Published Date 11/21/2022
When was the last time you heard about a trend for landlords to lower rents? Never? Okay. It’s probably more realistic to talk about how increases are abating instead. Realtor.com’s Clare Trapasso talks about how skyrocketing rents may finally be becoming a thing of the past.
“For more than a year, renters have reacted with horror as landlords across the country jacked up monthly rents by previously unthinkable amounts. But finally, rents have begun to drop,” she says, adding that much to the relief of tapped-out tenants, median monthly rents fell a bit in October, hitting $1,747 nationally, according to a recent report. In their rental snapshot, Realtor.com considered apartment complexes, private condos, townhomes, and single-family home rentals. Their report reveals rents were down about $25 a month from September and $47 from their peak in July. And while rental prices were still up 4.7% year over year, October had the lowest jump in rental prices in 18 months.
“The rental market is showing signs of returning to normal,” says Jiayi Xu, a Realtor.com economist. “Renters may start to feel a little bit of relief. Going forward, I think the rent will continue to grow but at a much lower rate.”
It should be pointed out timing-wise that the rental market generally peaks during summer months, when families are trying to secure housing before children start school and college students are trying to lock down housing. Demand typically slows in the fall and winter.
Nearly two-thirds of renters who have lived in their homes for one to two years have seen their rents go up—and just 6% were able to negotiate smaller increases than their landlords initially sought, according to Avail. “The higher rents make it more difficult for many tenants to save up for homeownership,” says Trapasso. “As a result, nearly 70% of renters are considering moving to cut costs. They’re hoping to save about $200 a month.”
The demand for rentals is still off-the-charts crazy, however. Decreased demand to general inflation and to the most motivated buyers and sellers already having secured housing are factors in this, as there is a limit to how much renters can afford to spend each month on things like gas, food, and just about everything else.
Realtor, TBWS
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