In which states will rental prices drop the most in 2024 according to experts?
Finding a place to live became more expensive in the US in 2023, both for buyers and renters. Those who are looking to rent may get some luck in early 2024.
Housing and rental prices have risen sharply in 2023. According to the most recent Consumer Price Index report, the housing index rose 0.4% in November, after rising 0.3% the previous month. Meanwhile, the rental index increased 0.5% in November.
Looking at the annual increase, the housing index rose 6.5% over the 12-month period ending in November, while the rental index rose 6.9% over the past year. What are the predictions for next year?
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Will rental prices fall by 2024?
The Annual Rental Report from Zumper, one of the country's largest privately owned rental platforms, predicts that rental prices will soften, at least through the first half of 2024.
“A set of factors (including economic uncertainty, turbulent world events, a presidential election, changes in public attitudes of consumers and historic levels of new supply) will drive and attract the rental industry over the next 12 months”, notes the report.
The findings also indicate that those moving into a new rental location over the next six months will have more bargaining power than at any time in recent memory.
“Landlords and property managers are feeling the pressure, especially to rent new construction. They will continue to offer concessions and move-in deals. In the end, they will have no choice but to reduce asking rents,” says Zumper.
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The states where rental prices will drop in 2024
According to a report from Rent.com, the western states of the country, particularly the Mountain West, led the annual declines in rental prices in November and the trend could continue into next year. States in that area that saw the biggest drop in prices include Idaho, Utah, Colorado, New Mexico and Nevada.
In the Pacific Northwest, both Washington and Oregon recorded annual declines of more than 6%. Florida, Oklahoma and Texas were also among the states with the largest drops in rental prices.