Home News Rents are starting to come down, but the trend may not hold

Rents are starting to come down, but the trend may not hold

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New York (AP) — rent is in starting to rain After spiking to record levels last summerbut experts aren’t sure if the slowdown will continue.

Christopher Meyer, a real estate professor at Columbia Business School, says people looking for an apartment now may have a better experience than they did in May or June.

“We don’t see rents rising that quickly. The rental market is softening a bit,” he said.

Nationwide, median asking rents increased 14% in July compared to July the previous year, the smallest annual increase since November 2021, according to a new report from . redfinThe percentage is still high, but down from 15% in June and 16% in May.

Experts say the market could slow further towards the end of the year, but there are still many uncertainties.

Bryan Carberry, senior managing editor at Redfin-owned apartment search website Rent.com, said:

A lot depends on where you live. Florida cities such as Boca Raton and West Palm Beach saw rent declines of -0.1% and -0.5% respectively. compared to last month. But rents in coastal California cities like San Diego have continued to climb over the past year, according to Apartment List.

Rent in Rochester, New York rose 15.3% in August compared to the same month last year, according to Apartment List data. The average two-bedroom apartment in the Rochester area was $1,318 in August, compared with $1,116 a year ago.

Bank of America Chief Executive Brian Moynihan said high rents were a concern because they could make up a large portion of a household’s take-home income.

“Gas prices are down again, but rents are up 10, 12, 15 percent. rice field. In a recent Associated Press interview.

Things look a little better for renters than they did a few months ago, but it’s still a landlord’s market, Mayer said.

If your lease is expiring, continuing to negotiate with landlords may be a better option than trying to move, at least until the rental market slows further, according to an industry survey from the National Association of Apartments and said Paula Munger, Vice President of Analytics. .

“When you renew your lease, you never pay as much as someone new moves in,” says Munger. “If possible, please stay in your apartment.”

The main reason for the surge in rents is increased demand from people who have been discounted from the booming housing market. That market is starting to slow, which could mean more people can afford to buy and don’t have to rent, but with interest rates rising, some people don’t want to take out a mortgage. There may be

“Right now, there’s a lot of inflation going on across the market, and there’s not enough supply, so prices are going up,” Munger said. “That’s the downside for people. It’s that they don’t have enough choices and choices about what they want in a housing unit.”

That was the experience of 22-year-old Los Angeles resident Erika Tascon, who lived with a roommate but wanted to find an apartment with her boyfriend.

After visiting over a dozen homes, the couple chose a 500-square-foot, one-bedroom apartment in Beverly Hills, paying $2,750 a month. The median rent for a one-bedroom in the area is his $2,773, up 14% from last year, according to Zumper data.

“I think the landlord is taking tenants now,” said Tuscon, who is paying $200 more a month than his previous apartment.

In Britni Eseller’s case, demand was so high that she had to fill out an application in a rush to beat 10 other people touring her desired apartment.

“Everyone is in scarcity mode, so I’m happy to find a place that’s somewhat affordable. Unfortunately, I’m okay with seeing chipped floors and broken appliances,” says Essler, who lives in North Park near Sun. said. Diego.

Developers are building more condominiums this year, which could ultimately help ease the crisis.

Meanwhile, high rents have disproportionately affected low-income residents across the country, according to Ben Martin, research director of Texas Housers, a nonprofit that works on housing justice. It is said that he is giving a blow.

Dallas and Fort Worth Rental Prices in May 21.6% increase Since last year, according to Redfin data. In Austin he was up 48.4%. One of the main reasons is that high-income people from coastal areas like California and New York have moved to Texas during the coronavirus pandemic, realizing they can work remotely and live cheaper.For example, last December Tesla moves headquarters From Silicon Valley to Austin.

“Those with the lowest incomes are paying more than the total money pie,” Martin said. “That means we don’t have the money to buy school supplies, groceries, gas, clothes, and everything else we need.”

In addition to lowering basic costs, renters are packing more people into their apartments, Martin said.

more and more, people can’t afford to buy a house at all And now facing eviction. The government has ended moratoriums on evictions and rental assistance programs that allow people to stay home during the pandemic.

eviction labPrinceton University research institute sees record number of evictions above pre-pandemic levels

in houstonAccording to The Eviction Lab, with the eviction moratorium ending in July 2021, there were 7,242 eviction applications in July this year, 51% above average.other cities such as Los Angeles The eviction moratorium has been extended until the end of the year.

Unable to raise rents or move, tenants are often forced to choose between paying rent and providing for basic necessities. Since the eviction remains on the tenant’s record, difficult to find housing future.

“The threat of eviction is a looming problem,” says Nick Graetz, a postdoctoral researcher at The Eviction Lab. “Part of the reason renters are sacrificing so many other things in trying to pay exorbitant rent each month is because of the constant threat of being evicted from their homes.”

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The Associated Press receives support from the Charles Schwab Foundation for educational and descriptive reports to improve financial literacy. An independent foundation is separate from Charles Schwab and Co. Inc. AP is solely responsible for its journalism.

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