Hey there! Good news for renters – rental prices in the U.S. are on the decline! According to a recent study by rental platform Zumper, there has been a decrease in rental rates across the country. In fact, one-bedroom rentals have seen a 0.4 percent decrease from last month, while two-bedroom rentals are down 0.2 percent. Although the prices are still higher compared to 2022, experts predict that rents will continue to dip in the upcoming months. Some cities are already experiencing significant drops in rent, with Augusta, GA leading the charge with a whopping 15.2 percent decrease. So, if you're in the market for a new place, now might be the perfect time to snag a great deal!
These 10 U.S. Cities Are Seeing the Fastest Decreases in Rent
A study of yearly rental prices has shown that rates seem to be decreasing across the country. The average price for one bedroom ($1,505) is down 0.4 percent from last month, while two bedroom rentals ($1,862) are down 0.2 percent. Though these prices are still above 2022 levels, experts say rents across the United States will significantly dip in the coming months.
The report, conducted by rental platform Zumper, found that some states are already seeing huge dips, with rents significantly lower than they were this time last year. Augusta, GA saw the biggest decrease by far, with a 15.2 percent drop. The average rent there for a one-bedroom is just $840 per month. Lincoln, NE was a close second, with a decrease of 14.4 percent and a monthly rate of $770.
“In normal economic circumstances, rent prices typically increase each year when compared to the same month in the previous year,” Marissa Mastellone, a representative for Zumper, told Men's Journal. The only time we've seen one-bedroom prices drop year-over-year was during the first year of the pandemic.”
Augusta, GA
-15.2 percent
Augusta, GA has experienced the most significant decrease in rental prices among the 10 cities included in the study. With a 15.2 percent drop, the average rent for a one-bedroom apartment is now just $840 per month. This decrease is a positive sign for renters in Augusta, as it offers the opportunity for more affordable housing options and reduced financial burden.
Lincoln, NE
-14.4 percent
Following closely behind Augusta, GA, Lincoln, NE has seen a decrease of 14.4 percent in rental prices. The average monthly rate for a one-bedroom apartment in Lincoln is now $770. This decline in rent provides potential renters in the city with more affordable options and the chance to save money on housing expenses.
St. Louis, MO
-13 percent
St. Louis, MO is another city that has experienced a significant decrease in rental prices. With a drop of 13 percent, the average rent for a one-bedroom apartment in St. Louis has become more affordable for residents. This decrease in rent can positively impact the financial well-being of tenants and potentially attract more people to the area.
Fresno, CA
-12 percent
Fresno, CA is among the cities that have seen a 12 percent decrease in rental prices. The average monthly rate for a one-bedroom apartment in Fresno has become more affordable due to this decline. This change can be beneficial for renters in Fresno, as it provides them with more affordable housing options and the chance to allocate their income towards other expenses or savings.
Greensboro, NC
-12 percent
Greensboro, NC also experienced a drop of 12 percent in rental prices. This decrease in monthly rent for a one-bedroom apartment in Greensboro offers residents the opportunity to find more affordable housing options. The affordability of rent in the city may also attract individuals who are looking for budget-friendly living situations and potentially boost the local economy.
San Antonio, TX
-11.1 percent
In San Antonio, TX, rental prices have seen a decrease of 11.1 percent. This decline in rent opens up the possibility for more affordable housing options for residents of the city. Individuals who may have struggled with high rental costs can now find relief with the lower average monthly rate for a one-bedroom apartment in San Antonio.
Winston-Salem, NC
-10.8 percent
Winston-Salem, NC is another city that has experienced a significant decrease in rental prices. With a drop of 10.8 percent, the average rent for a one-bedroom apartment in Winston-Salem has become more affordable. This decrease in rent can provide relief for residents of the city and potentially attract more individuals to consider making Winston-Salem their home.
Henderson, NV
-8.9 percent
Henderson, NV has seen a decrease of 8.9 percent in rental prices. This decline in rent can make Henderson a more attractive option for individuals looking to relocate or find more affordable housing options. The average monthly rate for a one-bedroom apartment has become more affordable, allowing renters in Henderson to allocate their funds towards other expenses or savings.
Irving, TX
-8.6 percent
Irving, TX has experienced a drop in rental prices of 8.6 percent. This decrease in rent can positively impact the financial well-being of residents in Irving, as it offers more affordable housing options. The lower average monthly rate for a one-bedroom apartment allows individuals to save money or allocate their income towards other expenses.
Sacramento, CA
-8.2 percent
Sacramento, CA is one of the cities that has seen an 8.2 percent decrease in rental prices. The more affordable rent in Sacramento can benefit renters in the area, providing them with the chance to find housing that fits within their budget. This decline in rental costs can also attract individuals looking for budget-friendly living options to consider Sacramento as a place to call home.
Anthemos Georgiades, Zumper's CEO, says the fluctuation in price is due to the higher volume of options available to sellers, and the ease with which properties are now accessible via digital platforms. It's made buyers choosier, and so landlords have lowered prices to bait them in.
The report also found that rents declined quickest in cities which attracted many new residents during the pandemic, such as Miami, Phoenix, and Austin. Those same people are now moving out, leaving the real estate market in flux.
“If the current pattern continues, we'll likely see negative year-over-year growth by the end of winter,” Georgiades explained in a quote provided to Men's Journal. “Demand remains soft while a record amount of supply is hitting the market, creating a lot of uncertainty and distress throughout the real estate industry—especially for companies and individuals that invested heavily in multifamily developments over the last five years.”
Source: https://www.mensjournal.com/news/10-american-cities-fastest-decreasing-rent