Bloomberg News reports that the rental markets in a few of the hottest cities in the United States indicate that it is on the way to cooling down. After escalating by around 11.4% over the last year, the median national rent in the case of an apartment with one room surged by just 0.5% in June compared to what it was one month earlier. At the same time, the median rent for a two=bedroom apartment slid by 2.9%, per data from Zumper, the rental marketplace.
More on rental market’s price fall
The drop in price for the two-bedroom apartment is the most noteworthy drop observed since the pre-pandemic levels. This was revealed by Crystal Chen, who is a spokesperson for Zumper. The tenants are sending clear indications to the homeowners or the property owners that they will not be able to make payments for such high-rented premises and that a recession is being anticipated.
After Pandemic Gains, the Rental Markets Cool Down
The median rent in the case of a two-bedroom apartment was the steepest of all declines since the time before the pandemic struck.
Bloomberg News reports that during the summer months, there is a surge in rents, almost reaching the peak. However, due to the anticipated impending recession coupled with inflation, which is the highest in the last four decades, the Americans are a little apprehensive about reconsidering their preferences as far as living setup is concerned, even if that means they must compromise on space and locality.
Due to the increasing mortgage rates, many homeowners are slashing the price of listings, creating opportunities for renters who have been longing to buy a dream home of their own for years. This further contributes to the decline in the two-bedroom apartments, as stated by Zumper.
The month-over-month rent drop was the most prominent in a few of the Sun Belt locations. In these cities, the sharpest gain was recorded in these cities over the last few years. In Miami it attracted many remote workers from New York during the pandemic. The rent for two-bedroom apartments had dropped by 6%. The median rent in San Diego for a one-bedroom apartment slid by 6.1%, and Fort Lauderdale, Florida, witnessed a drop in rent by almost 6% in case of the sizes for both types of apartments.
Bloomberg News reports that New York City remains the most expensive haven for renters. Here the cost of one-bedroom apartments costs $600 more every month compared to San Francisco, the next most expensive city after New York. Renters in New York might find relief that the price for a one-bedroom apartment increased by just 0.3% in June compared to May, but in terms of year-on-year, it was still a 40% escalation.
