{"id":176580,"date":"2024-08-21T08:54:30","date_gmt":"2024-08-21T14:54:30","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=176580"},"modified":"2024-08-21T08:55:09","modified_gmt":"2024-08-21T14:55:09","slug":"rental-market-report-july-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/rental-market-report-july-2024","title":{"rendered":"Rentals Cool\u2014Here&#8217;s Where Concessions Are Picking Up"},"content":{"rendered":"\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/july-2024-rent-report-34276\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow\u2019s July rental report<\/span><\/a><span data-preserver-spaces=\"true\"> shows an increased turn toward affordability in some U.S. cities. A construction boom is bringing new units to market, increasing supply and forcing landlords to incentivize tenants.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the rental roller coaster of the last few years, the latest news will be welcome for prospective tenants, even though rents have continued to rise from a year ago and have remained on an upward trajectory in many markets.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">More Concessions and a Construction Boom<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The concessions offered by a third of property managers, such as one month\u2019s free or half-priced rent and free parking, will help tenants in softening markets get over the initial hump of finding the money for moving, a security deposit, and rent.\u00a0<\/span><\/p>\n\n\n<div class='tableauPlaceholder' id='viz1724250369964' style='position: relative'><noscript><a href='https:&#47;&#47;www.zillow.com&#47;research&#47;july-2024-rent-report-34276&#47;' target=\"_blank\"><img decoding=\"async\" alt=\" \" src=\"https:&#047;&#047;public.tableau.com&#047;static&#047;images&#047;ju&#047;july2024RR&#047;Concessions&#047;1_rss.png\" style=\"border: none\" title=\"\"><\/a><\/noscript><object class='tableauViz'  style='display:none;'><param name='host_url' value='https%3A%2F%2Fpublic.tableau.com%2F' \/><param name='embed_code_version' value='3' \/><param name='site_root' value='' \/><param name='name' value='july2024RR&#47;Concessions' \/><param name='tabs' value='yes' \/><param name='toolbar' value='no' \/><param name='static_image' value='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;ju&#47;july2024RR&#47;Concessions&#47;1.png' \/><param name='animate_transition' value='yes' \/><param name='display_static_image' value='yes' \/><param name='display_spinner' value='yes' \/><param name='display_overlay' value='yes' \/><param name='display_count' value='yes' \/><param name='filter' value=':revert=' \/><param name='refresh' value='yes' \/><param name='filter' value=':linktarget=' \/><\/object><\/div>\n<p>                <script type='text\/javascript'>                    var divElement = document.getElementById('viz1724250369964');                    var vizElement = divElement.getElementsByTagName('object')[0];                    if ( divElement.offsetWidth > 800 ) { vizElement.style.width='800px';vizElement.style.height='623px';} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width='800px';vizElement.style.height='623px';} else { vizElement.style.width='100%';vizElement.style.minHeight='923px';vizElement.style.maxHeight=(divElement.offsetWidth*1.77)+'px';}                     var scriptElement = document.createElement('script');                    scriptElement.src = 'https:\/\/public.tableau.com\/javascripts\/api\/viz_v1.js';                    vizElement.parentNode.insertBefore(scriptElement, vizElement);                <\/script><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In its report, Zillow stated that June saw more <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\"> units completed than any month in nearly half a century, creating options for cash-starved tenants. <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/market-snapshots\/new-apartment-construction\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">RentCafe<\/span><\/a><span data-preserver-spaces=\"true\"> ratified Zillow\u2019s findings, <\/span><span data-preserver-spaces=\"true\">stating<\/span><span data-preserver-spaces=\"true\"> that developers are on track to complete a massive, record 518,108 rental units by the end of 2024, marking a 9% increase year over year and a 30% increase over 2022.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zillow stats show that the typical U.S. rent rose 0.4% in July to $2,070. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> was marginally down from 0.5% growth in June and 0.6% growth in April and May. Annual rent growth hit the brakes, too, with rents up 3.4% year over year, compared to 3.5% year-over-year growth in June.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Increased Affordability&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">These <\/span><span data-preserver-spaces=\"true\">fine<\/span><span data-preserver-spaces=\"true\"> margins of decreasing growth have tipped the affordability scales, with tenants now on the right side of the cost-burdened threshold, meaning they are paying just under 30% of their monthly income on rent.