Rental Prices Broke Records in 44 Cities Last Month

Apartment buildings

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A shortage of homes for sale has forced more prospective buyers to rent. That is driving up prices in the rental market.

The U.S. median rental price in June jumped 8.1% compared to a year ago, reaching $1,575,® reports. Also, two-bedroom units saw the largest increase in rents at 10.2%, as the demand for more space continued to remain high.

Rental prices in 44 of the largest 55 metros broke records last month. The largest gains were recorded in Riverside, Calif.; Tampa; and Phoenix, which all posted increases above 20% year-over-year,® reports.

“The surge we’re seeing in rental prices is likely to exacerbate the K-shaped, or uneven, nature of the pandemic recovery in the U.S.,” says Danielle Hale,®’s chief economist. “Rents are rising at a faster pace than income, which is adding to the challenges faced by lower-income Americans as they struggle to recover from job losses and other hardships brought about by COVID.”

Rental prices aren’t likely to ease unless there is a shift with a higher number of homes for sale and rent, Hale adds.

June 2021 rental data for top 10 markets
June 2021 rental data for 50 largest metros