Jul 6, 2022 - Economy & Business

Huge rent price spikes may be coming to an end

Data: Zumper; Chart: Axios Visuals

Rent prices have soared over the last year, but the spike may be losing its edge.

Driving the news: The median rent price in June for a two-bedroom apartment was $1,708, up 8.9% from a year earlier, but at its lowest level since February, according to rentals site Zumper.

  • June's figure is $50 less than May’s high of $1,758.

The big picture: With the recent rise in mortgage rates and an increase in sale inventory, home buyers may be gaining leverage on sellers.

  • The May-to-June rent decline for two-bedroom units may be “a signal that some consumers who’d put off buying a home are finally making the jump as housing prices begin to level off,” Zumper reported.

Yes, but: The median price for a one-bedroom apartment still notched an all-time high of $1,422 in June.

  • The biggest risers were Norfolk, Virginia; Fresno, California; Chicago; El Paso, Texas; and Henderson, Nevada.
  • The biggest decliners were Tallahassee, Florida; Anchorage, Alaska; urban Honolulu; San Diego; and Syracuse, New York.

The bottom line: Any sign of a pullback in rental prices could portend a broader decline in the rate of inflation.

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