Renters Across the US Have Something to Cheer About: Rents Declined in November
Renters across the US have something to cheer about: Rents declined in November, making it a bit more affordable for many—especially those earning minimum wage.
Across the 50 largest metros, the median rent was $1,703—down $17 from last month and $57 from its peak in August 2022, according to a new Realtor.com report.
The median rent for 0-2 bedroom properties dropped by $19 year over year, or 1.1%, marking a hopeful trend in rental affordability.
Nationwide Rent Declines
Renters saved last month across the board, with smaller properties seeing the largest percentage drop in rents.
The median rent for studio apartments fell by 1.6% year over year, to $1,423, a $67 decrease from its peak in October 2022.
Minimum-Wage Workers Struggle with Affordability
Even with falling rents, minimum-wage earners face an uphill battle when it comes to comfortably affording housing.
The November rental report found that minimum-wage renters still have to clock significant hours in cities with the largest rent declines to afford a typical 0-2 bedroom rental.
The Best and Worst Cities for Minimum-Wage Workers
Nashville, TN, and Austin, TX, lead the list in the highest number of hours minimum-wage earners need to clock in to afford the typical rent. Paying rent in these cities takes two minimum-wage workers not only splitting the rent—but also working an untenable 82 and 79 hours per week, respectively, to make rent each month.
Relief on the Horizon for Some Cities in 2025
If rents remain consistent with November 2024 levels, minimum-wage earners in eight markets will see at least a two-hour reduction in the weekly work hours needed to afford rent.
What Rent Declines Mean for the Future
The sustained rent decline is a win for renters and a positive indicator of broader economic trends.
“The relative steadiness in rents should translate into slower shelter inflation in the months ahead, alleviating one of the biggest recent drivers of a rising price level,” says Realtor.com economist Jiayi Xu.
Conclusion
While the decline in rents is a positive development, challenges remain. In markets where the federal minimum wage of $7.25 per hour persists, many renters will likely continue to struggle. However, the upcoming increases in minimum wage in some cities may provide relief to minimum-wage earners.
FAQs
Q: What is the median rent for 0-2 bedroom properties in the 50 largest metros?
A: The median rent for 0-2 bedroom properties is $1,703, down $17 from last month and $57 from its peak in August 2022.
Q: How much did median rent for studio apartments drop year over year?
A: The median rent for studio apartments fell by 1.6% year over year, to $1,423, a $67 decrease from its peak in October 2022.
Q: What is the number of hours minimum-wage workers need to clock in to afford a typical 0-2 bedroom rental in cities with the largest rent declines?
A: In cities such as Nashville, TN, and Austin, TX, minimum-wage workers need to work an untenable 82 and 79 hours per week, respectively, to make rent each month.
Q: What is the forecast for minimum-wage earners in eight markets in 2025?
A: If rents remain consistent with November 2024 levels, minimum-wage earners in eight markets will see at least a two-hour reduction in the weekly work hours needed to afford rent.
