{"id":4830,"date":"2023-01-12T06:16:38","date_gmt":"2023-01-12T06:16:38","guid":{"rendered":"https:\/\/imsfund.com\/?p=4830"},"modified":"2023-01-12T06:16:38","modified_gmt":"2023-01-12T06:16:38","slug":"rent-prices-are-falling-every-month-what-happens-now","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/01\/12\/rent-prices-are-falling-every-month-what-happens-now\/","title":{"rendered":"Rent Prices Are Falling Every Month\u2014What Happens Now?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\"><button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Outside of the roller coaster ride the FTX and Terra coins took, I have rarely seen anything quite like the trajectory nationwide rents have taken over the previous year.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Take a look for yourself.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" class=\"wp-image-146296 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022.webp 1000w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022-300x240.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022-768x614.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022.png 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022-300x240.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022-768x614.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-146296 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 2\" alt=\"YoY rent growth by unit 2022\" height=\"800\" width=\"1000\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022.png 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022-300x240.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-growth-by-unit-size-2022-768x614.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>Median Rent Growth Year-Over-Year By Unit Size \u2013 <a href=\"http:\/\/realtor.com\" target=\"_blank\" rel=\"noreferrer noopener\">Realtor.com<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Of course, this is only showing the year-over-year change and not the rents themselves. Rents are still up year-over-year despite the dramatic about-face that occurred around last March. That being said, we have reached an inflection point where rents have started to decline month-over-month in nominal terms as well.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As\u00a0<\/span><em><span data-preserver-spaces=\"true\">Realtor.com<\/span><\/em><span data-preserver-spaces=\"true\">\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/november-2022-rent\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">notes<\/span><\/a><span data-preserver-spaces=\"true\">,<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIn November 2022, the U.S. rental market experienced single-digit growth for the fourth month in a row after ten months of slowing from January\u2019s peak 17.4% growth. The median rent growth across the top 50 metros slowed to 3.4% year-over-year for 0-2 bedroom properties, the lowest growth rate in 19 months.<\/span><strong><span data-preserver-spaces=\"true\">\u00a0The median asking rent was $1,712, down by $22 from last month and $69 from the peak<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0but is still $308 (21.9%) higher than the same time in 2019 (pre-pandemic).\u201d [Emphasis mine]<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And if we were to account for inflation, the decline is even sharper.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" class=\"wp-image-146298 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 3\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY.webp 1000w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY-300x240.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY-768x614.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY.png 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY-300x240.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY-768x614.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-146298 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 3\" alt=\"YoY median rent growth 2022\" height=\"800\" width=\"1000\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY.png 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY-300x240.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/realtor.com-rent-prices-YoY-768x614.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>Median Rent Growth Year-Over-Year Compared With Average Median Rent (2019 \u2013 2023) \u2013 Realtor.com<\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Furthermore, the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/builders-are-getting-frustrated-and-now-theyre-doing-this\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\u201cbuilders strike\u201d<\/span><\/a><span data-preserver-spaces=\"true\">, as I call it, \u201ccould also put off home shopping plans and further increase rental demand.\u201d The supply side also bodes poorly (or bodes well, depending on your perspective) for future rent prices,<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cOn the supply side, the number of for-rent properties may gradually increase as homebuilding activity continues to pivot to multi-family properties. This extra supply in multi-family homes could shift market balance, raising the still-low rental vacancy rate and helping temper recent rent growth driven by the excess demand.\u201d\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">To drive home just how dramatic this shift has been, compare the fastest metro-level rent growth in the top ten cities over the past six months, 12 months, and since the beginning of the pandemic, according to data from\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.apartmentlist.com\/research\/national-rent-data\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">ApartmentList<\/span><\/a><span data-preserver-spaces=\"true\">. It goes from 37% growth since March of 2020 (Tampa) to 7% in the last 12 months (Indianapolis) to 1% in the last six months (Indianapolis).\u00a0<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" class=\"wp-image-146299 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 4\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22.webp 980w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22-300x176.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22-768x450.webp 768w\" sizes=\"(max-width: 980px) 100vw, 980px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22.webp 980w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22-300x176.webp 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22-768x450.webp 768w\" sizes=\"(max-width: 980px) 100vw, 980px\" type=\"image\/webp\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22.webp\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-146299 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 4\" alt=\"fastest metro-level rent growth\" height=\"574\" width=\"980\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22.webp 980w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22-300x176.webp 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/fastest_metro_rent_growth_dec22-768x450.webp 768w\" sizes=\"auto, (max-width: 980px) 100vw, 980px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>Fastest Metro-Level Rent Growth (2020 \u2013 2023) \u2013 <a href=\"http:\/\/apartmentlist.com\" target=\"_blank\" rel=\"noreferrer noopener\">ApartmentList<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">When the fastest-growing metro area is at 1% growth, that should tell you everything you need to know.