Rental costs are falling and availability is improving nationwide, which is good news for renters. Zumper’s top 100 rental markets had lower rentals in half of the cities since last year.
Renters enjoy their coffee in the morning. (Source: GoBanking Rates)
Renters Rejoice as Rental Options Expand
As inflation falls, migrations decrease, and a record number of multifamily buildings open, renters are less stressed than a year ago. The business noted in the November National Rent Report that they have more options and less competition, and prices continue to decrease in many locations. During winter and the holidays, many people may not consider moving. But much industry wisdom advises that now is the perfect time to find a nice rental, especially at a terrific price. Alexandra Both, RentCafe research analyst and real estate journalist, says supply and demand dictate rent pricing. “Simply put, it’s all about how many people want to rent in that particular place versus the number of existing apartments plus the units being built,” Both said.
Most moves occur in spring and summer due to graduating students, new jobs, better climates, and other considerations. Apartment List reports that winter apartment searches are lowest, then rise to a peak in July. Only 6% of moves occur in November and December, per Hire A Helper. Landlords feel minimal demand during this time. Inflation has also driven rents up in the past year. Due to inflation, landlords may raise rents to meet higher maintenance, property taxes, insurance, and utilities costs. Soaring inflation usually raises rents, both said. Many analysts attribute the softening to a normalization tendency after high inflation and COVID-19 pandemic price spikes, but seasonality is more predictable. Apartment List reports that off-season rents dropped 1.7% nationally from July to December and January. The Zumper national median price for a 1-bedroom apartment in winter was $1,499.
“Traditionally, winter is the best time to find an apartment deal,” said Zumper spokesman Crystal Chen. The winter rental market is less competitive than the rest of the year because renters postpone apartment seeking around the holidays due to the difficulty of moving in cold, uncertain weather while managing travel arrangements. Property owners also lower prices before the holidays to fill vacancies faster. Fall and winter are ideal times to get move-in discounts like free months of rent, parking, and other amenities. Rental costs also drop. In November, Zillow revealed that 30% of its rental listings offered greater concessions than in the preceding two years to attract new tenants. This year, 43 of the 50 largest markets have more concessions or move-in discounts than the previous year. Zumper listed 10,000 buildings with rent offers in November, up 17% since June. For such deals, Zillow recommends cities and neighborhoods with high multi-family buildings. Salt Lake City, San Jose, Washington, D.C., Charlotte, North Carolina, and Minneapolis topped their list, with half of their listings offering concession deals. Winter also lowers moving company demand, resulting in lower rates and improved availability.
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