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Rental costs are faster in some areas in the United States than other areas.
According to Redfin’s Chief Economist DaryL Fairweather, the combination of factors has improved the price of rent. One is that there is more supply.
“There is now a little construction boom during the pandemic, so there are more rental apartments now,” she said.
Fairweather said that the landlord and real estate manager needed to lower the rent price as the rental stock increased.
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In addition, the lessee has earned more income and gives more purchasing power.
The median of the lessee in 2024 was $ 54,752, an increase of 5.3 % from $ 52,019 in 2023, increasing by 35.2 % from $ 40,505 in 2019.
Still, the median income is still less than 14 % (or less than about $ 8,928).
“Most of the lessor bears rent,” said Fairweather. In other words, tenants spend more income than rental housing.
Harvard University’s Housing Research Center defines less than 30 % of income in rent and public interest business.
In some areas in the United States, there is a more advantageous rental market situation, such as a lot of newly built apartments. However, in other fields, the ratio of architectural activities is low, so competition for available units and costs is increasing.
Regardless of whether you are hunting for apartments, whether you want to update the lease, there are 10 places where the rent has fallen the most, and the cost of rising costs.
When rent decreases when the price is reasonable
Austin, Texas, is ranked first in the most affordable metro. Redphin defines a typical rental unit as a place for lessor to earn more than necessary.
A typical lessee in this area earns $ 69,781 annually. This requires an estimation of the site to provide a typical apartment.
Houston continues after Austin. Dallas; Salt Lake City; Rory, North Carolina. Denver; Phoenix; Washington DC; Baltimore; and Nashville.
Fairweather explained that in most of these 10 metro, the construction activity “intervened” or the price was reduced, and the supply was greatly increased.
She said that “the decline of demand” was also a factor. Astin -like places have a “popular boom”, a remote work jumped in the pandemic, and people were moving to these places.
But now, Metro says that people who move from New York for remote work that “people have returned to the office.”
Therefore, the combination of new builds and less demand is to lower the price and increase the affordable price for the lessee.
“Lack of new construction” keeps the rent high
Experts say that the US metropolitan areas, which are still expensive, are areas where construction activities have not been able to keep up with demand, as a result of reduced supply and costs.
“It’s a shortage of new construction,” said Joel Berner, a senior economist of Realtor.com.
Fairweather said that Lord Island Providence was in the commuting distance of Boston, a “very affordable price” area, so he created the top of Redphin’s most affordable area. Ta.
Boston people tend to earn much higher than professional videos residents.
She said that the “leaked” demand for Providence sets the price of the locals. And the city cannot build more housing to heal the need.
The main metro such as Los Angeles, Miami, New York and San Diego is one of the most expensive areas in the United States. Because, in addition to their limited supply, they are an area where employment opportunities and lively lifestyles are attracting high -income earners.
“Everything in the housing market is ECON 101,” said the burner. As long as the supply is low, the price remains high.
