‘Good for renters’, praises economist as rents continue to fall – the three cities with the biggest price drops

THE three American cities with the biggest drops in rent prices over the last year have been revealed by a new study.

Falling rents are a sign of reduced inflation, says a real estate economist.

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While inflation continues to put pressure on the cost of living, there is one part of life that is getting cheaper: rent.

Rents fell an average of 0.7% year-over-year across the country, new data from realtor.com revealed.

That puts $24 back in the average American’s pocket each month.

In some cities, however, the drop in rental prices was significantly more dramatic.

Austin, Texas, is the city that has seen the largest reduction in asking rents.

The modern tech hub saw a 9.3% drop in rental prices last year.

That means the average rent for a studio to two-bedroom apartment is now $1,484, down from $1,641 at the same time last year.

Austin experienced a spike in rents in 2021 as the city welcomed a large influx of new residents.

The Texas city has become known for its vibrant job market, cultural scene and famous new residents like Joe Rogan and Matthew McConaughey.

Second on the list of declining rents is Nashville, Tennessee.

At home Country musicthe median asking rent fell 8.3% compared to the same period last year.

This means the average apartment is now listed at $1,517, compared to $1,618 in 2023.

Similar to Austin, Nashville has enjoyed a post-pandemic boom.

However, rents are now falling to levels that long-time residents are more familiar with.

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In third place is San Antonio, Texas.

The state’s third-largest city saw average rents fall from $1,276 to $1,232.

This represents a drop of 8.2%.

‘GOOD NEWS’

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Realtor.com chief economist Danielle Hale exclusively told The US Sun: “Declining rents are good for renters. But it’s important to put the size of the drops in context.”

She highlights the fact that rents are still much more expensive than they were before the pandemic.

“Even though rents have fallen for 10 consecutive months, the total drop all over the country is small, just 1.4%, and rents have increased almost 22% in the last 5 years.

“Additionally, the size of the decline in rents is slowing, suggesting that rents may stabilize in the next future.”

She added that falling rents have been “an important factor in easing inflation.”

If you’re thinking about buying, check out the top 10 cities with affordable homes.

Or look at the cheapest coastal cities to buy a house.