Rents fall annually for the first time in 3 years

The Hill ^ | 04/14/2023 | ADAM BARNES

[ChicagoConservative27]

Rents fell annually for the first time in three years last month, reaching the lowest median asking rent in more than a year, according to data released Friday by real estate brokerage Redfin.

Median asking rents dropped 0.4 percent year over year to $1,937 in March — marking the first annual decline since the beginning of the pandemic in 2020. The median asking rent rose more than 17 percent between 2021 and 2022.

Redfin analyzed rent prices from Rent., an apartment rental listing website, across the 50 largest U.S. metros, using data from more than 20,000 apartment buildings nationwide.

Redfin’s report attributes the annual decline to a boom multi-family housing construction, with the number of units completed hitting a three-decade high.

Austin, Texas, once a red-hot market during the pandemic, saw the largest annual decline in median asking rents at 11.2 percent. And in Chicago, asking prices dropped by more than 9 percent.

[ChicagoConservative27]

Newer apartments are going for 2,500 for a two bedroom. This is complete garbage.

Plus the village I live in is building a affordable housing 5 story building. Projects coming to the burbs. I am not happy.

[ProtectOurFreedom]

It sure isn't the case here in Santa Clara County, CA (Silicon Valley). Our county lost 15,000 residents last year (out of 1.8 million people). Look at rents this year vs. last year...

[MTBobcat]

Renting after moving to Montana last year and it went up $200/month in December.

[George from New England]

For the first time in a long time I am not getting any bites on my rentals. I have two in the country. 33523

[ConservativeInPA]

Wow, the Biden stenographers at The Hill are so positive. Things must be getting much better.

[fwdude]

Lying statistics. It depends on how you ask the questions.

[CatOwner]

Our kid purchased a home in late 2021. Their mortgage plus property taxes (not trivial in Texas) was right about where the rent was for their two bedroom apartment at the time. Apartment rents were, and remain, ridiculous in our area.

Since the purchase, the rent on their previous apartment has increased much more than the property taxes. And unlike rents, a portion of that mortgage payment is paying down the principal. With a 3% mortgage, about 40% of their mortgage payment is going to principal.

[ducttape45]

I am retiring next week, and I’ve yet to find a decent senior living community that I can afford. Most are too expensive, they want 30% of your income, I will make too much money on my retirement income (?????) or they are all full.

[Myrddin]

My property taxes went up last year. I didn't raise the rent on my rental property. It cost me net taxable income on the Form C. IRS said the "fair market rent" was about $50/month higher than I'm charging. My tenants pay on time. I know they are struggling because I got a pending electrical service disconnect notice on the rental property as a courtesy notice from the power company.

My income strategy with the rental property is to generate enough income to pay property taxes on both the rental and my primary residence with some reserve to cover maintenance. It is working thus far.

[AlaskaErik]

[bgill]

Someone is playing with the numbers.

[bgill]

A friend’s small 1960s house, outside Austin, TX sold for 1.5M a few months ago. Originally was a cabin but with the addition is now 3 bed, 2 bath with the washer/dryer crowded into one, a little two stool kitchen island, a garage that’s too small for today’s cars, and property tax out the wazzoo. Property tax is allowed to be raised 10% each year and by golly, it is no matter what the economy is doing.