Key points:
- The median asking rent dropped by 0.8% year over year in the last month of 2023. Redfin, you know, that real estate guru we all love, provided the shocking news.
- This great fall, much like Humpty Dumpty, was due to an oversupply. Apparently, there are more houses than people to live in them now. Is that like, ‘All dressed up and nowhere to go’ for houses?
- Not just one city, but multiple cities reported a fall in rents. The pandemic-weary landlords seem to think they’re running a charity, not a business. Who knew they had so much heart!
- In sharp contrast, a few high-flying cities like Phoenix and Las Vegas managed to defy the trend. I wouldn’t turn down a chance to live in Vegas, the city of fortune! So, renters, get ready to pawn everything except your soul.
Hot Take:
Mamma always said, ‘Never get involved with anything that could get cheaper.’ Well, it seems like Mamma was wrong about the housing market this time! It’s a renter’s ballgame, my friends, as the real estate market takes a swan dive, with falling rents across various cities. Funnily enough, it’s the ‘oversupply’ at the root of it all. Kind of like that time when I bought 60 rolls of toilet paper at the start of the pandemic, and now my bathroom is more paper than porcelain! On the other hand, cities like Phoenix and Vegas, with their swanky amenities and nightlife, continue to make us pay through the nose. Guess what? If you want to live the high life, you gotta pay the high price. Literally!
Conclusion:
While falling rents generally signal a great time for tenants to move, relocate, or simply upgrade to a nicer place that doesn’t leak every time it rains, it also gives landlords a chill, forcing them to be more ‘flexible’ – not the morning yoga type. So, whether you’re a renter overjoyed at the prospect of saving a few bucks or a scorned landlord, just remember – it’s all cyclical, like my dieting attempts after every Christmas! Just be patient, as the tides of the real estate seas will surely turn again.
Original article: https://www.inman.com/2024/01/09/rent-falls-for-3rd-straight-month-thanks-to-new-inventory/