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In May, rents in large and medium-sized cities across the country continued to decline, falling for four consecutive months on a month on month basis and for seven consecutive years on a year on year basis, and the average price of rents roughly fell back to the level in the first half of 2021.

According to the report recently released by Zhuge Housing Data Research Center, the average listed rent in large and medium-sized cities nationwide in May 2024 will be 34.77 yuan/square meter/month, a month on month decrease of 0.48%, and a month on month decrease of 0.11% from the previous month; It fell 1.96% year on year.

The report points out that since November 2023, rents across the country have generally entered a continuous downward channel, and the distribution of key cities has shown a situation of "more declines and less increases". On the one hand, affected by the economic environment, residents' employment and income expectations are insufficient, and housing consumption is degraded; On the other hand, the relationship between supply and demand in the rental market has also changed. Influenced by factors such as the continuous increase of second-hand housing inventory and the continuous lengthening of transaction cycle, more and more owners choose "resale for rent", and the rent is lack of upward momentum.

In this regard, Zhuge Housing Data Research Center believes that although rent in May is still in a downward trend, the month on month decline has narrowed. In the second half of May, rents rose for two consecutive weeks month on month, showing signs of stabilization. With the arrival of the graduation season in June, the rental demand is further released, and the rent is expected to stabilize.

The year-on-year decline of rents in first tier and second tier cities expanded

From the perspective of city level, the report shows that the average rent in the first tier cities in May 2024 is 84.13 yuan/square meter/month, down 0.3% month on month and 4.83% year on year; The average rent in second tier cities was 30.74 yuan/square meter/month, down 0.72% month on month and 2.21% year on year; The average rent in the third and fourth tier cities was 24.91 yuan/square meter/month, up 0.15% month on month and 3.72% year on year.

The report points out that the observability of the rent trend in the third and fourth tier cities continues to be better than that in the first and second tier cities, maintaining a positive growth trend on a month on month basis, while the year-on-year decline in rent in the first and second tier cities has further expanded. As of this month, the average rent price in the first tier and second tier cities has declined for 11 and 7 consecutive months respectively year on year; The third and fourth tier rose for 9 consecutive months year on year.

In addition, from the perspective of rental housing supply in key first and second tier cities, in May, the rent in first tier cities increased by 3.9% year on year, while that in second tier cities increased by 21.8% year on year. By the end of this month, the source of rental housing in the first tier and second tier cities had increased for 17 consecutive months and 10 consecutive months respectively.

According to the report, the level of rental housing supply is still higher than that of the same period last year, and the competition of housing supply still exists, or it is one of the reasons for the decline of rent.

8 Rent in Chengcheng City fell month on month, with Sanya leading the increase

The report points out that among the 40 large and medium-sized cities in China, the distribution of "more declines and less rises" continues. Among them, the average rent price in 8 cities rose month on month, and most of them were in second tier and third and fourth tier cities.

Specifically, Sanya, Urumqi and Quanzhou were the top three cities with a month on month increase of 1.69%, 1.57% and 0.39% respectively. The month on month increase of rent in Chongqing, Foshan, Guilin, Taiyuan, Zhuhai and other five cities was less than 0.3%.

In terms of the month on month decline of cities, rents in the remaining 32 cities have declined month on month, accounting for 80% of the total, with most of them being hot second and third tier cities. Among them, Wenzhou fell 2.48% month on month, leading the decline in February, with a year-on-year decline of more than 8%; It was followed by Tianjin and Hangzhou, which decreased by 2.22% and 1.83% month on month respectively.

It is worth noting that among the top 10 cities in terms of month on month decline, only Baoding and Jinan still showed year-on-year growth, with year-on-year growth of 0.26% and 0.75% respectively.