Tenants across the US can breathe from a sigh, at least the time, as rent prices across the country have fallen for the 19th month ”
The media that demands the lease price in the 50 meters the largest dropped to $ 1,691 in February, pouring $ 15 compared to the same time in action, writes the Economist Joel Berner in the Lease Report in February 2025.
Although rents have been gradually reduced over the past year and a half, the bad news is that Americans are still paying much more for shelter than those before the Covid-19 pandemia, when national rent was over 14% lower.
Falling rental rates have been a two -edged sword because they have made the construction of less attractive multifamilic housing for investors in recent years.
According to Berner, this can result in the inventory of the lower rental units to move forward and, in turn, make the rent prices rise.
In 2024, less than 294,000 multifamilic rental units were allowed for construction in 50 largest metros from coast to coast, the lowest number since 2017.
Even at the height of the Pandemia in 2020, there were more allowed units, at 318,000.
“This represents a great attraction in the multifamilian building permit, no doubt the second to the fact that rents were falling year throughout 2024,” Berner says.
According to economists’ forecasts, if the supply of new rental units continues to reduce, as the latest permit figures suggest, the declining trajectory of rent prices may not be held.
“We expect rents to start growing back in the coming years as the peace of new units that hit the market slows down,” Berner warns.
Manhattan rents reach record levels between low supply
New York City in February gained the suspicious honor to have the highest annual rent growth of each meter in the SH.BA
The average rent for a New York City apartment climbed $ 2,977, with nearly 7% from the same time last year, and more than $ 1,000 than the current national average.
Dramatic price increases followed a slight decline in the New York City Multi -Family Permit, which saw 42,230 building permits issued in 2024, a 9.5% blow from 2019.
“We expect the rent to continue to grow in Big Apple for this reason,” notes Berner.
Nine other large meters suffered a rise in lease prices among a deficiency of multifamilic allowed units, including Baltimore, Boston, Detroit and San Jose.
Some regions are seeing higher inventory, lower rents
It is not all punishment and darkness when it comes to renting. Recent data analyzed by Realtor.com researchers showed many changes in the region at the inventory and rental price level.
Nine by 50 meters high suffered an increase in the multifamilia permit in 2024 than the past five years at the same time the rents decreased year by year.
“When asked already weakening and the supply is expanding, we anticipate the most important drop in rents,” according to Berner.
A typical rented unit in San Diego saw its monthly level sink at 6%, at $ 2,667, as the number of multifamilic allowed units in the city was launched at almost 19% in 2024.
Birmingham, for him, without a similar trend, with the average rent price dropping by 5.4%, to $ 1,165, after a 22% increase in the building permit.
Although Denver had a significant reduction of 41% of multifamil construction last year, the average city lease experienced the steep annual fall of all metros in February, pouring 6.4%, reaching $ 1,773.
Studio units see less lease growth from 2019
Studio rental prices generally tend to be unstable, but in February they coincided with the growth of unit one and two rooms compared to the same period in action, at a level of just more than -1%.
A typical studio unit in February had an average rent of $ 1,413, down 0.8% year by year. Meanwhile, the average rent per unit of one bedroom was $ 1,583, while a two -bedroom apartment could be rented for $ 1,887, with both of these figures representing a 0.7%annual drop.
“This is the second to stabilize the market in a pattern of ongoing price attraction,” Berner explains.
An enlarged view reveals that studio units had the slightest growth of rent from five years ago to 9.7%, as two -bedroom apartments had the largest rise in rents to 18.3%.
“The strongest increase in long -term rent for larger units can be attributed to the fact that fewer young tenants are becoming homobuers for the first time between high prices of homes and high levels of deaths, and fewer young people are forming independent families who can live with roommates instead, holding greater leases.
10 meters where rents have dropped the most
Change from year to year (0-2 bedrooms): -6.4%
Average monthly rent (0-2 bedrooms): $ 1,773
2. San Diego, ca
Change from year to year (0-2 bedrooms): -6%
Average monthly rent (0-2 bedrooms): $ 2,667
3. Birmingham, to
Change from year to year (0-2 bedrooms): -5.4%
Average monthly rent (0-2 bedrooms): $ 1,165
Change from year to year (0-2 bedrooms): -4.8%
Average monthly rent (0-2 bedrooms): $ 1,462
Change from year to year (0-2 bedrooms): -3.6%
Average monthly rent (0-2 bedrooms): $ 2,071
Change from year to year (0-2 bedrooms): -3.5%
Average monthly rent (0-2 bedrooms): $ 1,458
Change from year to year (0-2 bedrooms): -3.3%
Average monthly rent (0-2 bedrooms): $ 1,293
Change from year to year (0-2 bedrooms): -3.3%
Average monthly rent (0-2 bedrooms): 2,678 dollars
Change from year to year (0-2 bedrooms): -3.1%
Average monthly rent (0-2 bedrooms): 1,492 dollars
Change from year to year (0-2 bedrooms): -3.0%
Average monthly rent (0-2 bedrooms): $ 1,170
#lease #prices #entire #city
Image Source : nypost.com