For weary renters across the country, the sun is starting to shine over the horizon.
The typical rent in the US in October dropped by almost 1% from the month prior and is climbing at a slower pace annually, a Redfin report showed this week.
On top of that, it was also the first month in which the typical rent — which came in at $1,983 — was under $2,000 since April, the report shows. Other good news for renters: The number of cities that saw year-over-year declines in rent doubled compared to the month prior.
The reason for the dip?
With the cost of living on the rise, more renters are inclined to stay in their current apartments, resulting in less competition for new leases, Taylor Marr, Redfin's deputy chief economist, said in the report.
"It will likely be a while before renters see meaningful relief, given that rents are still up more than wages," Marr said, even though inflation may start to cool off.
Indeed, the cost of housing has soared in recent years — making it one of the biggest expenses eroding the financial health of many Americans. Many economists predict that rents will climb at a slower rate in 2023, though the slowdown might not be quick enough for the Federal Reserve to lay off its interest-rate hikes, leading to a possible recession.
But for now, some of the biggest cities in the country — from Boston on the East Coast to Los Angeles on the West and Milwaukee in between — are starting to see notable drops in rent, meaning renters in these cities are finding relief, the report shows.
It's a trend that's been developing for at least a few months. Landlords, including Equity Residential, one of the largest in the country, reported declining rent increases last quarter.
Even some of the most popular pandemic hot spots are cooling, the rent data shows. Several cities on Redfin's lists — including Houston and Austin, Texas, as well as Atlanta — are among the Sun Belt cities that have seen a big influx of new residents over the past few years.