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Annual Rent Report 2022

Zumper’s Annual Rent Report for 2022 draws on the past year of data, knowledge of economic trends, Zumper surveys (including our annual survey of renters across the country), internal data on renter search, and ongoing conversations with clients, experts, and others in the industry. All this intel gives us a comprehensive view of the last year, and perhaps the rental industry’s most complete look at what’s to come in 2023.

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Key Themes and Findings

Consumers lack confidence in the economy. We’re seeing pandemic trends unwind at breakneck speed as consumers move from fear of missing out (FOMO) to fear of the unknown (FOTU). New household formation is shrinking, occupancy is down, and prices are beginning to level off and even decline in many markets. More than three-fourths of survey respondents think we’re in a recession, more parents are helping their adult kids pay rent this year than last, and more people are living at home with their parents.

Owning a home is increasingly out of reach. Today’s interest rates are driving even more people out of the home-buying process and chipping away at confidence in the idea that owning a home is part of the “American dream”. Over half of respondents believe the “new American dream” is being untethered to homeownership and over a third reported that rising interested rates have deterred them from buying a home.

Florida continues to defy all expectations with continued migrations and subsequent rent hikes. People who migrated to Florida during the pandemic are staying at much higher rates, which means rent increases are sticking around for a bit longer—even during the typically slow winter season. According to Zumper’s December data, every city in Florida is up over last month (except Tampa, where the one-bedroom median is flat).

New York City continues to surge upward, in both number of new residents and rent. New York is undersupplied and unable to absorb all the people who want to live there, creating fierce competition for available rentals. Nearly half of NYC-based respondents to our annual survey submitted 5+ more applications before signing a lease.

Metro areas that welcomed hordes of new residents during the pandemic are experiencing that trend reversing. Zoomtowns like Boise, Austin, and Phoenix are no longer luring new residents, so their upward curves are beginning to flatten, and rents will likely decrease steadily over the next six months.

Good news for renters: rent prices are now increasing at or below current inflation rates. As new household formation continues to shrink and consumers put off big moves until the economic picture is more clear, we do expect rents to decrease across much of the country for at least the first quarter of 2023. But, by around mid-year, consumer confidence will likely improve significantly, and renters will help drive the economy with more optimistic spending habits. By the end of 2023, we’ll potentially see the first “normal” season since 2019.

About

For Zumper’s end-of-year survey, renters aged 18+ from all 50 U.S. states as well as Washington, D.C. were surveyed from August through September 2022. The survey was sent to Zumper and PadMapper users based in the United States and shared among their family and friends. All responses were gathered online, with a monetary incentive of the chance to win one of four $500 cash prizes.

The rental data for Zumper’s National Rent Report analyzes over one million active listings across the country every month. Listings are aggregated to calculate median asking rents for the top 100 most populous cities and therefore provides a comprehensive view of the current state of the market. Any data that is reported does not include short term listings. View our full methodology here.

To keep up to date with rent changes across the country, like or follow Zumper on Facebook and Twitter. In the market for a new place? Search apartments for rent on Zumper.

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