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Property managers have responded accordingly, with 33.2% of national rental listings on Zillow offering a concession in July, up from 25.4% last year. In the Sunbelt, where much of the construction has occurred, the concessions were even higher\u2014the sole exception being Salt Lake City, which is not in the Sunbelt\u2014with over 50% of Zillow listings offering concessions in the following cities:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Raleigh-Cary%2C%20NC\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Raleigh, North Carolina<\/span><\/a><span data-preserver-spaces=\"true\"> (53.3%)<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Charlotte-Concord-Gastonia%2C%20NC-SC\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Charlotte, North Carolina<\/span><\/a><span data-preserver-spaces=\"true\"> (53.1%)<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Atlanta-Sandy%20Springs-Alpharetta%2C%20GA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Atlanta<\/span><\/a><span data-preserver-spaces=\"true\"> (52.2%)<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Salt%20Lake%20City%2C%20UT\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Salt Lake City<\/span><\/a><span data-preserver-spaces=\"true\"> (50.9%)<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Nashville-Davidson--Murfreesboro--Franklin%2C%20TN\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Nashville, Tennessee<\/span><\/a><span data-preserver-spaces=\"true\"> (50.8%)<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Austin-Round%20Rock-Georgetown%2C%20TX\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Austin, Texas<\/span><\/a><span data-preserver-spaces=\"true\"> (50.5%)<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, nationally, the rental market is in flux. Four metros have a smaller share of concession-induced listings than last year. These are:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=San%20Jose-Sunnyvale-Santa%20Clara%2C%20CA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">San Jose, California<\/span><\/a><span data-preserver-spaces=\"true\"> (-9.7%)\u00a0<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Baltimore-Columbia-Towson%2C%20MD\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Baltimore<\/span><\/a><span data-preserver-spaces=\"true\"> (-5.6%)\u00a0<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Milwaukee-Waukesha%2C%20WI\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Milwaukee<\/span><\/a><span data-preserver-spaces=\"true\"> (-1.8%)<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Pittsburgh%2C%20PA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pittsburgh<\/span><\/a><span data-preserver-spaces=\"true\"> (-0.2%)<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Diverse National Market Shows Affordability Issues Remain<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A recent <\/span><em><a class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2024\/06\/20\/business\/economy\/housing-market-explained.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">New York Time<\/span><\/a><\/em><a class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2024\/06\/20\/business\/economy\/housing-market-explained.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">s<\/span><\/a><span data-preserver-spaces=\"true\"> article offered insight into the wide-ranging rental market, stating: \u201cMany tenants are paying rents negotiated earlier in the housing cycle, and the new construction has <\/span><span data-preserver-spaces=\"true\">been concentrated<\/span><span data-preserver-spaces=\"true\"> in the luxury market, which doesn\u2019t do much to help middle- or lower-income renters, at least in the short term.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A recent<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/real-estate\/rent-hikes-loom-posing-threat-to-inflation-fight-e6797e39\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Wall Street Journal<\/span><\/a><\/em><span data-preserver-spaces=\"true\"> article stated that<\/span><span data-preserver-spaces=\"true\"> rents <\/span><span data-preserver-spaces=\"true\">are expected<\/span><span data-preserver-spaces=\"true\"> to<\/span><span data-preserver-spaces=\"true\"> rise throughout 2024 in Northeast and Midwest cities, such as <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Kansas%20City%2C%20MO-KS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Kansas City, Missouri<\/span><\/a><span data-preserver-spaces=\"true\">, and <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Washington-Arlington-Alexandria%2C%20DC-VA-MD-WV\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Washington, D.C.<\/span><\/a><span data-preserver-spaces=\"true\">, with no <\/span><span data-preserver-spaces=\"true\">letup<\/span><span data-preserver-spaces=\"true\"> in sight. Overall, however, the rental outlook is more encouraging for tenants than it was a year ago, as shown by the Zillow Observed Renter Demand Index, a measure of rental market tightness, which has fallen by 23.3% since last July\u2014no doubt down to the massive numbers of new rentals hitting the market. Increasing supply has created a healthier rental ecosystem, manifesting across various markets as developments <\/span><span data-preserver-spaces=\"true\">are completed<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How an Interest Rate Drop Will Affect Rentals&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As interest rates drop, the rental market will likely soften more as more renters can afford to buy houses. <\/span><span data-preserver-spaces=\"true\">However, calling workers back to the office <\/span><span data-preserver-spaces=\"true\">on a full-time or hybrid basis<\/span><span data-preserver-spaces=\"true\"> will also play a part, causing employees to drop the remote work\/rental lifestyle.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The cost of construction will also affect rental prices. Developers locked into higher rates could focus on less risky projects in areas with high rental demand and strong job growth.