Spending a bit more of your paycheck on rent than you would like? You're not alone, but you might be in over your head more than others.
A new report from Redfin shows rent prices are dropping in certain cities, namely those that saw surging demand during the pandemic. That includes Florida's four most populous metro areas, some California cities and Austin, Texas.
In Florida, Redfin reports Jacksonville and Tampa both saw their largest asking-rent-price drop since at least 2019, declining 12.4% and 6% respectively. Meanwhile, Orlando rent fell 4.8%, and Miami dropped 3.8%.
But the largest drop in rental price among the 33 metropolitan areas that Redfin analyzed was Austin, falling a record 12.6% from the year earlier.
The real estate company says both Florida and Texas appear to be lowering rental prices to compete for tenants after a pandemic-era building frenzy coupled with then-surging rents priced some residents out. Now newly built apartments in the U.S. are filling at their slowest pace since 2020, other Redfin analysis shows, and lower rents might be an attempt to draw them back.
The other biggest rent declines were in San Diego and San Francisco, at 11.4% and 6.1% down respectively, Redfin data shows.
RELATED STORY | This map shows how much you have to earn to afford rent in every state
Elsewhere, though, rent prices are still sky-high and heading higher, particularly in the Midwest and Northeast metropolitan areas that haven't been building as many apartments and are more affordable amid an inflation-weary nation.
Redfin says the country's median asking rent rose 0.7% in June to $1,654, which it states is the biggest gain in over a year and is the highest median price since October 2022.
But some areas are feeling it the worst.
In Virginia Beach, Virginia, median rental prices rose 12.9% in June compared to last year — the highest rise among the 33 metropolitan areas. Cincinnati followed at 12.2%, then Washington, D.C. at 11.9%, Chicago at 11.3% and Baltimore at 10.7%.
So if you're still looking for those bargain rentals, Redfin suggests shopping around Florida or Austin — just don't fall for schemes that may make you pay for more than just the rental price.
"With so much supply on the market, renters may be able to get concessions like free parking or discounted rent," said Redfin senior economist Sheharyar Bokhari. "But renters in Florida should be aware that landlords are grappling with surging home insurance costs, and they may ultimately ask tenants to foot the bill via higher rents."
These are the median rents in cities that saw a price decline in the last year, according to Redfin:
- Austin, Texas (-12.6%): $1,485
- Jacksonville, Florida (-12.4%): $1,494
- San Diego, California (-11.4%): $2,730
- San Francisco, California (-6.1%): $2,737
- Tampa, Florida (-6.0%): $1,750
- Orlando, Florida (-4.8%): $1,780
- Seattle, Washington (-4.6%): $2,094
- Nashville, Tennessee (-4.2%): $1,602
- Phoenix, Arizona (-4.1%): $1,539
- Los Angeles, California (-3.9%): $2,796
