Good news for those looking for affordable rent: Rental prices are decreasing, especially in the South. In February, rents decreased in 29 out of the 50 largest cities in the country, as reported by Realtor.com®. That has been a good thing for renters, many of whom experienced significant increases in prices in recent years.
“There is a significant amount of new apartment construction happening in the Southern region.” “According to Realtor.com economist Jiayi Xu, more construction leads to more new supply, resulting in lower prices.” “This means that tenants have more money available for other aspects of their lives, not just for paying housing expenses.”
The Memphis, Tennessee metropolitan area, which has been attractive to investors who buy homes to renovate and rent out, saw the biggest reductions in prices. In February, the average monthly rent decreased by 5% compared to the previous year, reaching a median of $1,251.
- IRS Grants Extra Time for 2024 Taxes to Kentucky’s April Storm Survivors
- Fed’s June Meeting: Rate Cuts Not in the Cards: What’s Next?
- Deadline Alert: Michigan Schools Must Act Fast with Federal Stimulus Funds
- How to Access VA Dependent Education Benefits with a 100% Disability Rating
- Big News for SSDI: Social Security Might Add $600 to Payments
“Properties are not being rented as quickly,” says Pablo Pereyra, the main broker for 901 REALTORS in Memphis. He says that part of the reason for this is that the housing market has stabilized. He also mentions that our rental prices are some of the lowest compared to other large cities in the country.
After Memphis, the next city is Austin, TX, where rents decreased by 4.4%.
According to real estate broker Brad Pauly, who is based in Austin, the decrease in prices is due to the availability of new apartments. Some landlords may need to compete for tenants.
Many apartments have been constructed in recent years, and there are more to come in the future. According to Pauly from Pauly Presley Realty, many properties were bought in the past few years specifically for renting purposes. This has resulted in a significant increase in the number of available rental options.
Austin is still considered a popular place to live and visit. “However, the growth of the population has decreased.” However, rental prices increased in only 16 markets. (There was not enough data available for five out of the 50 largest markets.)
In February, the cost of rent in the New York City metro area increased by 5.4% compared to the previous year, which was the largest increase among all metro areas. The average monthly rent paid by tenants was $2,852, as reported by Realtor.com.
“There isn’t much land available to build new rental properties in New York City,” Xu explains. “The cost of buying a home in that area may be very high, so people tend to stay in their rented properties for a longer period of time.” “This” increases demand, which in turn increases prices.
Also Read: US Top Havens: Here are the Best US States To Call Home in 2024
Where rents fell the most in February?
Memphis, TN
- Median rental price in February: $1,251
- Median price drop year over year: -5%
Austin,TX
- Median rental price in February: $1,530
- Median price drop year over year: -4.4%
Atlanta,GA
- Median rental price in February: $1,613
- Median price drop year over year: -4.1%
Nashville, TN
- Median rental price in February: $1,589
- Median price drop year over year: -4.1%
St. Louis, MO
- Median rental price in February: $1,300
- Median price drop year over year: -3.9%
Leave a Reply