Rent Prices Are Dropping, But Why?

A Shift in the Market

The housing market is undergoing significant changes. More apartments are being constructed, but fewer people are renting them. This shift is driving rent prices down.

• Average Rent in November 2024: $1,367
• Decrease from October: 1%
• Decrease from November 2023: 1.1%
• Decrease from Peak in 2022: 5.2%

Challenges for Young People

Young individuals are facing difficulties. Many are opting to live with family rather than renting their own places due to:

• High rent prices over an extended period
• Increased difficulty in finding jobs

Record High Vacancy Rates

The number of vacant apartments has reached a record high:

• Vacancy Rate in November: 7.2%
• Reason: More apartments are being built, but fewer people are renting them

Cities with Significant Rent Drops

Some cities are experiencing more substantial decreases in rent:

• Las Vegas: Tourism is slowing down, leading to fewer jobs
• Boston: Decline in federal funding for biotech and fewer foreign students

Popular Affordable Cities

People are seeking more affordable places to live:

• Popular Cities: Cincinnati, Atlanta, Kansas City
• Less Popular City: Washington, D.C. (formerly the top spot)

Market Stabilization

The market is expected to stabilize, but challenges remain:

• Construction: Slowing down but still high
• Job Market: Unstable, potentially affecting rental affordability