National Rent Prices Increased Again in May in the Fastest Pace Recorded in Nearly Two Years: Report

Rents In The U.S. Fall For Third Month In A Row — (Photo : Photo by Joe Raedle/Getty Images) An 'Apartments for Rent' sign hangs in front of a building on December 06, 2022 in Miami Beach, Florida. Reports indicate that apartment rents across the country dropped in November by the most in at least five years. National index of rents fell by 1%, the third straight month-over-month decline.

The national rent index for one- and two-bedrooms increased again in May at the fastest pace recorded in almost two years, according to a report.

Apartment prices jumped nationally by 1.2% in May, according to the latest rent report from real-estate site Zumper. That is the first time monthly growth rates of over 1% were recorded in 20 months.

Zumper noted that the going rate for one-bedroom apartments in May settled at $1,504 while the rate for the two-bedroom apartments settled at $1,865. The one-bedroom apartment costs the same as it did in May 2023 while the rate for the two-bedroom apartment is 0.5% more expensive than a year ago.

"May marks the first time we've seen national monthly growth rates of over 1% since October 2022," Zumper CEO Anthemos Georgiades said in the report. "This notable rise in rent coupled with the current persisting inflation suggests that there will be even more pressure put on the CPI in the coming months and rate cuts by the Fed may be pushed back further than previously anticipated."

Where Are Rent Prices the Highest and Lowest?

On an annual basis, rent prices fell the most in California. Seven of 11 Californian cities reported declines in annual rent prices. Oakland led the pack with a 9.1% decrease in rent prices. It was followed by Sacramento (-8.1%), Los Angeles (-5.0%), San Jose (-2.3%), San Francisco (-1.7%), San Diego (-1.3%), and Long Beach (-1.1%).

On the other hand, Syracuse, New York, and Columbus, Ohio, have the largest annual rent price growth rates in the country. Syracuse saw the going rates for one-bedroom apartment units jump by 28.6%. Columbus' rent climbed by 22.5%.

Part of the reason why rent prices in Syracuse increased includes its recent population growth, Zumper noted. The city is home to a large national university. Many homes in the city are also owned.

Despite recording the biggest increases in prices, New York City remains the metro area with the most expensive rent for one-bedroom apartments, which was at $4,200 in May. The city also has the highest rent for two-bedroom apartments, with the rental price at $4,730 as of last month.