Redfin chief economist Daryl Fairweather predicted a peak in apartment completions by 2024.
Despite the cool-off in rent increases, significant drops in asking rents haven’t materialized yet. Landlords are still seeing strong demand fueled by high mortgage rates, and some are enticing renters with one-off concessions like a free month’s rent or reduced parking fees rather than lowering rents outright.
The rising cost of buying a home compared to renting is another factor keeping the rental market buoyant.
“There’s not a huge incentive for renters to buy right now. Asking rents are stable, and while mortgage rates have dipped in recent months, they haven’t fallen enough to make the financial equation of homebuying feasible for many people,” Fairweather said. “If you’re a renter who’s interested in buying but isn’t in a rush, there’s not much downside to waiting for mortgage rates to fall and your savings to grow.”
However, buying could still make sense for those in a position to make a large down payment and planning to stay in their home for at least five years.
Source: mpamag.com