America's Rental Market: Regions with Climbing and Falling Rents



Discover the latest data on rental market trends in America, including regions where rents are on the rise and where they are falling.

A-2

After a prolonged period of decline, rents are beginning to inch back up. According to Redfin, the median asking rent increased by 0.8% in May compared to a year ago, reaching $1,653. This marks the highest level since October 2022 and the second consecutive monthly increase. The recent surge in multifamily construction had caused rents to drop, but with a backlog of apartment buildings still in progress, prices are not expected to skyrocket, as noted by Redfin. While this may not be favorable news for investors, it does benefit individuals in need of rental housing.


America's Rental Market: Regions with Climbing and Falling Rents

Young renters, in particular, continue to drive demand as many opt to stay put rather than face the challenges of the increasingly unaffordable homebuying market. Despite this, rent price growth has been relatively restrained due to the sufficient supply of new apartments meeting demand, even during the peak rental season. This recent uptick pales in comparison to the 17.5% year-over-year increase seen at one point during the pandemic.

Although rents had been on a downward trend prior to the recent uptick, the median asking rent is still just under $50 below the record high set in August 2022. Even with the slower pace of increase, rents remain high. For instance, to afford rent without being considered rent-burdened (spending more than 30% of income on rent), one would need to earn nearly $80,000 annually, compared to less than $60,000 five years ago, according to Zillow.

The America’s rental market presents a stark contrast, with some areas experiencing rent hikes while others see declines. Washington, D.C., saw the largest increase in median asking rent at 11.1% year-over-year, followed by Cincinnati, Chicago, Virginia Beach, and Minneapolis. Conversely, cities in the Sunbelt and other metropolitan areas witnessed declines, with Jacksonville, San Diego, Austin, Seattle, and Phoenix experiencing the most significant drops.

A-3

The Sunbelt's oversupply of apartments, fueled by the influx of pandemic migrants, has contributed to falling rents in the region. However, with the pandemic housing boom fading and vacancies rising, property owners are facing cooling rents. While some industry experts believe this trend is temporary due to the recent construction boom, the future trajectory of rents remains uncertain. It is speculated that rents may rise again in the next two years unless a major recession occurs, as the increase in apartment construction may not be sufficient to offset the surplus of homes.

The America’s rental market is a complex landscape with varying dynamics across different regions. While some areas are experiencing rent increases, others are witnessing declines, reflecting the ongoing shifts in supply and demand. The future direction of rents will depend on a multitude of factors, including economic conditions and construction activity.

America\'s Rental Market: Regions with Climbing and Falling Rents

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone

AD4


Portugal: Extra Taxes for Holiday Rental Property Owners

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Read more

Rental Homes in Switzerland Drop 28% in 2 Years

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Read more

Controlling personal finance and budgeting app

Australia: Unveiling Regional Queensland’s Lucrative Property Investment Potential

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Read more

Real Estate Auction Sales Surge by 50% - Are Risks Worth the Rewards?

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Potential Drop in Mortgage Rates in Spain Brings Good News for Homeowners

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Read more

Foreigners Spend 39% More on Real Estate in Portugal Despite Recent Decline

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Spain House Prices to Rise by Up to 3% by End of 2024

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Read more

Netherlands Rental Housing Supply Dwindles as New Contract Rents Skyrocket

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Read more

Portugal’s Housing Market Sees 18.7% Decline in Sales

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.