As evidenced by a recent rental survey1, rent prices are plummeting and there’s never been a better time to check prices of new rentals in your area. According to Zumper’s National Rent Report, “demand for rentals in expensive markets is falling while there is increased demand in neighboring, less expensive cities.” While this downturn might be hurting landlord’s pocket books, the silver lining is it might be one of the best times for renters to search for better prices in their area.
Tenants Are In The Driver’s Seat
Tenants seem to now have an upper hand in snatching up some great deals across major US cities. This is the ripe time to find some affordable, below market rentals since landlords are seeing their vacancies rise. Landlords need to make deals since many employees have lost their job and have vacated their apartments. Many tenants have fled out of town. That flight has pushed down rental prices across major US metropolitan cities.
As vacancy rates increase, landlords are forced to lower their rents – it’s the best way for landlords to increase interest in their units. It’s now become a windfall for tenants.
Once apartments that were out of reach for some individuals are now prime spots to rent. Apartment dwellers may be able to find a better apartment for the same price as they are paying now or save money.
Work From Home Trends
Many companies have started to adopt a permanent work from home model. Facebook and Twitter announced that employees who are currently working from home can continue to do so on a permanent basis. This may become the new norm for many industries, so it is best for you to be prepared. Millions of workers may flee dense metro areas since they will no longer have to commute. These workers will now find a new geographic freedom.
As you can see, a home office is in high demand now. Many businesses are now closed for the foreseeable future or have embraced their employees to work from home from now on. Tenants are now taking this in to consideration now as they do their apartment search.
An outdoor space is also becoming very attractive after having to stay indoors for such a long period of time. It is important for the mind and the body. Snatch up that opportunity if it becomes available since it might now be available at a discount.
This is a rare time for city dwellers who want to continue to live in the urban lifestyle. As soon as these affordable apartments start to become rented and inventory becomes diminished, you may see a steady increase in rents.
Now is the time to think about and search for your ideal living situation. You (and your roommate or significant others) may have settled for the size, location, and amenities in your current rental but you don’t have to settle now. Perhaps you have outgrown your current space, but couldn’t afford to move. Maybe you now have a baby and your building doesn’t have a laundry room. Now is your time to act.
New Incentives And Offers
Landlords have also increased their move-in incentives to attract new tenants. In the past, landlords may have offered one month of free rent if you sign a one-year lease. Now landlords are upping their incentives to 2 months2. If you amortize a $4,000/month lease over 12 months, you can save an additional $333 per month for that additional free bonus month.
If you’re happy where you are living in the city, you can still take advantage of these times. Now Is the time for you to negotiate a new lease. Reports3 have shown that renters are able to negotiate down their lease 10, 15, or as much as 20% due to so many vacancies.
Lifestyle Changes
It’s a tenant’s market now and renters are becoming very selective in where they want to live. In the past, a renter may have been lured to a building that offered a pool, gym, and lounge areas. Since theses common areas aren’t open or usable now, these perks have become less enticing and some landlords are pricing their units accordingly.
Many city renters who wanted to live close to work are now re-evaluating their lifestyle. If they weren’t attached to their city just for work, they are now thinking that if everything is shut down, why should they live there? In the past, there wasn’t a lot of personal or creative time other than to sleep, commute, work, and then repeat those steps every day. Why not have a good quality of life?
The Time To Take Action Is Now
Many brokers are predicting that rental prices in downtown urban areas will continue a downward spiral as demands shift from urban areas to the burbs. Brokers are forecasting this trend throughout the US, from New York, Los Angeles, San Francisco, Dallas, Boston, San Jose, Denver, any many other cities.
Space and affordability are two things that many metro areas are not known for. However, the time has changed and renters are in the driver’s seat. Now is your opportunity to tap in to the market. Enjoy a comfortable lifestyle. You deserve it. The window for these rental prices might be closing soon, so don’t wait.