Market update September 2024: Rent growth tamed for now

August saw flat rent growth in more cities than we’ve ever reported on in PayProp Insights. On the flipside, soaring rents in many other cities are holding the national median rent strong and steady.

• Zumper reports the national median rent for one-bedrooms rose just $3 this August, to $1,534, while two-bedroom rents increased $4 to $1,915.

• While that seems low, year-over-year increases in August for these units were 1.6% and 2.7% respectively, which is consistent with last month's YoY growth.

• “Strong renter retention alongside our growing national rent index underscores the robust demand present in the US market,” says Zumper CEO Anthemos Georgiades.

• Unsurprisingly, college towns like Syracuse, NY and Lexington, KY are leading the country in annual rent growth this back-to-school season.

• 42 of Zumper’s top 100 cities saw an increase in rental prices from the previous month, while 37 fell and 21 reported no change.

• Meanwhile, in the sales market, the national median list price showed a strong seasonal decline from July to August, falling from $437,450 to $429,990, according to Realtor.com.

• The number of newly listed homes also dropped 1% month over month, going from 387,582 in July to 383,552 in August.

• This trend isn’t cause for major concern. Buying and selling activity peaks during the summer, particularly in June, before gradually cooling off as families settle in before the school year.

• The National Association of Home Builders reports builder confidence in the market for newly built single-family homes rose two points to 41 in September. This ended four consecutive months of decline.

• Single‐family housing starts in August reached 992,000 – 15.8% above the revised July figure of 857,000.

More rental market headlines
Why more property managers are offering rental concessions – PayProp blog
Austin is leading a rent renaissance in the Sunbelt right now – Fortune
Why Harris and Trump can't stop talking about housing – Axios