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix,<\/span><span data-preserver-spaces=\"true\"> told RentCafe:&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">\u201cThe overall impact on the number of developers might vary by region. In places like Texas, for instance, the demand for apartments remains robust due to factors like corporate migration and high home prices. On the other hand, some markets are seeing a slowdown in new construction starts due to the economic environment.\u201d&nbsp;<\/span><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Some Standout Stats From the Recent Zillow Report<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Rents<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">U.S. rents are now up 3.4% from last year.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Rents have increased by 33.4% since the start of the pandemic.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Only one <\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\"> metro area has seen rents fall <\/span><span data-preserver-spaces=\"true\">on a monthly basis<\/span><span data-preserver-spaces=\"true\">: Austin (-0.2%).<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Rents are up from year-ago numbers in 48 of the 50 largest metro areas. Annual rent increases are highest in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Hartford-East%20Hartford-Middletown%2C%20CT\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Hartford, Connecticut<\/span><\/a><span data-preserver-spaces=\"true\"> (7.9%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Cleveland-Elyria%2C%20OH\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Cleveland<\/span><\/a><span data-preserver-spaces=\"true\"> (7.3%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Providence-Warwick%2C%20RI-MA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Providence, Rhode Island<\/span><\/a><span data-preserver-spaces=\"true\"> (6.7%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Louisville%2FJefferson%20County%2C%20KY-IN\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Louisville, Kentucky<\/span><\/a><span data-preserver-spaces=\"true\"> (6.6%) and <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Richmond%2C%20VA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Richmond, Virginia<\/span><\/a><span data-preserver-spaces=\"true\"> (6%).<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Single-family rents<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Typical<\/span><span data-preserver-spaces=\"true\"> single-family is $2,294 as of July, up 0.4% <\/span><span data-preserver-spaces=\"true\">month over month<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Single-family rents are now up 4.7% from last year.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Single-family rents have increased by 40.1% since the start of the pandemic.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Only two metro markets\u2014Milwaukee (-0.7%) and Austin (-0.02%)\u2014saw rents fall monthly.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Single-family rents are up from year-ago levels in 49 of the 50 largest metro areas.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Annual single-family rent increases are highest in Cleveland (8.6%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Cincinnati%2C%20OH-KY-IN\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Cincinnati<\/span><\/a><span data-preserver-spaces=\"true\"> (7.8%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Indianapolis-Carmel-Anderson%2C%20IN\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Indianapolis<\/span><\/a><span data-preserver-spaces=\"true\"> (7.5%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Columbus%2C%20OH\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Columbus, Ohio<\/span><\/a><span data-preserver-spaces=\"true\"> (7.2%) and Louisville (7.2%).<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Multifamily rents<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">As of July, the typical U.S. asking rent for an apartment in a multifamily building is $1,916, up 0.4% <\/span><span data-preserver-spaces=\"true\">month over month<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Rents are up 2.6% from last year.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Rents have increased 27.3% since the start of the pandemic<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Multifamily rents were down in these Sunbelt cities <\/span><span data-preserver-spaces=\"true\">on a monthly basis<\/span><span data-preserver-spaces=\"true\">: Austin (-0.3%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Phoenix-Mesa-Chandler%2C%20AZ\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Phoenix<\/span><\/a><span data-preserver-spaces=\"true\"> (-0.2%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=San%20Antonio-New%20Braunfels%2C%20TX\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">San Antonio, Texas<\/span><\/a><span data-preserver-spaces=\"true\"> (-0.1%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Jacksonville%2C%20FL\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Jacksonville, Florida<\/span><\/a><span data-preserver-spaces=\"true\"> (-0.1%) and <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Las%20Vegas-Henderson-Paradise%2C%20NV\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Las Vegas<\/span><\/a><span data-preserver-spaces=\"true\"> (-0.02%)<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Multifamily apartment rents are up in 40 of the 50 largest metro areas, with the <\/span><span data-preserver-spaces=\"true\">largest<\/span><span data-preserver-spaces=\"true\"> increases in growing small cities: Hartford (8.3%), Providence (7%), Cleveland (6.5%), Louisville (6.2%), and Richmond (5.1%).