If you’re a renter, you’re probably wondering when surging rent rates are going to calm the heck down. With year-over-year median asking rent up 27.9 percent from last August, many Americans are worried about being priced out of their rentals (if they haven’t been already). Good news: According to Dwellsy, relief is in sight for you and your wallet.
“In August, we saw a lower rate of rent increase than we have in previous months,” says Jonas Bordo, CEO and cofounder of Dwellsy. “Median asking rent grew by just 0.5 percent, or $10 ($2,100 in July versus $2,110 in August). This is especially good news for renters because the numbers are coming in below what we would expect. As rents approach their seasonal peak in early fall, we would normally see rent rising around 1 percent between July and August.”
Bordo says several factors are responsible for slower rent growth.
“Inflation and fears of an upcoming recession are having an impact,” he shares. “Higher rent and other rising expenses are slowing new household formation for renters and buyers. And there has been a material uptick in the delivery of new rental housing, especially apartments.”
So, can we expect a slower rate of rent growth to continue? Bordo believes so.
“I do expect a slower rate of increase going forward,” he confirms. “Barring unforeseen economic circumstances, the worst is behind us. But if you’re hoping that your rent will decrease in the near future, you’ll probably be disappointed. A slowdown or plateau is what’s most likely as the year draws to a close.”
Dwellsy, the largest home rental listing platform in the country, regularly mines its 13+ million verified residential rental listings for statistics and data. Because Dwellsy allows landlords to post listings free of charge, it has a pool of data that’s more diverse—and more representative of the true rental landscape—than that of pay-to-play listing services. Each month, Dwellsy breaks this data down regionally across the U.S. so that renters and landlords can see up-to-date trends in rental housing and current affordability in their area.
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About Jonas Bordo:
Jonas Bordo is the CEO and cofounder of Dwellsy, the free residential rental marketplace that makes it easy to find hard-to-find rentals. Prior to cofounding Dwellsy, Jonas was a senior executive at several leading real estate firms including Essex Property Trust and BentallGreenOak, and was with the Boston Consulting Group after graduating with his MBA from the University of Chicago Booth School of Business. Jonas has had the good fortune to build, rebuild, and lead amazing teams across the multifamily and commercial real estate operational and strategic spectrum; orchestrate the sale of several businesses; develop a strategic plan for one of the world’s leading symphony orchestras; implement a Toyota production system; and create more than 40 brands. He is husband to Rosalind and father to Bailey, Zach, and Thea; an avid hiker; a lifelong learner; and a maker of things, sometimes out of wood.
About Dwellsy:
Dwellsy is the renter’s marketplace: a comprehensive residential home rentals marketplace based on the radical concept that true, organic search in a free ecosystem creates more value than the pay-to-play model embraced by all of the current rental listing services. Dwellsy has more than 13 million residential rental listings—more than any legacy classifieds site—as well as the most diverse set of listings, including single family rentals, condos, and apartments. Dwellsy’s entirely different approach to residential rental listings focuses on presenting houses and apartments based on features renters need and want, not based on how much landlords pay to show their listings. Dwellsy investors include Frontier Ventures, Ulu Ventures, Blackhorn Ventures, Heroic Ventures, Anne Wojcicki, and the University of Chicago. For more information, please visit our newsroom or find your next home at Dwellsy.com.
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