Renters across the United States may finally have some good news: rental prices may be on the decline in many cities. After years of steady and escalating increases, tenants in some places may finally be getting a break.
According to data from ApartmentList.com, the average rent in the US decreased by 0.7% from January through August of this year. ApartmentList.com also revealed that many cities are seeing greater decreases; Detroit saw a 4.9% decrease in rent since January, and Los Angeles renters saw a 1.6% decrease.
It isn’t only large cities that are experiencing the decreases either. The data revealed that medium-sized cities such as Lancaster, PA are even seeing rent decreases of 1.2%, while less populated cities such as Shreveport, LA are seeing decreases of 2.2% since the beginning of the year.
The cause of the rent decreases is two-fold. The increased availability of rental units, as well as deferments and rent freezes due to the COVID-19 pandemic, are both likely contributors. There has been a higher number of rental properties available than ever before, creating an environment where tenants have more choices and often more negotiating power due to the competitive nature of the market.
In addition, the widespread implementation of rent deferment and even rent waiver programs have made many tenants’ lives easier by taking the financial pressure off of rent payments. There is no telling if these circumstances will continue, which is a good reason for current renters to take advantage of the situation now.
Finally, while certain rents are declining around the country, renters are still advised to do their research and understand the markets they are looking in before looking for a place to live. Not all rents are decreasing in every market, and some hot spots such as Phoenix, AZ and Austin, TX are still seeing significant increases in rental prices.
Ultimately, the evidence revealed by ApartmentList.com paints an encouraging picture for renters who have been charged increasingly high rents over the past few years. With the economic uncertainty of the past several months, the lower rents may be providing some relief to those who need it most.
