Highlights:
- December 2023 marks the eighth year-over-year rent decline in a row for 0-2 bedroom properties observed since trend data began in 2020. Asking rents dipped by $7 or -0.4% year-over-year (Y/Y).
- The median asking rent in the 50 largest metros decreased to $1,713, down by $4 from last month and down $63 from its July 2022 peak.聽
- Median rent declined for all size categories: Studio: $1,437, down $14 (-1.0% ) year-over-year; 1-bed: $1,593, down $12 ( -0.7%) year-over-year; 2-bed: $1,896, down $7 (-0.4% ) year-over-year.
In December 2023, the U.S. median rent continued to see a year-over-year decline for the eighth month in a row, down -0.4% for 0-2 bedroom properties across the top 50 metros, a pace slightly slower than the -0.6% seen in November. The median asking rent was $1,713, down by $4 from last month and $63 (-3.5%) less than the peak seen in July 2022. However, it was still $309 (22.0%) higher than the same time in 2019 (pre-pandemic).
In 2023, the rental market experienced a significant shift in momentum. The influx of record-high new multi-family homes exerted downward price pressure on median asking rents, resulting in eight consecutive months of year-over-year declines. Renters experienced a welcome reprieve, as the year did not witness a new peak in rent prices. Looking forward, Realtor.com anticipates continued weakness in the rental market for 2024, as the completion of much-needed supply is expected to further impact the dynamics.
Figure 1: Rents Decline Again, but Nationwide Rent is just 3.5% Below 2022 Peak
Rent Declines Continued for All Units
n December 2023, the median asking rent for two bedroom units dropped -0.4%, a dip slightly smaller than the -0.6% seen in November, yet still marking the eighth consecutive month of annual declines. The median rent for two bedrooms was $1,896 nationally, $73 (-3.7%) lower than the peak seen last July. Nevertheless, larger unit rents had the highest growth rate over the past four years, up by $377 (24.8%).
The rent for one-bedroom units slipped -0.7% in December 2023 on a year-over-year basis, marking the seventh decline in a row at a slightly slower pace compared to the decline of -0.6% in December. The median rent was $1,593, $59 lower than the peak observed during last July, but still $284 (21.7%) higher than in December 2019.
In December, the median asking rent for studios fell by -1.0%, marking the sixth consecutive month of annual declines, and it was the largest year-over-year decline since the rate started to drop below zero in July. The median rent of studios was $1,437 in December, down by $34 (-2.3%) from its peak seen in Feb. 2023. Nevertheless, the median asking rent for studios was still $206 (16.7%) higher than four years ago鈥揳 significant jump that is only slightly smaller than that seen in larger units.
Figure 2: November Rents Declined Modestly (<=1%) Nationwide for All Unit-Sizes
Table 1: National Rents by Unit Size
| Unit Size | Median Rent | Rent YoY | Rent Change – 4 years |
| Overall | $1,713 | -0.4% | 22.0% |
| Studio | $1,437 | -1.0% | 16.7% |
| 1-bed | $1,593 | -0.7% | 21.7% |
| 2-bed | $1,896 | -0.4% | 24.8% |