February 2025
On the move: The rising tide of rent payments
The zip codes with the lowest rents are seeing the fastest increases, especially in the South and West.
Key takeaways
- According to Bank of America internal data, the total number of people moving has moderated and was down just 1.6% YoY in the fourth quarter (Q4) of 2024, compared to the nearly 27% YoY decline in the previous year. However, the number of people moving in Q4 2024 is still nearly 40% lower than it was four years ago. But some cities are still seeing growth, especially in the Midwest and Sun Belt, although the story across regions remains mixed.
- While rent inflation growth has moderated over the past two years, Bank of America internal data suggests that average rent growth is still accelerating in the least expensive zip codes. It jumped 7.5% YoY in December 2024, a nearly five percentage point increase over the past year.
- Another challenge facing renters: a lack of supply. Residential building permits for multi-unit properties has decreased in all regions except the Midwest in the last several months and is below pre-pandemic levels in the South, Northeast, and West. In our view, this suggests that some people who rent may see little relief in rental costs in the near term.
Read our full analysis for a more in-depth look at these trends.
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