Rent changes should be modest for the rest of 2024 due to the imbalanced relationship between supply and demand, says the rental platform Zumper in its latest National Rent Report.
The report covers 100 cities nationwide, with data aggregated from over 1 million active listings, and includes a National Rent Index for one- and two-bedroom units.
“It seems we are firmly settled into the year of the renter, as people have more options now than in recent memory,” said Zumper CEO Anthemos Georgiades in a release.
“With Class A buildings marketing concessions that include up to three months of free rent, free parking, and waived deposits and application fees, this, in turn, puts pressure on Class B and C buildings to price competitively as well in order to attract tenants.
“As normal seasonality patterns return and the rental market has leveled off from the price spikes seen in the last few years, the national one-bedroom rate is now about $9 cheaper than it was last year. However, even with this cooling, the national one-bedroom rent is still nearly $250 pricier than it was in 2021,” the report says.
Highlights of the rent-changes report
- While the level of new U.S. apartment supply is expected to peak this summer at a 50-year high, demand is still trailing behind – so changes to the national rent rates should continue to be modest for the rest of the year.
- This April, the national rent index continued its trend of stable annual rates with one-bedrooms down 0.6% to $1,486, while two-bedrooms increased 0.1% to $1,843.
- Meanwhile, New York City continues to buck national trends with one-bedroom rent at $4,280, which is up 20% annually and up 50% since pre-pandemic.
- The high annual rates and prices reflect that NYC is bearing the tightest rental vacancy rate since the 1960s, currently at a mere 1.4% (the national rate is 6.6%).
Conclusion
The report says, “Changes to the national rent rates for the rest of the year, and likely into 2025 as well, should remain fairly modest due to the current imbalanced relationship between supply and demand. Even with peak demand in the summer and fall months, the new apartment inventory across the nation – as it will reach a 50-year high over the summer – will keep the overall national rates fairly restrained.”
A full discussion, as well as more from the Zumper CEO, can be found here: https://zumper.com/blog/rental-price-data/
