Real Estate Report Forecasts Potential Drop in Rent Across Various U.S. Cities Due to Impending ‘Oversupply

The expected housing market glut will lower rents in some U.S. cities. This is good news for renters, but the housing market still drives inflation.

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Rent Prices Dropping in Multiple U.S. Cities, Anticipated to Continue in 2024

Zumper found that 55% of 100 cities’ rents have dropped from the previous year. Despite this small number of cities, the research predicts rents would fall for much of 2024’s first quarter. Zumper found a rise in apartment development in cities across regions.

Zumper CEO Anthemos Georgiades said Denver, Las Vegas, and Salt Lake City will soon have increased vacancy rates, lowering rents. Several Intermountain cities are approaching oversupply, therefore he expects prices to fall faster than normal. Due to their dedication to building multi-family housing, Dallas and Austin may enjoy rent relief even during the pandemic.

According to the survey, this tendency is especially visible in “Zoomtowns,” such as Phoenix and Austin, where many new multi-family projects have opened. In the Midwest, where cities were less remote-friendly, rents remained stable and enticing to people wanting a calmer, cheaper lifestyle.

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New York’s High Costs Amidst Nationwide Rent Decline

This contrasts with East Coast cities like New York, where limited housing space drives up rents and premiums on available units. New York medians for one-bedroom and two-bedroom apartments are $4,100 and $4,800, respectively.

Renters benefit from the predicted rent fall, while the housing market’s overall impact drives the inflation crisis.

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