News (US:NWS) Prnewswireยท2024-06-11 10:00Core Insights - The national median asking rent for 0-2 bedroom units decreased by 0.7% ($13) to $1,732, marking a decline across all size categories and remaining just $24 (1.4%) below its peak in August 2022 [1][10] - Over the past five years, median asking rents have increased by 21.5%, indicating a significant long-term upward trend despite recent declines [1][10] Rental Trends - The median rent for studio units fell by 1.9% year-over-year to $1,449, which is 17.3% higher than five years ago [4][6] - One-bedroom unit rents decreased by 1.1%, marking the twelfth consecutive year-over-year decline, with current rents at $1,612, still 20.3% higher than five years ago [4][6] - Two-bedroom units saw a 0.7% decline, also the twelfth consecutive annual drop, with current rents at $1,925, which is 23.3% higher than five years ago [4][6] Regional Variations - The most significant year-over-year rent declines were observed in the South, particularly in Austin (-9.3%), Nashville (-8.3%), and San Antonio (-8.2%) [11] - In the West, notable declines included Phoenix (-4.5%), San Francisco (-4.3%), and Las Vegas (-4.1%) [11] - Conversely, rents increased in the Midwest, with Indianapolis (+4.4%), Milwaukee (+4.3%), and Minneapolis (+2.9%) showing growth, while the Northeast saw increases in Pittsburgh (+2.4%) and New York (+2.2%) [11] Economic Implications - The decline in rents is contributing to a slowdown in shelter inflation, which is a significant component of overall inflation metrics [10][15] - The Consumer Price Index for shelter rose by 5.5% year-over-year in April, down from a peak of 8.2% in March 2023, indicating a lagging response to market rent changes [10] - The current rental market dynamics suggest potential challenges for further reductions in overall inflation, complicating Federal Reserve policy decisions [10][15]