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For what it\u2019s worth, the worst-performing market over the past six months was Providence, Rhode Island, at -6%. Since March 2020, the worst has been San Francisco at -5%, but that is\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-coming-collapse-of-downtown-office-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mostly due to local factors<\/span><\/a><span data-preserver-spaces=\"true\">. In fact, San Francisco is one of only two markets with negative rent growth since March 2020 and one of only five with less than 10% positive rent growth.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" class=\"wp-image-146301 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 5\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22.webp 980w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22-300x176.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22-768x450.webp 768w\" sizes=\"(max-width: 980px) 100vw, 980px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22.webp 980w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22-300x176.webp 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22-768x450.webp 768w\" sizes=\"(max-width: 980px) 100vw, 980px\" type=\"image\/webp\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22.webp\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-146301 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 5\" alt=\"slowest metro rent growth dec22\" height=\"574\" width=\"980\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22.webp 980w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22-300x176.webp 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/slowest_metro_rent_growth_dec22-768x450.webp 768w\" sizes=\"auto, (max-width: 980px) 100vw, 980px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>Slowest Metro-Level Rent Growth (2020 \u2013 2023) \u2013 ApartmentList<\/em><\/figcaption><\/figure>\n<h2><span data-preserver-spaces=\"true\">Why is This Happening?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">One part of this is just seasonality. Prices and rents both tend to dip a bit in the winter. But this is a much larger dip\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/calculatedrisk.substack.com\/p\/rents-falling-faster-than-seasonality\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">than normal seasonality would predict<\/span><\/a><span data-preserver-spaces=\"true\">. There\u2019s much more to the story than just that.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Before the Fed started jacking up interest rates, real estate prices were skyrocketing\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=ZRsWyBmxXGE\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">due to a variety of factors<\/span><\/a><span data-preserver-spaces=\"true\">, most notably historically low interest rates and the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-did-the-housing-market-get-so-hot\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">large, country-wide housing shortage<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0that came from a decade of insufficient housing construction. That shortfall in supply was then further exacerbated by Covid and lockdown-induced delays.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The housing shortage had the same effect on the rental market as it did on the sales market. However, when rates went up, the \u201csellers strike\u201d began, and new listings fell dramatically. Remember, unlike in 2008, most homeowners today have 30-year fixed loans with low interest rates. There is little incentive to sell.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">So one of the first pieces of advice\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/its-hard-to-buy-in-this-buyers-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">I gave<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0given this new and very odd market was, \u201c[I]f you own your home and need to move for work or other reasons, selling your home is not the way to go.\u201d You really shouldn\u2019t ever sell or refinance a house with an interest rate of 3% or less.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cInstead, it makes more sense to rent out your current home and then rent where you are moving (assuming it doesn\u2019t make sense or is unaffordable to buy there).\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It turns out that a lot of people took this advice or had a similar thought. At the same time that new listings are way down, we have noticed the number of rental listings shoot up in every submarket of the Kansas City metro area we have properties in, both for houses and apartments. It appears to be that way all around the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Furthermore, while rents\u00a0<\/span><em><span data-preserver-spaces=\"true\">on new listings<\/span><\/em><span data-preserver-spaces=\"true\">\u00a0were increasing by over 15% from one year to the next, that was nowhere near the rent increase the average tenant had to pay. As\u00a0<\/span><em><span data-preserver-spaces=\"true\">NPR<\/span><\/em><span data-preserver-spaces=\"true\">\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.npr.org\/2022\/06\/09\/1103919413\/rents-across-u-s-rise-above-2-000-a-month-for-the-first-time-ever\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">pointed out<\/span><\/a><span data-preserver-spaces=\"true\">, \u201cGovernment consumer price data show that the average rent Americans actually pay\u2014not just the change in price for new listings\u2014rose 4.8% over the past year.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The average increase on a lease renewal hasn\u2019t come close to the average increase on a new rental listing. Thus, not surprisingly, many tenants (like homeowners) aren\u2019t moving.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Americans, on the whole, are\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/thehill.com\/homenews\/state-watch\/582904-americans-moving-less-than-ever-before\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">moving less than at any time since 1948<\/span><\/a><span data-preserver-spaces=\"true\">, and according to data from RealPage,<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realpage.com\/asset-optimization\/market-analytics\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\u00a0apartment lease renewals are at 65%<\/span><\/a><span data-preserver-spaces=\"true\">, up almost 10% from just 2019.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With more properties coming to the rental market, that increases competition and puts downward pressure on prices. At the same time, most tenants aren\u2019t paying rent at market rates for new listings six months ago because their lease renewals weren\u2019t keeping up with market increases. Thereby, they don\u2019t have much incentive to move if they are going to have to pay a substantially higher price in order to do so.