Median rents dropped 1% nationwide in June from the same month a year earlier, according to a report from Realtor.com.

The median rent for all unit sizes was $1,745. Median rent for a one-bedroom 🅘fell 0.7% to $1,630, the first year-over-year decline since 2020. The dip in one-bedroom rents comes after ಌan initial drop in rent for two-bedroom units last month. 

Month-over-month, median rent increased $7, but♛ was still down $31 from its July 2022 peak. The🍸 cooling could mean the beginning of a more long-term trend in rents, according to Realtor.com. 

“The continuing declines in rental prices mark a promising shift for renters after months where many renters spent more than they could afford on housing costs,” said Realtor.com Economist Jiayi Xu. “We expect to see rental prices continue to show small year-over-year declines through the end of the year.”  

Des🌳pite the initial drop in median rents, they are still elevated from where they were pre-ꦐpandemic. For units of all sizes, rent was 24.1% higher than the same time in 2019. 

The median rent for studios was up $14 from May, and 1% year-over-year, ending June a🍒t $1,445. Median rent for studios was 18.8% higher than the same time four years ago. 

Two-bedroom units have seen the largest growth in median rent, according to the Rไealtor.com data,💧 jumping 27% since June of 2019. 

Affordable Areas Key for Young Workers

Cities with more affordable rent are becoming increasingly attractive to young workers, who prioritize remote work, according to💖 Realtor.com. 

Of the 10 metros with the highest share of young households and young renters, Oklahoma City was the most affordable, with y🌄oung people spending 18.7% of their monthly income on rent during June. 

People within the ages of 25-34 make up 30% of tech sector empl꧋oyees. Six of the metros with the highest share of young renters also had higher-than-average annual growth in their tech sectors. 

Breakdown by Region

Rents in Western metros are dropping faster than any other U.S. regions, falling 3.8% year-over-year, just as home price🃏s are declining in some Western cities. 

Rents are still climbing in the Northeast, however, with some parts of New York City reporting record-setting rents throughout the𒆙 summer. Year-over-year, the median rent in New York city has grown 4.7%. Median rent in Boston was up 2.5% year-over-year. Part of that growth may be from the strong labor market in the Northeast, according to Realtor.com, but limit🍨ed supply may also contribute. 

Rents in the Midwest are up 3.2% year-over-year. Of the top 10 metr๊os experiencing ꦑthe most rent growth, half are in the Midwest. 

In the South, rents fell 1.3% year-over-year.