Get All Access for $5/mo

Looking For Lower Rent? Rent Decreased the Most in These 11 U.S. Cities in January While rent prices still increased overall in January, prices only rose by 2%, marking the smallest increase over the past 20 months.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

4kodiak | Getty Images
Phoenix, Arizona downtown skyline

Rent is still rising in some American cities, while signs of a slowing market have already taken hold in others.

While rent still increased in January overall, prices only rose by 2%, marking the smallest increase over the past 20 months, according to data by Redfin. Rent growth is up by 2.4%, but it's drastically lower than the peak of 17.5% in March 2022.

The rental market may be slowing because of waning demand and growing supply, signaling that prices may continue to fall in the coming months.

"We're watching closely to see whether rents start falling year over year. That would be a welcome relief for renters because it hasn't happened since the onset of the pandemic," said Redfin chief economist Daryl Fairweather, in the report. "If rents do start falling on a year-over-year basis, it will mean that renters have more room to negotiate. It may also prompt more landlords to sell their properties because they're no longer getting a good return on their investment."

However, the rental market isn't the same everywhere, and some metro areas saw prices drop considerably, while others still saw rental growth hit new heights. Phoenix, Arizona saw the biggest drop in rent growth with a 6.7% decline. Raleigh, North Carolina takes the prize for the largest increase with rent prices rising by 22.5%.

Related: Rent Prices Could Finally Be Cooling -- But Not in These Cities

Metro areas with the biggest rent decline

  1. Phoenix, AZ (-6.7%)
  2. Oklahoma City, OK (-6.3%)
  3. New Orleans, LA (-5.2%)
  4. Minneapolis, MN (-5.1%)
  5. Houston, TX (-4.9%)
  6. Baltimore, MD (-4.6%)
  7. Birmingham, AL (-3.4%)
  8. Chicago, IL (-3.0%)
  9. Virginia Beach, VA (-1.8%)
  10. Seattle, WA (-1.0%)
  11. Austin, TX (-0.4%)

Metro areas with the biggest rent increase:

  1. Raleigh, NC (22.5%)
  2. Cleveland, OH (17.5%)
  3. Indianapolis, IN (14.9%)
  4. Charlotte, NC (14.2%)
  5. Nashville, TN (9.8%)
  6. Kansas City, MO (8.8%)
  7. Louisville, KY (8.2%)
  8. Milwaukee, WI (7.7%)
  9. Jacksonville, FL (7.5%)
  10. Providence RI (7.3%)

Related: This Is the Most Expensive Rental Zip Code in the U.S. — And It's Not in New York or San Francisco

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

This 20-Year-Old Student Started a Side Hustle With $400 — and It Earned $150,000 Over the Summer

Jacob Shaidle launched his barbecue cleaning business Shaidle Cleaning in 2021 when he was just 15.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Making a Change

Learn a New Language with This Fresh Approach

Read and listen side by side.

Franchise

How California's New Disclosure Law Could Affect Franchise Sales Nationwide

The bipartisan legislation introduces new registration and pre-sale disclosure requirements for third-party franchise sellers, including brokers, broker networks and franchise sales organizations.

Business News

Mark Zuckerberg Is Now the World's Second Richest Person, Behind Elon Musk

Meta's CEO jumped ahead of Jeff Bezos in Bloomberg's rankings this week.