Rents make up an outsized portion of the Consumer Price Index (CPI), and have contributed to decades-high inflation levels this year. Overall, shelter makes up about 32% of the index. However, rents are finally dropping, according to a new report from Realtor.com.
According to the site, median monthly rents fell in October, hitting $1,747 nationally. Median rents were down about $25 a month from September and $47 from their peak in July. While rental prices were still up 4.7% year-over-year, October had the lowest jump in rental prices in 18 months.
Rents went up the most for studio apartments, rising 6.7% from a year ago. They were up 4.5% for one-bedroom apartments, and rose 3.7% for two-bedroom apartments.
However, most landlords plan to increase rents on at least one of their units within the next year, according to Realtor.com. Nearly 70% of renters surveyed are considering moving to cut costs, hoping to save about $200 per month.