[Asia Economy Reporter Kim Hyunjung] Bloomberg reported on the 6th (local time) that rental prices for housing in U.S. cities are showing recent signs of cooling.
According to data from the real estate online company Zumper, the median price for a two-bedroom apartment fell 2.9% in June this year. The median rental price for one-bedroom apartments, which had surged 11.4% over the past 12 months, rose only 0.5% in June compared to the previous month, indicating a slowdown in the upward trend.
Crystal Chen, a spokesperson for Zumper, said, "This is the largest decline since the pandemic," adding, "Tenants are sending a clear message that they can no longer afford soaring rents and are anticipating a recession."
Although rents typically peak during the summer, the report stated that due to recent inflation and recession concerns, Americans are considering belt-tightening lifestyles such as living with roommates or downsizing their space.
Rental prices showed the most dramatic declines in some Sun Belt cities. In Miami, rents for two-bedroom apartments fell by 6%. In San Diego, rents for both one-bedroom and two-bedroom apartments dropped by 6.1%, and similar declines close to 6% were observed throughout Florida.
New York City tenants still bear the highest rents. The monthly rent for a one-bedroom unit was found to be $600 more expensive than in San Francisco, the second most expensive city. The rent for a one-bedroom apartment in New York rose 0.3% from the previous month in June and increased 40% year-over-year.
However, experts analyzed that prices are unlikely to fall sharply. A Zumper spokesperson explained, "We are still facing a housing shortage, and the labor market remains strong," adding, "Prices are not expected to drop significantly."
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