Nationally, cheap rental prices was expected because of the increase of rental properties on the market.
Cheap rental prices continue to tumble nationwide, particularly in places that have seen the largest surges in prices. If you ever are looking for cheap rental places, this report has looked at rents for studios and one-bedroom and two-bedroom apartments, condos, townhomes, and single family homes in 50 of the largest metros. Read more to know.
According to the New York Post, the median rent in the 50 largest metros dropped to 0.6% last August. That is down from $7 from July and $25 from 12 months ago. It was the fourth month in a row of year over year for having cheap rental prices for studios and one and two bedroom properties.
While it there are cheap rental prices, Realtor.com economist Jiayi Xu said that rents are still above the pre-pandemic levels. It was 23.7% more expensive to rent a home last August that it was four years ago. She says that rent affordability is still one of the biggest challenges faced by people – especially low income people.
Builders have been putting up scores of new apartments as those priced out of ownership are renting. Xu says the she expects this trend of cheap rental prices to continue at least until the end of the year.
Here is a list of places where there is cheap rental prices, and where rents have fallen the most:
Nationally, cheap rental prices have dropped most in metropolitan places where rents have spiked during the COVID-19 pandemic. This includes Austin, Phoenix, and many Florida markets.
Places where there are cheap rental prices:
- Austin. At -8% year over year in August.
- Tampa, FL. -5.5%
- Dallas and Raleigh, NC. -5.4%
- Portland, OR. -5.2%
- San Fransisco. -4.9%
- Orlando, FL & Riverside, CA. -4.8%
- Las Vegas. -4.6%
- Phoenix. -4.5%
Stephanie Douglass, co-founder of Open House in Austin, said that sellers have gotten used to fair value homes being inflates, so they were not houng to sell for less that what people got during the frenzy. Instead of lowering prices, sellers have been renting their properties, which has flooded that rental market.
The extra inventory of rental properties have helped cheap rental prices. Size also has played a factor. Prices for two-bedroom units have dipped the most. It has dropped 0.7% year over year in August. One-bedroom have also cheap rental prices as it ticked down to 0.5%; studios notched the smallest reduction of 0.2%.