Let's run some data from two sources
James Faris
Sep 28, 2023, 2:30 AM PDT
Chris Salviati
Sep 28, 2023, 9:19 AM |
Housing Economist
Apartment List
978.551.0600
Nationwide rents fell another 0.5% in September, accelerating the late-year rent declines that typically hit the rental market at this time of year. Year-over-year rent growth has stabilized at -1.2%, similar to last month.
The slow season is spreading across the country, as 85 of the nation’s 100 largest markets saw rents fall in September.
Some highlights include:
- Rents in Mesa fell 0.7% in September, compared to a 0.5% decrease nationwide.
- Year-over-year rent growth in Mesa now stands at -4.9%, down from +2.3% one year ago.
- Since the start of the COVID-19 pandemic in March 2020, citywide rents have risen a total of 30.7%.
- Today the median rent in Mesa is $1,228 for a one-bedroom unit and $1,417 for a two-bedroom unit. And the citywide apartment vacancy rate stands at 6%, up 0.6 percentage points from this time last year.
Thanks,
Chris Salviati
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MARKET INSIDER
- Apartments are as unaffordable as ever, with millions spending a third of take-home pay on rent.
- However, rapidly receding rent growth is a bright spot for renters, including those waiting to buy.
- Here are 47 real estate markets where rent is lower now than it was in September 2022
Rent remains at astronomical levels across most of the US, even though the growth of monthly payments to landlords has slowed to snail's pace in the last nine months.
- The number of Americans spending at least a third of their income on rent has never been higher, rental platform Zumper recently noted, citing a Harvard study from earlier this summer.
- After looking at fresh data from the firm, it's easy to see why. Zumper found in their monthly rent report published earlier this week that the median cost for a one-bedroom apartment in the US ticked up to $1,511 in September, which is just above the record high set last month.
- The silver lining is that rent growth for a one-bedroom setup rose by just 0.5% year-over-year, which is by far the lowest rate in the last 12 months.
- The same is true for two-bedroom units, as growth in the going rate has also plunged from double-digits last September to nearly nothing.
"Rents are now almost flat year-over-year — something that would've been unimaginable even a year ago," wrote Anthemos Georgiades Zumper's CEO in a statement for the report. "That's partially thanks to new supply coming online in many markets, and it's welcome news for cost-burdened renters."
While renters should be encouraged by lower rent increases after a few years of out-of-control hikes tied to rampant inflation, the US is still dealing with a living affordability crisis.
While renters should be encouraged by lower rent increases after a few years of out-of-control hikes tied to rampant inflation, the US is still dealing with a living affordability crisis.
34. Mesa, Arizona
Year-over-year rent change: -2.9%
Month-over-month rent change: 1.5%
Average rent: $1,320
National rent ranking: 50
Month-over-month rent change: 1.5%
Average rent: $1,320
National rent ranking: 50
Source: Zumper
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