Nevada posted the highest decline in apartment rents in the nation, a new report found.The Silver State saw average rents fall year-over-year by 3.8% in November, higher than the 2% decrease seen in the previous month. The report is based on national, state and local data from Rent.com.Nevada was also one of only five states to see rents decline during the same period.Nevada: -3.8 percentMaryland: -1.3 percentIdaho: -1.2 percentGeorgia: -1.2 percentVirginia: -0.1 percentMore:Reno apartment rents decline as vacancies reach highest point since COVID-19 pandemicAverage rents nationwide rose by 7.45 percent to $2,007, according to the report. It is the lowest increase in rents seen over the last 15 months, a sign that the rental market might be moderating. The weakening demand coincided with an increase in people renting larger apartments.
Rents also remain elevated, which likely explains the popularity of bigger units. Rents have skyrocketed in recent years due to spiking median home prices.'The surge in two- and three-bedroom prices coupled with weakened demand across the industry supports evidence that renters are pairing up with roommates or staying with friends, and is indicative of an uncertain mortgage market that continues to push would-be buyers into larger apartments,' the report found.The uncertainty in the mortgage market is expected to continue in 2023, according to real estate firm Redfin. The company also expects rents to fall in 2023 as vacancies increase in markets nationwide.Reno-Sparks is already seeing a decline in average rent after posting record highs multiple times in recent years. The average rent in the Reno-Sparks metro fell by $26 to $1,654 in the third quarter of this year, according to a report from real estate appraisal and consulting firm Johnson Perkins Griffin.
Of Reno-Sparks' 11 submarkets, seven saw rent decreases.Meanwhile, a quarterly report from the U.S. Census Bureau saw the nationwide vacancy rate increase to 6% in the third quarter from 5.6% in the second quarter.Some states are already implementing rent control in response to the elevated rents outpacing inflation in recent years. Florida, Maine and California approved ballot measures in November to control rent hikes while also beefing up tenant rights.For more details, view the full apartment report at Rent.com.