Zillow: Rents for Homes Drop for First Time Since 2012

Renters finally have reason to rejoice: their housing costs dropped last month for the first time in six years.

The median rent for apartments, single-family homes and other residences across the U.S. was $1,440 in September, down 0.2 percent from a year earlier and the first year-over-year decline since July 2012, according to listings website Zillow.

Rents have jumped 14 percent since September 2011, or about 2.3 percent a year.

While the job market -- a key driver for the rents -- is strong, developers may have gotten ahead of themselves, crowding cities with amenity-rich apartment buildings constructed in response to gains that are now disappearing. Now, tenants, especially those in the market for a luxury apartment, are starting to get the upper hand.

“Rents remain high by historic standards, but September’s modest annual decline in rents should ease some of the pressure pushing higher-income renters to buy,” Zillow senior economist Aaron Terrazas said in a statement.

Rents fell in more than half of the 35 largest U.S. markets in September, with the biggest declines in Portland, Oregon, where they dropped 2.7 percent, and Seattle, with a 2.2 percent decrease. Rents jumped the most in Riverside, California, a more-affordable option than Los Angeles for those willing to commute, with a 3 percent increase.