Rent declines overall for first time in 3 years, including rent in metro Atlanta

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A "for rent" sign is posted in front of a house in Richmond, California. (Photo by Justin Sullivan/Getty Images)

ATLANTA - As we all know, the cost of rent and housing rose dramatically in the United States during the COVID-19 pandemic. The residents of metro Atlanta certainly felt the impact, but a new report says that rent is decreasing in Atlanta.

PREVIOUS STORY: Rent costs skyrocket across Georgia with no relief in sight

According to a new report by Redfin, the median asking rent in the United States fell 0.4% year over year to $1,937 in March, making it the lowest median asking rent in 13 months.

By contrast, rents were up 17.5% a year ago in March 2022. Although rents remained unchanged from February, they remained $322 higher, or 19.9% more expensive, than at the start of the pandemic three years earlier.

RENTS DECLINE IN 13 MAJOR CITIES

Austin, TX (-11%)
Chicago, IL (-9.2%)
New Orleans, LA (-3%)
Birmingham, AL (-2.9%)
Cincinnati, OH (-2.9%)
Sacramento, CA (-2.8%)
Las Vegas, NV (-2.4%)
Atlanta, GA (-2.3%)
Phoenix, AZ (-2.1%)
Baltimore, MD (-2%)
Minneapolis, MN (-1.6%)
Houston, TX (-1.5%)
San Antonio, TX (-1.3%)

According to Zumper, the cost for the average one-bedroom apartment in February was $1,744 and the cost for a typical two-bedroom was $2,300.

Redfin's Dan Close, a real estate agent in Chicago, said, "Rents are falling, but it feels more like they're just returning to normal, which is healthy to some degree. It's similar to the cost of eggs. You can say egg prices are plummeting, but what's really happening is they're finally making their way back to the $3 norm instead of $5 or $6. Rents ballooned during the pandemic and are now returning to earth."

According to the report, rents skyrocketed over the last two years due to higher incomes, more millennials starting families, and less people moving because economic uncertainty.

The reason that rent is now declining in some cities is a result of the pandemic home building boom, according to Redfin.

However, there are still some major cities that have seen an increase. They are: