14 Cities Where Rent Will Decrease in 2016

Photo (cc) by amslerPIX

Good news for renters: The Zillow Rent Forecast for December projects “a big slowdown in rents” over the course of 2016.

The bad news is that this slowdown isn’t enough to negate rental affordability problems.

As Svenja Gudell, Zillow chief economist, says:

“The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years.

However, the situation remains tough on the ground: Rents are still rising, and renters are struggling to keep up.”

As of December, the median rent in the United States had grown by 3.3 percent over the course of 2015, reaching $1,381 per month, according to Zillow.

Over the course of 2016, however, the real estate website expects the median rent to slow to only 1.1 percent by December, reaching $1,396 per month.

Zillow attributes this slowed growth to the supply of rental units catching up with the demand:

After years of struggling to meet rampant demand from renters young and old, apartment developers have ramped up in a number of large U.S. markets. Enough new units have now been brought online to help blunt some of the rental appreciation we’ve been seeing.

The Zillow Rent Forecast includes projections for the 50 largest metropolitan markets in the U.S. Of those 50 areas, Zillow projects the median rent will decrease this year in 14 areas:

  • Indianapolis — 3.6 percent decrease projected in median rent
  • Las Vegas — 1.8 percent decrease
  • Oklahoma City — 1.8 percent
  • Chicago — 1.4 percent
  • Milwaukee — 1.4 percent
  • Richmond, Virginia — 1.3 percent
  • Pittsburgh — 1 percent
  • Baltimore — 0.7 percent
  • St. Louis — 0.7 percent
  • Cleveland — 0.6 percent
  • Memphis, Tennessee — 0.6 percent
  • Philadelphia — 0.5 percent
  • Birmingham, Alabama — 0.4 percent
  • Detroit — 0.4 percent

The 10 cities where Zillow projects the most growth in rent rates are:

  • San Jose, California — 7.8 percent increase projected in median rent
  • Buffalo, New York — 7.4 percent increase
  • San Francisco — 5.9 percent
  • Seattle — 4.5 percent
  • Denver — 4 percent
  • Portland, Oregon — 3.8 percent
  • Miami-Fort Lauderdale — 3.5 percent
  • Austin, Texas — 3.4 percent
  • Sacramento, California — 3.4 percent
  • Louisville, Kentucky — 3.2 percent

How do you expect rent rates to fare in your area this year? Sound off in our Forums. It’s the place where you can speak your mind, explore topics in-depth, and post questions and get answers.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
Never Buy These 12 Things at a Thrift Store
Never Buy These 12 Things at a Thrift Store

Sometimes a great deal is not worth it — or, even worse, is dangerous.

5 Ways Your Phone Can Slash Grocery Costs
5 Ways Your Phone Can Slash Grocery Costs

These free apps and websites can help you get cash back on groceries, shop more efficiently or squeeze the most from the ingredients you have on hand.

10 Cars That Lose the Most Resale Value After 5 Years
10 Cars That Lose the Most Resale Value After 5 Years

Two types of vehicles are especially likely to see steep plunges in value.

3 Bank Accounts With Perks for Customers Age 55 and Older
3 Bank Accounts With Perks for Customers Age 55 and Older

These checking accounts offer exclusive discounts and other perks — including interest — to older customers.

10 Tools You Need for Financial Stability
10 Tools You Need for Financial Stability

Have these tools and accounts in place so you can weather whatever comes your way.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

14 Things That Are ‘Free’ With Medicare
14 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

10 Things You Should Never Do With Bleach
10 Things You Should Never Do With Bleach

Does the pandemic have you reaching for bleach more than ever before? Learn the ins and outs of using this powerful disinfectant.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.