https://www.cnn.com/2023/06/26/economy/us-rents-may/index.html CNN values your feedback 1. How relevant is this ad to you? ( ) ( ) ( ) ( ) ( ) 2. Did you encounter any technical issues? [ ] Video player was slow to load content [ ] Video content never loaded [ ] Ad froze or did not finish loading [ ] Video content did not start after ad [ ] Audio on ad was too loud [ ] Other issues [ ] Ad never loaded [ ] Ad prevented/slowed the page from loading [ ] Content moved around while ad loaded [ ] Ad was repetitive to ads I've seen previously [ ] Other issues [ ] [ ] [ ] [ ] [ ] [ ] Cancel Submit Thank You! Your effort and contribution in providing this feedback is much appreciated. Close Markets Tech Media Calculators Videos More Markets Tech Media Calculators Videos Audio Live TV Log In My Account * Settings * Topics You Follow * Log Out Your CNN account Log in to your CNN account [ ] Search Log In My Account * Settings * Topics You Follow * Log Out Your CNN account Log in to your CNN account --------------------------------------------------------------------- Live TV Audio --------------------------------------------------------------------- Edition US International Arabic Espanol Edition * US * International * Arabic * Espanol --------------------------------------------------------------------- Markets Tech Media Calculators Videos Follow CNN Business * * * --------------------------------------------------------------------- * US + Crime + Justice + Energy + Environment + Extreme Weather + Space + Science * World + Africa + Americas + Asia + Australia + China + Europe + India + Middle East + United Kingdom * Politics + SCOTUS + Congress + Facts First + 2020 Election * Business + Tech + Media + Calculators + Video * Markets + Pre-markets + After-Hours + Market Movers + Fear & Greed + World Markets + Investing + Markets Now + Before the Bell + Nightcap * Opinion + Political Op-Eds + Social Commentary * Health + Life, But Better + Fitness + Food + Sleep + Mindfulness + Relationships * Entertainment + Movies + Television + Celebrity * Tech + Innovate + Gadget + Foreseeable Future + Mission: Ahead + Upstarts + Work Transformed + Innovative Cities * Style + Arts + Design + Fashion + Architecture + Luxury + Beauty + Video * Travel + Destinations + Food & Drink + Stay + Videos * Sports + Pro Football + College Football + Basketball + Baseball + Soccer + Olympics + Hockey * Videos + Live TV + Digital Studios + CNN Films + HLN + TV Schedule + TV Shows A-Z + CNNVR * CNN Underscored + Electronics + Fashion + Beauty + Health & Fitness + Home + Reviews + Deals + Money + Gifts + Travel + Outdoors + Pets + CNN Store * Coupons * More + Photos + Longform + Investigations + CNN Profiles + CNN Leadership + CNN Newsletters + Work for CNN Markets DOW S&P 500 NASDAQ Fear & Greed Index ----- is driving the US market Latest Market News More than 7,000 US flights delayed or canceled after severe storms Don't worry pizza-heads, NYC is not coming for your pies Inflation hurts. But White House economists find that it's even worse in every other G7 nation Something isn't loading properly. Please check back later. Ad Feedback Rent is falling in America for the first time in years By Alicia Wallace, CNN Published 6:35 AM EDT, Mon June 26, 2023 Link Copied! Minneapolis CNN -- Some welcome news for renters: The US median rent in May fell from May 2022, the first annual rent decline in at least three years, according to a Realtor.com report released Monday. In May, the national median asking rent was $1,739, which was up a skosh ($3) from April but down 0.5% from May 2022. It's the first decline since Realtor.com started tracking the year-over-year data in March 2020. "This is yet another sign that rental-driven inflation is likely behind us, even though we may not see this trend in official measures until next year," Danielle Hale, Realtor.com's chief economist, said in a statement. "Although still modest, a decline in rents combined with cooling inflation and a still-strong job market is definitely welcome news for households." Rents have gradually come down from July 2022's peak of $1,777, but they remain nearly 25% higher than in 2019. After a wave of "pandemic pricing" during much of 2020, rents started to soar in 2021 and into the middle of last year as people came back to urban cores for in-person work and school. Would-be homeowners remained renters because they were priced out of buying a home and an overall lack of housing also sent rents soaring. Although the overall market is moving in a more favorable direction for renters, there might still be an element of sticker shock out there for people who have chosen to sit tight, Hale said. "For renters who maybe have stayed put over the past couple of years and haven't moved, they might not be at the market rent level," Hale said in a follow-up interview with CNN. "If they were to move