The housing market is seeing a shift as landlords turn less aggressive
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About 65% of US landlords plan to raise rents in the next 12 months, a new survey from Avail by Realtor.com showed.
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But that’s down from 70.4% in October 2022.
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Rent prices climbed 0.29% in April on an annual basis, the smallest yearly increase in more than three years.
Shifts are underway in the US housing market, with landlords turning less aggressive on raising rent prices in the coming months.
According to a survey of 2,500 landlords and renters from Avail by Realtor.com, 65.1% plan to raise rent on at least one of their properties in the next year, down from 70.4% in October 2022.
Of the landlords who said they don’t plan to raise rent, 48.2% said they aim to retain renters and avoid turnover, given the current market conditions.
Additional findings showed that 40.3% of landlords who aren’t raising rent pointed to a strong landlord-tenant relationship as a key influence to their decision.
Meanwhile, Rent.com data shows that rent prices climbed 0.29% in April on a year-over-year basis, the smallest annual increase in more than three years.
Renters, for their part, have been forced to stomach growing economic headwinds and a lack of affordability. More than half of renters, the Avail survey said, don’t think they can afford a rent increase.
With rent prices still hovering close to record-highs, that poses an obstacle for landlords looking to keep units occupied moving into 2024. The national median rent in April hit $1,967, down from March’s $1,971 but still higher than $1,937 in February.
US rents had peaked in $2,053 in August 2022, according to GoBankingRates data.
Less than one-third of landlords said they’re already charging rents at fair market value, and about 15% said they expect average rents to fall in the next year.
Meanwhile, 30% of renters are considering buying a home in the next 12 months, down from 34.6% in July 2022 and 32.3% in October 2022, according to the Avail survey.
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