June 27th 2023.
American renters may finally have some good news. For the first time since the onset of the pandemic, rent prices are beginning to decrease. According to The Washington Post, in May 2023, rent prices dropped by 0.5%. This was a huge relief to people who had to make plans to change their living arrangements due to the pandemic, as it caused a spike in rental prices.
Landlords had taken advantage of the needs of the American people, and the 0.5% decrease in rent prices was the first sign of hope that inflation wouldn't be as bad as predicted. Realtor.com reported that in July 2022, the median asking rent for 0-2 bedroom units was over $1,800. This is still over $300 more than the highest asking price before the pandemic.
Danielle Hale, Chief Economist at Realtor.com, said, “It has been a long time coming. But it does beg the question of how far will rents dip?” Experts predict that renters have seen the last of astronomical increases, with Igor Popov, Chief Economist at Apartment List, describing it as a “balloon that floats quickly to the ceiling, and then it’s on the ceiling sort of bouncing around.”
This summer, rent prices have flattened, which gives renters hope for an easier future. It is a sign that the worst of the inflation caused by the pandemic is over, and that more people may be able to afford to rent in the coming months.
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