<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Rent affordability<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Although the median household spends 30% of its income on rent, <\/span><span data-preserver-spaces=\"true\">an important<\/span><span data-preserver-spaces=\"true\"> cost burden metric, it is still up from 28.6% pre-pandemic levels.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The most affordable rental metro areas are <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Minneapolis-St.%20Paul-Bloomington%2C%20MN-WI\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Minneapolis<\/span><\/a><span data-preserver-spaces=\"true\"> (20.2% of median income spent on a new rental), Salt Lake City (20.3%), St. Louis (20.6%), Austin (21%), and Raleigh (21.2%).<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The least affordable rental metro areas are <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Miami-Fort%20Lauderdale-Pompano%20Beach%2C%20FL\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Miami<\/span><\/a><span data-preserver-spaces=\"true\"> (42.9% of median income spent on a typical new rental), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=New%20York-Newark-Jersey%20City%2C%20NY-NJ-PA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">New York<\/span><\/a><span data-preserver-spaces=\"true\"> (42%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Los%20Angeles-Long%20Beach-Anaheim%2C%20CA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Los Angeles<\/span><\/a><span data-preserver-spaces=\"true\"> (37.4%), <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=San%20Diego-Chula%20Vista-Carlsbad%2C%20CA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">San Diego<\/span><\/a><span data-preserver-spaces=\"true\"> (34.1%), and <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Riverside-San%20Bernardino-Ontario%2C%20CA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Riverside, California<\/span><\/a><span data-preserver-spaces=\"true\"> (33.8%).<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The income needed <\/span><span data-preserver-spaces=\"true\">to comfortably afford the typical U.S. rent<\/span><span data-preserver-spaces=\"true\">, spending no more than 30% of annual income on rent, is $82,795.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Any rental market softening is good news for tenants compared to the last few years. However, <\/span><span data-preserver-spaces=\"true\">the lens must be widened<\/span><span data-preserver-spaces=\"true\"> for a more accurate picture. Rents have increased by a meteoric 27% to 40% across all property types since the start of the pandemic. <\/span><span data-preserver-spaces=\"true\">Wages, though <\/span><span data-preserver-spaces=\"true\">greater<\/span><span data-preserver-spaces=\"true\"> too, have <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nbcnews.com\/business\/economy\/inflation-higher-biden-rising-pay-makes-rcna158569\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">not managed<\/span><span data-preserver-spaces=\"true\"> to keep pace<\/span><\/a><span data-preserver-spaces=\"true\"> with rents, especially when other living expenses such as food and energy <\/span><span data-preserver-spaces=\"true\">are factored in<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Thus, there is still a chronic affordability issue across much of America, particularly in the Northeast and parts of the Midwest, where rental inventory remains low or high-priced. As seen in the Sunbelt (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.msn.com\/en-us\/money\/realestate\/new-york-city-dallas-lead-apartment-construction-boom-in-2024-report\/ar-AA1oCjKe?ocid=BingNewsVerp#:~:text=For%202024,%20New%20York%20City,comes%20in%20next%20with%2021,506.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">it\u2019s happening too in NYC<\/span><\/a><span data-preserver-spaces=\"true\">, but it is a very expensive city to begin with), a building bonanza is still needed in other parts of the U.S. Therefore, investors offering affordable housing in these areas will find endless demand.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_7093d284e19bcc29f3686943b1e3098e\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_525945da442a1df89c8fd0671327fa76\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_aa4d3c422553aa740e73408637c1de16 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/rental-market-report-july-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/rental-market-report-july-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The rental market has been on a downward trajectory for a while, but now a third of landlords are offering concessions.<\/p>\n","protected":false},"author":613725,"featured_media":176564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7382],"tags":[],"class_list":["post-176580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rental-prices"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/176580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=176580"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/176580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/176564"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=176580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=176580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=176580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}