Rent is expected to see a bit of a reduction in some cities in 2024 according to a report from The Hill. A survey of 100 cities’ rent prices conducted by Zumper indicated that 55% of those cities have experienced a drop in rent compared to costs from last year. Even though this is a handful of cities, the report nonetheless predicts that rent prices will continue on a down tick for most of the first quarter of 2024. Zumper found that more apartments are being built in cities in various regions.
According to Zumper CEO Anthemos Georgiades, Denver, Las Vegas, and Salt Lake City are about to experience a jump in vacancies, which will lead to lower rent prices. “Several cities in the Intermountain region are nearing oversupply. We expect prices in these cities to fall more quickly than the national average,” Georgiades noted.
Texas cities like Dallas and Austin will also experience some measure of rent price relief, due to their insistence on building multi-family unit housing even during the pandemic, as the report reads, “This trend is most pronounced in some of the pandemic’s most popular Zoomtowns, including Phoenix and Austin. Texas cities — especially Austin and Dallas — have been extremely bullish in bringing new multi-family developments to market.”
In the Midwest, where cities were a little less remote work-friendly, rent prices are in a holding pattern but have been attractive for those looking for a slower, more affordable way of life. Likely, this is in reference to East Coast cities like New York, whose rent prices are almost always high due to a lack of space for housing, which puts a premium on any available units. According to the report, the median price of a one-bedroom in the Big Apple is $4,100, while a two-bedroom apartment will generally cost $4,800.Though this is good news for renters, the housing market in general is still a driver of the current inflation crisis.
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