Renters, Rejoice: The Market May Be Shifting in Your Favor
As of December, the median asking rent price in the U.S. has decreased by 0.5% or $8 from November, according to Realtor.com. This marks a 1.1% decrease or $18 from a year ago and a 3.7% decline from peak highs in July 2022. Experts are calling it a “renter’s market,” with rental affordability improving due to a “construction boom” of new apartment buildings during the pandemic.
The increased supply of new units has led to property managers considering lowering their asking prices to attract tenants. This means renters should have more negotiating power when it comes to lease terms. According to Daryl Fairweather, chief economist at Redfin, “We’re calling it a renter’s market. We think that’s going to continue for the next year.”
However, the volume of newly built apartments is concentrated in some areas more than others, making rent prices decline faster in certain parts of the country. For example, Austin, Texas, saw a 17.6% decline in median rent from a year prior, making it a more affordable option.
If you’re a renter, here are three key steps to consider:
1. Research the market: Compare what other units in your neighborhood are renting for to determine if your rent should be adjusted.
2. Negotiate fees: Consider any additional fees you pay for amenities and try to negotiate a better deal.
3. Consider sharing a larger unit: If you’re living in an area with high rent prices, consider finding roommates or housemates to split the cost of a larger unit.
By taking these steps, you may be able to leverage the current market to secure a better deal on your rent.
