Welcome to Your Renter’s Market: Strategies for Saving on Rent in 2023

As we step into 2023, the landscape for renters in the U.S. is transforming in a way that may just work in your favor. If you’re currently leasing a home or apartment—or even if you’re exploring your options—now is the perfect time to reassess your rental agreements and potentially save a pretty penny.

What’s Happening in the Rental Market?

According to a recent report by Realtor.com, the median asking rent price in the U.S. stood at $1,695 in December, a slight dip of 0.5% from November. More excitingly, that’s 1.1% lower than this time last year and a notable 3.7% decline from the peak highs of July 2022. Experts are calling it a "renter’s market," a term that suggests you, the renter, hold more buying power as the market trends downward.

Daryl Fairweather, chief economist at Redfin, highlights that this improvement in rental affordability is largely due to a recent construction boom of new apartment buildings, spurred by pandemic-era developments. What does this mean for you? More availability leads to more options—and potentially more leverage in negotiations.

How to Take Advantage of the Renter’s Market

Every city has a unique rental landscape influenced by local economics and housing supply. To navigate this market effectively, here are three key strategies that will help you secure the best deal possible:

1. Research Comparable Rentals

Knowledge is power, especially when it comes to negotiations. Take the time to compare rent prices for similar properties in your area. Websites like Zillow, Apartments.com, and local real estate listings can give you a clearer picture of where your rent stands.

• Tip: Gather data on properties that have similar square footage, amenities, and locations. If your landlord is proposing an increase in rent, this information can provide a solid argument for keeping your rent unchanged or even negotiating for a lower rate.

2. Negotiate Additional Fees

Rents often come with additional costs, such as parking, pet fees, and access to amenities. Make sure to evaluate these expenses when considering your overall budget.

• Tip: If you find comparable properties that offer lower or waived fees, don’t hesitate to communicate these findings to your landlord. For example, if other apartments offer free parking or reduced fees for amenities like a gym or pool, ask if your landlord can match those terms.

3. Consider Roommates

If you’re in a high-rent area, you might want to think outside the box—literally. Partnering with roommates can significantly reduce your monthly costs.

• Tip: Larger apartments often have rent prices that rise more slowly than smaller units. This means you could find a great deal on a three-bedroom apartment and split the costs among several roommates. Plus, it’s an excellent opportunity to build community and share living expenses.

A Note on Local Market Trends

It’s important to remember that not every area will experience the same rental shifts. For instance, cities like Austin, Texas, where construction is booming, have seen median rent prices drop significantly—falling to $1,394 in December from $1,482 in August and down 17.6% compared to a year prior.

Your ability to negotiate effectively will heavily depend on the unique circumstances of your local rental market. So, always stay informed about trends and changes in your specific area.

Final Thoughts

As we move deeper into 2023, the possibilities for renters are expanding. This is undeniably an excellent opportunity to renegotiate your lease terms, explore new rental options, or even find a quality living arrangement with friends that suits your lifestyle and budget. At Extreme Investor Network, we are committed to providing the insights you need to make savvy financial decisions, whether in your personal life or your housing arrangements.

Harness this "renter’s market" to your advantage and see just how far your negotiating skills can go. Happy renting!

For further insights and advice on personal finance and investing, make sure to check out our other comprehensive guides at Extreme Investor Network. We’ll keep you informed and empowered!