Are rent prices cooling off?

During the last year, rental prices have been reaching all-time highs, but will they slow down? A new rent price report from apartment search site Abodo says that rental rates nationwide are stabilizing.

The monthly report, released Thursday, showed that median prices for one-bedroom units throughout the U.S. fell a “statistically insignificant” .08% from October to November this year. The median price for two-bedrooms fell .24%, according to the report.

(Image courtesy of Abodo; click to enlarge)

The city that saw the highest increase in prices for one-bedroom units is Boulder, Colorado, which saw a 7.9% increase in prices, from $1,641 to $1,771. The city with the largest decrease? Columbus, Ohio, with a 7.5% drop in rent prices.

As far as two-bedroom units go, the rent market of Scottsdale, Arizona, led with a 6.2% increase; city’s a median rent was $2,676. The market that saw the largest decline? Cleveland, with a 11.8% loss for November, saw rent drop to $751 from $851, according to the report.

Abodo added that it sees this deflating trend for rents increasing through December and the end of the year.

From the report:

As we had mentioned last month, we thought that rents, though they might fall, would not drop dramatically in November and this has verified. While a few cities showed significant swings, November was basically flat, and we see that trend continuing into December.

We are concerned that higher interest rates may negatively affect home sales and therefore strengthen the rental market. On the other hand, we have begun to see stock market volatility, and historically a stock market decline predicts a future recession. With competing factors at work, however, we still feel that December will not show broad national average median rent changes.

Article source: https://www.housingwire.com/articles/47296-are-rent-prices-cooling-off

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