Redfin Reports Landlords Are Charging Near-Record Rents—But Offering Concessions
- Asking rents are near all-time high
- Some areas are offering discounts to attract renters
- Rent growth has cooled
- Asking rents fell 1.1% YoY in the West
The median asking rent in August was
While asking rents are near their all-time high, tenants in some parts of the country are finding deals. With vacancies on the rise, some landlords are doling out one-time discounts to attract renters while maintaining high asking rents on paper. This means rents are effectively coming down in some areas even though the declines don’t show up in asking-rent data.
“A year ago, you really didn't see concessions in the market. Fast forward to today, and they are far more common, with landlords offering from one to three months free in an effort to attract new tenants without lowering their asking rents,” said Rent. Chief Executive Officer Jon Ziglar. “Higher-end properties are beginning to see pressure in certain markets as a significant portion of new units coming online are in the higher end and luxury segment. We are still seeing a lot of competition for more affordable units due to less new supply, as well as increased pressure on consumer wallets limiting the ability to stretch for that higher level experience.”
Some building owners are raising rents for existing tenants but not new tenants to bolster returns without scaring off prospective renters.
Even though rents are hovering near their all-time high, they’re no longer posting large year-over-year jumps like they were in the past two years, when rental demand was surging. In August 2022, for instance, the median asking rent was up
Completed residential projects in buildings with five or more units rose
Rents Fall in the West, Rise in the Midwest and Northeast
In the West, the median asking rent fell
The rental market has cooled quickly in the West and South in part because those markets saw outsized rent increases during the pandemic. Rents skyrocketed as people flooded into Sun Belt cities including
While rents in the West and South have been relatively sluggish, these regions’ rental markets have started to stabilize in recent months as the impact of the pandemic price boom moves further into the rearview mirror and layoffs ease.
To view the full report, including charts, please visit:
https://www.redfin.com/news/redfin-rental-report-august-2023
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Source: Redfin