U.S. renters looking to catch a break on rent might be in luck, according to data from Realtor.com.
Out of the 50 major markets across the country, 10 metro areas are offering median rents under $1,300. Most of those discounts can be seen in the Midwest, South, or Northeast while the Western region features none of the lowest-cost metro areas.
Here are the least expensive markets, according to Realtor.com:
1. Oklahoma City, Okla. – $982
2. Louisville, Kentucky. – $1,167
3. Birmingham, Alabama – $1,178
4. Rochester, N.Y. – $1,235
5. Columbus, Ohio – $1,242
6. Indianapolis, Indiana – $1,266
7. Memphis, Tennessee – $1,274
8. St. Louis, Mississippi – $1,279
9. Cleveland, Ohio – $1,290
10. Kansas City, Mo./Kan. – $1,298
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Oklahoma City is the only metro where rent is below $1,000 a month, the report found, with the median monthly rent coming in at $982.
“With high rents across the country, places that offer relative affordability tend to be in high demand, which means more competition and that these lower prices might not last,’ said Realtor.com chief economist Danielle Hale, in a press release.
“Many of these metros have fewer available rental homes than previous months, and fewer apartments to choose from means prices are likely to go up,” Hale added.
The report noted markets including Indianapolis, Birmingham, Columbus, Kansas City, Cleveland, and Rochester all saw year-over-year rents rise at a faster pace in January as renters responded to these low prices.
Low cost rental markets are also seeing vacancies come in, with the average rental vacancy rate hitting 7.6% across the 10 lowest-cost metros during the fourth quarter. This compares to a vacancy rate of 9.7% in the same quarter five years ago.
A “For Rent” sign is displayed in front of an apartment building in Arlington, Virginia, U.S., June 20, 2021. REUTERS/Will Dunham
Nationally, however, rents continued to cool rising just 2.9% over last year in January, the smallest increase in 22 months.
A report from RealPage published earlier this month showed retention among renters has dropped this year as more supply hits the market and renewals slow.
“Unlike in 2021 and 2022, renters facing lease renewals are seeing more attractively priced alternatives,” RealPage chief economist Ryan Parsons wrote in the report. “That encourages relocations.”
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