Greetings, and Happy March! There is no denying that the housing and rental markets have been shifting. This month’s newsletter provides a look at the past, as well as some predictions for what’s to come in 2023. But first, a word from our sponsor…
READ: Over the last six months, apartment rent has decreased in every major metropolitan area of the U.S. Cities like Seattle, Boston, and Las Vegas have seen a fall between 6-8%. This is the first time in five years that rent fell every month for six continual months. After a two year steady increase following the pandemic, this is good news for renters. According to The Wall Street Journal, projections from CoStar Group, a leading provider of analytics in real estate, estimate that nearly half a million new apartments will become available this year. With steep mortgage rates, rentals have been in high demand. The combination of low inventory in the housing market, and more choices for renters it will become more difficult for landlords to raise rent. Anyone facing a lease renewal will likely find many options.
WATCH: Have you ever heard the term “rent-burden?” It’s been used to term a household spending 30% or more of their income on rent alone. Watch Travis from Real Estate Mindset give his insight and predictions on where the market stands currently. The data from this Federal Reserve Bank depicts the increase of renting a primary residence in a number of specific metropolitan areas as well as the U.S. average and the Consumer Price Index (CPI) measure of inflation. If you want to read more, Forbes weighs in a little more on the rental housing market.
LISTEN: The On The Market Podcast discusses “a historic amount” of new construction coming on the market in 2023, along with rent predictions and other factors that are causing the housing market to fluctuate. They predict that overall rent prices will stabilize by the end of the year.