According to a Zumper analysis published on Thursday, markets in Tennessee, Texas and Louisiana have experienced the largest rent declines since March.

Although unemployment claims have dipped from April’s record highs, nearly 20 million Americans are still jobless, meaning the need for affordable housing is more crucial than ever. According to Zumper’s latest market analysis published on Wednesday, renters across the nation are experiencing a much-needed reprieve from growing rent prices.

From March 15 to June 15, markets in California, Louisiana, Pennsylvania, Utah, Tennessee and Texas experienced rent declines ranging from 5 to 10 percent. Laredo, Texas had the largest rent drop, clocking in at 10.29 percent. On the other end, Nashville experienced a decline of 4.94 percent since March.

“According to the most recent unemployment numbers from the U.S. Bureau of Labor and Statistics, nearly all of the states that encompass these 10 cities had high unemployment rates between 11-16 percent, with the exception of Utah at just under 9 percent,” the report read.

Outside of weakening demand due to fears about moving during a pandemic, Zumper noted the price drops in San Jose and San Francisco are, in part, influenced by the shift to remote working.

“On the West Coast, two pricey California cities experienced pandemic pricing with San Jose and San Francisco one-bedroom rents down 8.1 percent and 5.3 percent, respectively,” the report explained. “San Jose ranks as the fourth priciest market, while San Francisco is the most expensive city in the nation.”

“As people are increasingly working from home, they are prioritizing space and comfort over big-city amenities so there has been a demand shift away from some of the most expensive markets and the dips in these two markets really highlights this trend,” it continued.

While renters have been enjoying lower rent prices, homebuyers haven’t received the same price break. According to the Federal Housing Finance Agency’s latest home price index, home prices continued to grow 5.5 percent year-over-year as the pandemic worsened.

Much like their renter counterparts, homebuyers in the South experienced some relief with month-over-month home price declines.

“Two of the usually stronger growth areas, the Mountain and Pacific divisions, were flat over the month but other divisions continued to experience strong price appreciation even with all of the COVID-19 challenges,” Lynn Fisher, FHFA’s deputy director of the division of research and statistics said in a previous Inman article. “Both the New England and South Atlantic regions saw monthly decreases in prices, but all divisions posted positive year-over-year growth of at least 5 percent.”

Email Marian McPherson

rentals
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×