The cost to rent out a room jumped 23% last year as inflation hit homeowners, according to Roommates.com data.
In January 2022, the average cost of a room for rent in the US was $775. By December 2022, it jumped to $955, and that's climbed another 2.3% in 2023, the report said. However, the data show that most of the cost increases happened in the first half of last year. The climb leveled off in the second half and was relatively flat in January. The runup came amid a tight housing market as homeowners grew reluctant to give up low mortgage rates, while prospective buyers balked at the steep surge in rates.
Meanwhile, the overal rental market has cooled off lately. On Monday, the median asking monthly rent in the 50 largest US metro areas dipped 0.5% in May year over year to $1,739 though it was up $3 from the prior month."In May, we saw the first year-over-year decline in rents, a sea-change from the double-digit growth that renters contended with in much of 2021 and 2022.
The revision noted that more apartments are coming to the market, which will ease rental shortages. And with many homeowners unwilling to refinance mortgages they locked in at lower rates before, that could make them more inclined to rent out their properties.
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