Rents Take a Plunge, Zillow Finds

Rents posted a decline in November, an indication that inflation could be slowing. The 0.4% drop reported by Zillow was the largest month-to-month decline since the company began monitoring rents in 2015, Axios reports. Rents are still running above pre-pandemic levels, averaging $2,008 per month nationally. Because of the way rent prices are measured, the drops won't be reflected in the federal government's Consumer Price Index for a while. Fed Chair Jerome Powell said Wednesday that inflation statistics for rent probably will "come down sometime next year."

A big reason for the change could be that rents sort of maxed out, and many people can't pay that much—especially when other prices are climbing. People are "doubling up with roommates or family," instead of paying ever-higher rents, per Zillow. The steepest drop found was in Raleigh, North Carolina, at 1.3%. (More rent stories.)