Rent Prices Cool The Most In These Five Cities 

Amid a historic stretch of inflation over the last year, the cost of housing (especially rent) has been one of the most significant pressures on household finances. 

The good news from the National Rent Report for June 2022 from Zumper, an online platform for rental searches, shows a long-awaited slowdown in rents arrived in June. 

Zumper’s National Rent Index for a one-bedroom only grew .5% in June over the prior month, while two bedrooms are down 2.9%. This is “a sign that rent hikes are beginning to slow,” Zumper said in the report. 

“With an unpredictable stock market, the ever-increasing cost of living, ongoing war in Ukraine, and talk of a recession, many consumers are tightening their wallets and reconsidering their living arrangements yet again.

“For many would-be home buyers, the recent interest-rate hike was the final straw, and mortgage applications fell to a 22-year low this month, according to the Mortgage Bankers Association.

“But one consumer’s opt-out is another’s opportunity: As the housing market begins to cool, price cuts are following and houses are staying on the market for longer periods of time. Most markets have said goodbye to the days of dozens of lavish offers within hours of listing a house. The subsequent price cuts have created pockets of opportunity for renters who’ve been looking to buy a home for years and are a likely explanation for this month’s dramatic decrease in two-bedroom rent prices.” — Zumper 

On a year-over-year basis of national median rents for one and two bedrooms, the pace of increases appears not just to have leveled off but is now reversing. 

Here are the five metro areas where rent prices are decreasing for one- and two-bedroom apartments between May and June. Tallahassee, Florida, had the largest drop, followed by Anchorage, Alaska. 

1. Tallahassee, Florida

Median rent price for a 1-bedroom apartment: $860 
Month-over-month change in price: -6.5%
Year-over-year change in price: 7.5%

2. Anchorage, Alaska

Median rent price for a 1-bedroom apartment: $1,060
Month-over-month change in price: -6.2% 
Year-over-year change in price: 8.2%

3. Urban Honolulu

Median rent price for a 1-bedroom apartment: $1,530 
Month-over-month change in price: -6.1% 
Year-over-year change in price: 3.4%

4. San Diego 

Median rent price for a 1-bedroom apartment: $2,320
Month-over-month change in price: -6.1% 
Year-over-year change in price: 20.8%

5. Syracuse, New York 

Median rent price for a 1-bedroom apartment: $930
Month-over-month change in price: -6.1% 
Year-over-year change in price: 8.1%

Since the cost of rent and living expenses is on everyone’s mind, those renting in expensive metro areas (and can remotely work) might want to keep an eye on slumping rent prices in other metro areas.