Renters, be on the look out. September marks the start of the third quarter, and if historical trends are to be believed, this is the point when transactions begin to climb, especially if the summer months happened to be particularly slow. How high should buyers expect initial asking rents to be? A recent report released by Zumper listed down the top most expensive rental markets to date.
The report included current rental prices in comparison to the highest record prices as well as lift/decline percentages year-over-year and also against the prior record.
According to Zumper, the top 10 cities retained their positions this year with San Francisco once again securing the top spot. In addition, the report concluded that rental prices generally decreased or bore flat changes. Only Los Angeles and Seattle can boast double digit increases in the costs of one-bedroom rentals.
Interestingly, despite the number of declines, there was ultimately an increase of the median rental price on a nation-wide scale by 3.2% year-over-year. Analysts and real estate experts attribute this to the rise of the “mid-tier” rental market—a collective term that typically describes cities with more affordable rents. Cities like Fort Worth, Long Beach and Sacramento come to mind.
Here in New York, while it remains as the second hottest rental market for one bedrooms and the third ranked for two bedrooms, prices have decreased for both types, hitting $2,850 and $3,200 respectively. This drop goes between 8% to 9% in decline.
While there are worries over a potential collapse in rental prices, buyers can turn this new development into an advantage. With the end of 2017 coming closer, sellers—in an effort to close deals faster—become more flexible with their price negotiations. Contact your local broker to find out the latest in-market offerings at the moment and get ready to put on your best “deal maker” face. A signed contract means moving in sooner, and moving in sooner means more time to prepare for your next Thanksgiving and Christmas dinners.