Research shows rent prices are stabilizing
(CBS DETROIT) - Good news for renters out there. Research shows that those skyrocketing rent prices are finally starting to stabilize.
The prices are still up, but there's significance in the fact that the rate of increase is slowing down
Jon Leckie is a research analyst for "Rent." He says what we're seeing is significant for several reasons.
"On the national level rents were up about 2.37% year over year in January," Leckie said. "That was the smallest yearly change we've seen. It's the fifth consecutive months of single-digit increases, and yearly growth has sustained double digit increases for about 11 months; from October 2021 to September 2022."
Leckie says on a monthly basis, the rent rate is down almost 2% from December to January. That marks the last five months that we've seen rents decline on a monthly basis.
Based on the numbers, some say, this could be a good indicator for where we're headed in the future
"The Detroit metro has kind of had a recent peak in May 2022, down about 5% since then. On a yearly basis it's only at 1% and it's actually down about a ½% month over a month. It's sort of been hovering around $1,600 since July," Leckie said.
Leckie says something that goes well with the drop is getting back to seasonal trends. These are typical trends we saw before the pandemic, where rent prices e decline in the winter time, and then kick back up in the spring.
"You want to move somewhere in between November and maybe the beginning of March. That's when rent prices are going to be the lowest. If you can't do that, the other thing is, don't be afraid to negotiate prices or turning. I don't think it's ever quite a renters market, but you certainly, as a tenant, have more negotiating power now than you did six months ago," Leckie said.
Leckie goes on to say, you should show up, do your research and look at what other apartments in the area are going for with similar sizes in amenities. And also look at your over your changes and try to get any increases in price that you're saying from the listing to be more in line with historical trends.