this year, even though market rents are declining, they may see a higher rent payment." The West and the South recorded year-over-year rent declines in May of 3% and 0.7%, respectively, whereas the Midwest and Northeast are still seeing rents climb higher, according to the report. For the Midwest, that's likely because cities in those areas remain largely affordable and are experiencing low unemployment. A strong labor market in the Northeast is also likely increasing demand for rentals, Hale said. The metro areas with the largest year-over-year rent jumps include Columbus, Ohio (9.3%); St. Louis, Missouri (7.7%); and Cincinnati, Ohio (7.7%). The largest year-over-year declines are in Las Vegas (-6%); the Riverside and San Bernardino area in California (-5.9%); and Phoenix (-5.7%). Rents are expected to continue to soften through the remainder of this year and into next year, Hale said. Helping those declines will be an expected surge in supply, Hale said, noting the historic levels of multifamily construction activity currently underway. It might take some time for this cooling to be reflected in national inflation gauges, specifically the Consumer Price Index. Shelter, which is largely a measurement of rental leases as the implicit rental value of owner-occupied properties, carries a lot of weight in the CPI calculations; however, it comes at a significant lag because of how infrequently the data is collected (and how infrequently rents change in leases). -- CNN's Anna Bahney contributed to this report Related Ad Feedback More from CNN Business [230627151951-ford-lightning-electri] Bill Pugliano/Getty Images Ford to lay off workers as it focuses on electric vehicles Jun 27, 2023 [230627121400-sean-diddy-combs-file-] Jeff Kravitz/FilmMagic/Getty Images Diageo ends its 15-year partnership with Diddy following lawsuit Jun 27, 2023 Ad Feedback CNN Business Videos [230627160224-nasa-thumb-01] Hear the mesmerizing sounds of space translated by NASA Jun 27, 2023 [230627091220-brian-moynihan-cnn-int] CNN Bank of America CEO predicts mild recession ahead for U.S. Jun 27, 2023 [230627075152-pickleball-vpx] CNN The US has an empty office building problem. Here's what landlords are doing about it Jun 27, 2023 [200915155108-01-solar-cycle-25-nasa] NASA's Solar Dynamics Observatory Everything you wanted to know about the solar cycle Jun 27, 2023 Ad Feedback Ad Feedback [ ] Search Log In My Account * Settings * Topics You Follow * Log Out Your CNN account Log in to your CNN account --------------------------------------------------------------------- Live TV Audio --------------------------------------------------------------------- * US + Crime + Justice + Energy + Environment + Extreme Weather + Space + Science * World + Africa + Americas + Asia + Australia + China + Europe + India + Middle East + United Kingdom * Politics + The Biden Presidency + Facts First + US Elections * Business + Tech + Media + Calculators + Videos * Markets + Pre-markets + After-Hours + Market Movers + Fear & Greed + World Markets + Investing + Markets Now + Before the Bell + Nightcap * Opinion + Political Op-Eds + Social Commentary * Health + Life, But Better + Fitness + Food + Sleep + Mindfulness + Relationships * Entertainment + Movies + Television + Celebrity * Tech + Innovate + Gadget + Foreseeable Future + Mission: Ahead + Upstarts + Work Transformed + Innovative Cities * Style + Arts + Design + Fashion + Architecture + Luxury + Beauty + Video * Travel + Destinations + Food & Drink + Stay + News + Videos * Sports + Pro Football + College Football + Basketball + Baseball + Soccer + Olympics + Hockey * Videos + Live TV + Digital Studios + CNN Films + HLN + TV Schedule + TV Shows A-Z + CNNVR * Audio * CNN Underscored + Electronics + Fashion + Beauty + Health & Fitness + Home + Reviews + Deals + Money + Gifts + Travel + Outdoors + Pets + CNN Store * Coupons * Weather + Climate + Storm Tracker + Wildfire Tracker + Video * More + Photos + Longform + Investigations + CNN Profiles + CNN Leadership + CNN Newsletters + Work for CNN --------------------------------------------------------------------- Audio Live TV Follow CNN Business * * * * Log In My Account * Settings * Topics You Follow * Log Out Your CNN account Log in to your CNN account --------------------------------------------------------------------- Most stock quote data provided by BATS. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. All times are ET. Factset: FactSet Research Systems Inc. All rights reserved. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Fair value provided by IndexArb.com. Market holidays and trading hours provided by Copp Clark Limited. Terms of Use Privacy Policy Ad Choices Accessibility & CC About Newsletters Transcripts (c) 2023 Cable News Network. A Warner Bros. Discovery Company. All Rights Reserved. CNN Sans (tm) & (c) 2016 Cable News Network.