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Several other trends have also contributed to this state of affairs. For one, many of the construction projects Covid delayed have finally come online, adding additional supply to the market. In addition, inflation and rising housing costs were nearing\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.businessinsider.com\/us-cities-average-rents-higher-than-what-renters-can-afford-2022-3\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the limits of affordability<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0in the middle of 2022. This has hampered rent growth, particularly by convincing more Americans to move in together.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As many as\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2022\/12\/21\/amid-inflation-nearly-1-in-3-adults-get-financial-help-from-parents.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">one-in-three adults<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0rely on their parents for financial support, and many young adults, in particular,\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/thehill.com\/policy\/finance\/3777185-more-adult-children-are-living-with-their-parents-parents-are-not-pleased\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">have taken to moving back in with their parents<\/span><\/a><span data-preserver-spaces=\"true\">. More Americans are also open to renting out a room or portion of their house.\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/homeowners-leveraging-extra-space-for-income\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">A Realtor.com survey<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0found that a full 51% of homeowners were willing to rent out extra space in their homes, a rate that is highest amongst Millennials (67%). Indeed, Americans living with roommates is\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewresearch.org\/fact-tank\/2018\/01\/31\/more-adults-now-share-their-living-space-driven-in-part-by-parents-living-with-their-adult-children\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">an increasingly prevalent trend for years<\/span><\/a><span data-preserver-spaces=\"true\">.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">All of these trends put together are bringing rental prices back down to Earth.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Is Renting Your Property Now a Bad Idea?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">As with\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/this-housing-market-isnt-like-2008-but-you-should-still-be-concerned\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the real estate market in general<\/span><\/a><span data-preserver-spaces=\"true\">, it is highly unlikely that the rental market will collapse. After all, there is still a housing shortage, and new construction is slowing down again because of high rates (at least high by recent standards).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Furthermore, many people who were looking to buy a home are in the process of giving up and looking to rent. As their plans change, that will increase demand and put upward pressure on the market. And again, part of this recent decline is just seasonality, and as we enter the warmer months, the market should heat up again (pun possibly intended, I\u2019m not quite sure), at least to a certain extent.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Rents skyrocketing over the past few years was an aberration, and the fact they are coming back down to Earth may not be great for landlords, but it is better for the country on the whole. While new purchases are made more difficult by higher interest rates, the rental market should stabilize.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">You should not expect rents to be much higher next year than they are now. But I wouldn\u2019t worry too much about being unable to rent your properties.<\/span><\/p>\n<div class=\"is-layout-flow wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container\">\n<h3 class=\"has-text-align-left mt-0\"><strong>On The Market is presented by Fundrise<\/strong><\/h3>\n<figure class=\"wp-block-image size-large is-resized\"><picture decoding=\"async\" class=\"wp-image-142373 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 6\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.webp 1024w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.webp 768w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.webp 1380w\" sizes=\"(max-width: 256px) 100vw, 256px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.png 1380w\" sizes=\"(max-width: 256px) 100vw, 256px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-142373 sp-no-webp\" title=\"Rent Prices Are On The Move\u2014Just Not Where You Might Want Them To Go 6\" alt=\"Fundrise logo horizontal fullcolor black\" height=\"63\" width=\"256\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.png 1380w\" sizes=\"auto, (max-width: 256px) 100vw, 256px\"\/><\/source><\/source><\/picture><\/figure>\n<p class=\"mb-0\" style=\"font-size:16px\"><strong>Fundrise is revolutionizing how you invest in real estate.<\/strong><\/p>\n<p class=\"mt-0 has-slate-600-color has-text-color\" style=\"font-size:16px\">With direct-access to high-quality real estate investments, Fundrise allows you to build, manage, and grow a portfolio at the touch of a button. Combining innovation with expertise, Fundrise maximizes your long-term return potential and has quickly become America\u2019s largest direct-to-investor real estate investing platform.<\/p>\n<p><a href=\"https:\/\/t.sidekickopen84.com\/s3t\/c\/5\/f18dQhb0S7kF8cpngfW16gy-_59hl3kW7_k2841CX6NGN35Qwt3rN_mgW56Jw3w1HcgXpf197v5Y04?te=W3R5hFj26QkH2W4hJTY63T3pkxW3Fbt5S3Cdl5cf49M_4s04&amp;si=8000000019411002&amp;pi=6988e0ed-1aea-4af5-9769-8a0de4675eeb\" the=\"\" market=\"\" blog=\"\" sponsor=\"\" click=\"\" referrer:=\"\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn more about Fundrise<\/a>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/rent-prices-are-moving\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article Outside of the roller coaster ride the FTX and Terra coins took, I have rarely seen anything quite like the trajectory nationwide rents have taken over the previous year. Take a look for yourself. Median Rent Growth Year-Over-Year By Unit Size \u2013 Realtor.com Of course, this is only showing the year-over-year change [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":4831,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/01\/for-rent-sign-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-4830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/4830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=4830"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/4830\/revisions"}],"predecessor-version":[{"id":4832,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/4830\/revisions\/4832"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/4831"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=4830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=4830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=4830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}