of house rooftop, juxtaposed against a downward arrow
Money; Getty Images

It seems like almost everything is more expensive now than it was a year ago — especially when it comes to housing. But now there’s finally some good news for renters.

What the data says

Data from real estate brokerage Redfin shows that, in December, national rent prices rose 4.8% (to a median of $1,979 per month) on an annual basis, while overall housing costs rose 7.5%. That’s the first time in over a year that rent prices have increased by a smaller margin than housing costs — and there’s good reason to think that trend will continue.

Redfin attributes the slowing rent price growth to waning demand, thanks in part to the fact that soaring prices last year discouraged many renters from seeking out new leases.

On top of that, new apartment construction and an increase in the number of homeowners renting out their homes — rather than selling them — means there’s a bigger supply of rental properties on the market.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Would you rather be building equity in a home than paying rent to a landlord?
Work with a licensed Rocket Mortgage (NMLS #3030) representative today. Click on your state below to get started.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Rates

What the experts say

“Rental prices are likely to fall from here nearly everywhere in the country, so it may also be worth waiting a few months if you’re not in a hurry to sign a new lease,” Redfin Senior Economist Sheharyar Bokhari said in a blog post this week.

Your calculations about whether to rent a home or buy one could also change in the near future, he says, because mortgage rates and home prices are dropping in many cities, too.

Bokhari added that potential renters may have more leeway to bargain with landlords and management companies now that demand has decreased and prices are falling. That could mean perks like free parking or a free month’s rent.

Keep in mind

Rent prices have already dipped significantly in some parts of the country, according to a recent report from Realtor.com. Riverside, California; Las Vegas, Nevada; and Sacramento, California, have seen the largest drops.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Buy your new home with more convenience and less hassle
A Mortgage Expert at Rocket Mortgage (NMLS #3030) can lend you a hand for a smoother process. Your dream home is possible. Click below to make it happen.
View Rates

More from Money:

5 Cities Where Home Prices Dropped the Most From Their 2022 Peak

Nearly a Quarter of Millennials Rely on Their Parents to Pay for Rent

How to Spot a Good Deal When Shopping for a Home