After three months of declines to close out 2022, asking rents fell at a slower pace in January, though a continued market correction contradicts seasonal expectations at a time when rent growth typically picks up steam. Typical asking rents are at $1,970 nationwide, 6.9% higher than one year ago, but down 0.8% from the peak of $1,987 recorded in September 2022, Zillow reports.
While metros such as Salt Lake City, Jacksonville, Fla., and New Orleans saw the steepest monthly declines of -1.0%, -0.8%, and -0.6%, respectively, January rents rose the most in Louisville, Ky. (0.9%), Buffalo, N.Y. (0.8%), and Memphis, Tenn. (0.5%).
Rents are roughly right where they were last January in several Inland West markets. On a year-over-year basis, rents are down 1.0% in Las Vegas, and barely up at all in Phoenix (1.1%), Sacramento (2.1%), Baltimore (2.6%), and New Orleans (2.8%). The first 3 are examples of markets cooling back down ever since overheating in 2021, partly thanks to outbound coastal California movers earlier in the pandemic. The latter 2 are markets with persistently low recent growth.
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