Home News Finally, there’s good news for renters in these major U.S. cities

Finally, there’s good news for renters in these major U.S. cities

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(NEXSTAR) – After nearly two years of rent increases, apartment buyers have finally received good news.

Many major US cities saw rental asking prices fall in augustaccording to a report by Apartments.com, which is owned by real estate research group CoStar.

“After 20 consecutive months of positive monthly growth dating back to December 2020, the market eventually witnessed negative asking rent growth for every month in a row from July to August, with July rents fell 0.1%,” said CoStar National Director of Multifamily. Analytics Jay Rivic. “The market situation has completely reversed in 12 months, where demand was well above available units, but now new deliveries are outpacing lackluster demand. increase.”

In terms of percentages, Nashville leads all major cities with a -1.1% decline, followed by Austin and San Francisco.

city August 2022 month-over-month rent growth
nashville -1.1%
Austin -1.0%
San Francisco -0.9%
Las Vegas -0.8%
Raleigh -0.7%
Orlando -0.7%
Denver -0.6%
Seattle -0.6%
phoenix -0.5%
Detroit -0.5%
San Antonio -0.5%
Charlotte -0.4%
Boston -0.4%
Tampa -0.4%
Atlanta -0.4%
(Costar Group)

In terms of value, San Francisco takes the top spot with a $29 discount when it comes to the biggest drop in asking price.

See the full list at CoStar Group website.

That said, the slight recovery in rent spikes wasn’t felt nationwide. Many cities such as St. Louis, San Diego, Columbus, Cleveland, Salt Lake City, Los Angeles and Portland all saw rent increases.

Zoom out to see how much rent has skyrocketed during the pandemic. August rent growth in Orlando (12.8%), Miami (12.4%), Fort Lauderdale (11.1%), Charlotte (10.8%), Salt Lake City (10.5%) and San Diego (10.4%) It was 2 digits. %) and Indianapolis (10.1%), according to CoStar. According to Redfin, the national average asking rent was $2,039 in August, up 11% year-over-year.

Still, the recent slowdown in growth in some cities could be a sign of future stability.

“Rent growth is likely to slow further as the Federal Reserve continues to raise interest rates,” said Taylor Marr, deputy chief economist at Redfin. said in a news release last week. “Rising interest rates affect the rental market because they weaken the purchasing power of the economy as a whole, including renters’ budgets.”

Ma said the increase in new units under construction will also lower rental prices.

“There are nearly 1 million rental units under construction that will hit the market in the coming months and years,” Ma said.

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