Good news for tenants: albeit at a reduced rate, rental rates are still rising!

Zillow reports that in September, the average rent in the United States for a two-bedroom apartment was $1,880. Although this is less than the record rise of 14.1% in February 2022, it is still up 10.5% from the prior year.

While rental rates are still rising, the rate of increase is decreasing.

Renters might take heart from this reduction in rent rise, but it does not imply that rent becomes more reasonable. Investor competition is still growing, and many tenants are having difficulty making ends meet.

Why is the growth in rent slowing down?

The reduction in rent growth is being caused by a few things. To start with, the Federal Reserve is trying to fight inflation by hiking interest rates. Due to the increased cost of borrowing, landlords are being discouraged from raising rent.

Secondly, there is an increasing number of rental units available. More homeowners are renting out their homes, and new apartment buildings are being built. Rent pressure is being lessened by this.

What effect does this have on tenants?

Renters might take heart from the pause in rent rise, but this does not indicate that rent is getting more reasonable. Investor competition is still growing, and many tenants are having difficulty making ends meet.

It’s critical for tenants to be ready for competition from both investors and regular renters. Additionally, if you are having trouble paying your rent, you should be aware of your rights as a renter and know where to turn for help.

In this market, the following advice is given to renters:

• Deal with an experienced real estate broker.
• A competent agent can assist you in locating the ideal rental property and negotiating the greatest deal.
• Be ready to take swift action. When you find a rental property that you like, move immediately because the rental market is very competitive.

Extra advice for tenants:

• Think about purchasing renter’s insurance. Renter’s insurance can shield you from monetary damages in the event that your possessions are lost, stolen, or destroyed.
• Recognize your rights as a tenant. The laws protecting renters vary from state to state. There are tools available to help you if you are having trouble paying your rent, so be sure to investigate the laws in your state to know what your rights are.
• Rent assistance programs are available in several states and towns for low-income renters. For help, you can also get in touch with a nearby housing counseling organization.