2023 Rental Prices Drop: Key CPI Factor Sees Relief with Median Rent at $1,747

In October 2023, median monthly rents in the U.S. decreased, providing much-needed relief to inflationary pressures impacting consumers nationwide.

Rent costs constitute a significant share of the Consumer Price Index (CPI), accounting for roughly 32% of the overall index. This year, soaring rents have been a primary driver of the highest inflation rates seen in decades. However, the latest data from Realtor.com reveals a promising shift as rental prices begin to ease.

The national median rent dropped to $1,747 in October, marking a $25 decrease from September and a $47 decline from the peak recorded in July. Despite this reduction, rents remain 4.7% higher compared to the previous year, although this represents the smallest year-over-year increase in rental prices in the past 18 months.

Studio apartments experienced the largest rent increases over the year, rising by 6.7%, followed by one-bedroom units at 4.5%, and two-bedroom apartments at 3.7%.

Looking ahead, most landlords anticipate raising rents on at least one unit within the next 12 months, according to Realtor.com. In response, nearly 70% of renters surveyed are contemplating relocating to reduce their housing expenses, aiming to save approximately $200 per month.

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