After a rollercoaster of rental prices in the last two years, renters are being primed for a more stable price range for 2023.
Renters Expected to Experience a More Stable Price Range for 2023
While there is no consensus on the exact price range for 2023, what’s clear is that they are anticipated to normalize. Experts noted that the inventory increase, slow economy, and more attractive sale market will help keep a lid on rent growth this year. Redfin’s Chief economist commented that there will be a very tepid rent growth until inflation is resolved.
According to a published post by Yahoo Finance,the Fed is trying to slow the economy down, especially during rent inflation. This would expectedly stabilize rental prices for 2023. Seeing average rent prices jump to 6.2% last year and 15% in 2021, renters are glad to welcome this change. Yardi Matrix predicts that rents across the country will flatten or slightly fall this year.
After a rollercoaster of rental prices in the last two years, renters are being primed for a more stable price range for 2023. (Photo: Yahoo Finance)
A Trend Which People Want to Maintain
The national average rent price range dropped for the fourth consecutive month in December. Prices started going down by 3% since August and marked the biggest four-month retreat in rents since 2017. As the trend continues, Redfin stated that renters are to experience a small year-over-year decline by mid-2023, with drops coming much sooner in some metros.
These metros are those markets with high rates in the past two years like Austin, Phoenix, and Boise. Austin’s average asking rent declined year over year in both November and December while Las Vegas dropped $15 compared with December 2021. These areas are the ones considered boomtowns. Boomtowns basically are places that got trendy during the pandemic. The term “trendy” mean rent prices got overvalued.
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