US rental market finally starting to show signs of cooling off

 The madness is finally signaling it’s beginning to ebb. 

America’s out-of-control rental prices appear to at last be slowing down. 

Following an ongoing period of bidding wars for basic apartments, median prices reaching all-time-highs and hourlong lines to see tiny units, a new era may soon be dawning, according to data from real estate company Zumper. 

According to the firm, the median national rent for a two-bedroom fell 2.9 percent this June, the “most significant drop we’ve seen since pre-pandemic times” Zumper spokeswoman Crystal Chen told Bloomberg. 

In other hopeful real estate factoids, Zumper also found that in June the median national rent for a one-bedroom rose just 0.5 from its May median, a small solace but still something seeing as how the one-median on a one-bedroom has surged 11.4 percent over the past year. The data points also come in the summer, when rent prices typically peak. 

The cold comfort of the data report is a sign that tenants can’t keep up with the eye-watering price tags landlords are asking for, especially amid so much inflation, economic chaos and instability. Rising mortgage rates are also not helping landlords or home sellers. 

The next few months likely won’t see increases on the same level as the last year’s, analysts say.

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“Renters are sending a clear message to property owners that they’re not able to pay sky-high rents, and they anticipate a recession,” said Chen, adding that the financial issues have helped create “pockets of opportunity for renters who’ve been looking to buy a home for years.” 

Across the country, Zumper found that Miami’s one- and two-bedroom market cooled off the most last month, followed by San Diego, Fort Lauderdale and Anaheim, California.

New York maintained its dubious title of most expensive place for renters, followed by San Francisco — indeed, NYC one-bedroom rents were up 40 percent year-over-year this June. 

While Zumper doesn’t see a downturn in the near future, the next few months likely won’t see increases anywhere close to those of the past year. “We likely won’t see a significant decrease in prices since we’re still facing a housing shortage and the labor market remains strong,” said Chen, Bloomberg reported.

https://nypost.com/2022/07/08/us-rental-market-finally-starting-to-show-signs-of-cooling-off/