At Extreme Investor Network, we understand the importance of staying informed about trends in personal finance, especially when it comes to rental markets. The current construction boom in the U.S. has led to a surge in available rental units, resulting in lower rents and attractive incentives for renters.
According to Zillow Group, the completion of more multi-family units in June than in almost 50 years has increased the supply of empty units, prompting landlords to offer rent concessions to attract new renters. These concessions can include discounts, incentives, or perks like free weeks of rent or free parking. In fact, Zillow found that about one-third of landlords across the U.S. offered at least one rent concession in July, up from the previous year.
Additionally, Redfin reported that median asking rent prices for all bedroom counts decreased in July for the first time since 2020. While rents are still high due to price increases during the pandemic, rent growth has now leveled off, which is good news for renters.
Sun Belt states like Florida and Texas have seen significant rent price declines as more newly built apartments have become available. For example, the median asking rent price in Austin, Texas, dropped by 16.9% in July compared to the previous year, while Jacksonville, Florida, experienced a 14.3% decline in the same timeframe.
Wage growth also plays a crucial role in rent costs, as historically, wage growth and rent growth have been closely linked. As the labor market tightens and wage growth slows, there may be further opportunities for renters to find more affordable housing options.
At Extreme Investor Network, we believe that staying informed about these trends can help renters make more informed decisions about their finances. Keep an eye on our website for more personalized insights and strategies for maximizing your financial well-being in the ever-changing rental market landscape.