Rents drop in most expensive cities
- Rents in almost two-thirds (62%) of major US metro areas reached record highs in 2023
- 14 of those cities reached their peak in the final quarter of 2023
- However, the tide could now be starting to turn - In Q1 2024 the majority of key metro areas saw rents drop
April 2024 - 2023 saw record rents in the majority of key metro areas, with rents in 18 out of the top 29 hitting all-time highs*.
But new data from the number 1 roommate finder, SpareRoom, reveals that the tide could now be starting to turn. Roommate rents fell in 18 of the 29 top metro areas (including the country’s most expensive cities), comparing Q1 2024 with Q4 2023.
Dallas saw the biggest drop, down 10%, followed by New York (-5%) and Portland (also -5%). New York remains the most expensive city for renters, although in Q1 2024, the average monthly roommate rent dipped under $1,500 (to $1,489) for the first time since 2022.
Overall, demand has fallen, while the supply of rooms available has gone up. In March, the ratio of renters in market per room available across the US was 3.2, almost half what it was in spring of 2022, when the ratio was 6.3
Please see a list of the top US metro areas that have seen rents drop, comparing Q1 2024 with Q4 2023**:
| Metro areas | Average roommate rent ($) | Change in rent (%) Q1 2024 vs Q4 2023 |
| Austin | $900 | -4% |
| Boston | $1,352 | -4% |
| Dallas | $819 | -10% |
| Denver | $1,066 | -3% |
| Houston | $830 | -1% |
| Jacksonville | $770 | -1% |
| Las Vegas | $879 | -2% |
| Los Angeles | $1,331 | -1% |
| Miami | $1,258 | 0% |
| New York | $1,489 | -5% |
| Portland | $872 | -5% |
| Riverside | $1,017 | -1% |
| San Antonio | $725 | -1% |
| San Diego | $1,293 | -2% |
| San Francisco Bay Area | $1,263 | -2% |
| Seattle | $1,040 | -3% |
| Tampa | $966 | -2% |
| Virginia Beach | $855 | -4% |
Matt Hutchinson, SpareRoom spokesperson comments: “With rents hitting all-time highs in many major metro areas over the past year, renters are feeling the financial squeeze. These latest figures will hopefully give them a bit of hope that the market is easing a little.
An easing of the demand/supply ratio is definitely helping. Hopefully, that trend will continue and make life easier for renters across the country.”
For the full list of average roommate rents for the top US cities head to: https://www.spareroom.com/content/information-for-roommates/average-rents-us
***
Notes to editors
*Based on analysis of over 68,000 room ads placed on SpareRoom between January and December 2023 ↩
**Based on an analysis of over 40,000 room ads on SpareRoom, comparing Q1 2024 vs Q4 2023 ↩