Find out where ATL housing stands in terms of pricing and availability.
Atlanta’s housing market is, in a word, competitive, with homes generally receiving multiple offers and selling within a month. However, the market has shown some signs of fluctuation in the last couple of years. Read on to learn more about the ebbs and flows that determine and define the Altlanta housing market.
The general trend
The median sale price in Atlanta was $409,000 last month, marking a 6.0% decrease compared to the previous year. Additionally, the median sale price per square foot was $276, down by 1.8% since last year.
Neighborhood-specific housing trends
Each Atlanta neighborhood featured below is experiencing its own unique trends.
Midtown: Known for its lively vibe, Midtown’s housing market saw a median sale price of $389,000, a decrease of 2.8% from the previous year. The price per square foot showed a minimal increase to $402, indicating a relatively stable market.
Downtown Atlanta: Contrasting Midtown, Downtown Atlanta experienced a 12.7% increase in median home prices, reaching $307,000. Homes stayed on the market for an average of 69 days, significantly longer than the previous year.
West End: A culturally rich area, the West End’s average house price slightly decreased to $331,000, a 1.2% drop from the previous year.
Southwest Atlanta: This neighborhood showed resilience with an average house price increase of 3.5%, reaching $238,000.
Capitol View: Capitol View experienced a 4.4% increase in average house prices, settling at $418,000.
Atlantic Station: Here, the median sale price decreased by 5.3% to $310,000, but the price per square foot rose significantly by 13.0% to $338.
Grove Park: Grove Park saw a remarkable increase in housing prices, with an average of $318,000.
East Atlanta: This area experienced a downturn with home prices decreasing by 6.1%, settling at a median price of $495,000.
Northeast Atlanta: This area saw a substantial increase in median sale prices, which were up by 14.3% to $503,000. The price per square foot also rose by 5.2% to $383.
Edgewood: As one of the most competitive markets, Edgewood’s average house price was $573,000, up by 12.3% from last year.
Peoplestown: This neighborhood saw a significant decrease of 28.5% in average house prices, which stood at $413,000.
Atlanta rental market analysis
The rental market in Atlanta is full of options, with variations depending on the area and style of the apartment.
General rental trends: In 2023, Atlanta’s average rent ranged from $1,662 for a studio to $2,487 for a two-bedroom apartment. One-bedroom apartments averaged $1,912 in rent.
Northeast Atlanta rental market: This area is on the higher end of the rental spectrum, with the average rent for a one-bedroom apartment around $2,187. The market here shows stability with a slight variation in rent prices, indicating a consistent demand.
Further insights on the Atlanta rental market
Several factors, including the economic landscape, population growth and urban development influence the rental market in Atlanta. In recent years, Atlanta has seen an influx of new residents, driven by its growing reputation as the premier cultural, economic and entertainment hub in the Southeast. This population growth has led to increased demand for rental properties, especially in popular areas like Midtown and Buckhead.
Moreover, the city’s growing job market, particularly in sectors like technology, finance and healthcare, has attracted professionals seeking a setup near their workplaces, making it a top contender when we talk about best cities for hybrid work. This demand has led to the development of new apartment complexes and the renovation of older buildings, further diversifying the rental options available.
It’s all about The A
The Atlanta real estate market, both in terms of housing and rentals, presents a nuanced picture. While some areas show increasing home and rental prices, others are experiencing stabilization or even a decrease. This variety reflects the city’s diverse demographic and economic makeup, offering opportunities for buyers and renters depending on their preferences and needs.
Gen Z and millennials are “hacking” the housing market as high prices and interest rates make affordability difficult.
The term “house hacking” refers to the practice of renting out a portion of your home or an entire property for an additional stream of income.
Almost 4 in 10, 39%, of recent homebuyers say the practice represents a “very” or “extremely” important opportunity, according to a new report by housing market site Zillow. That share is up eight percentage points in the past two years.
Younger generations are especially keen on the idea. In Zillow’s survey, more than half of millennial, 55%, and Gen Z home buyers, 51%, expressed positive views on house hacking.
Zillow polled more than 6,500 recent homebuyers between April 2023 and July 2023. Respondents were adults who moved to a new primary residence they purchased in the past two years.
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The additional income from house hacking can “help make those dreams of homeownership penciled into reality, given that there’s so many affordability constraints on the current market,” said Manny Garcia, senior population scientist at Zillow.
The median sale price for a house in the U.S. was $413,874 in October, up 3.5% from a year ago, according to a report by real estate site Redfin.
The average rate for 30-year mortgages hit 8% in October, the highest level seen in 23 years, according to Bankrate. To compare, rates bottomed out slightly below 3% in January 2021.
While renting out portions of a newly owned property can help offset higher costs of a home, potential buyers will need to make a few considerations beforehand.
‘You need to earn six figures to afford a starter home’
As home prices and interest rates have risen, potential homebuyers need a salary of $114,627 to afford a median-priced house in the U.S., a recent report by Redfin found. Redfin’s analysis used the median home price of $420,000 in August.
“In many places, you need to earn six figures to afford a starter home, so it makes sense for young people who are seeing how expensive homeownership is to want options,” said Daryl Fairweather, chief economist at Redfin.
With few small starter homes available, a millennial or Gen Z buyer may have to jump on a more expensive home than they would have wanted, Fairweather said.
“Having the option to rent or have a roommate is important in an environment where there just aren’t that many small homes for sale,” she said.
House hacking may help those homeowners by providing them additional income for expenses or even help cover the mortgage.
More apartment buildings are available
The opportunity to house hack may be short lived. In some markets, new apartment buildings are under construction that will have available units next year, especially smaller, one bedrooms.
Rental market inflation, which had been stubbornly high for much of 2023, has cooled due to new inventory, pushing the rental vacancy rate up to 6.6% in the third quarter, the highest level since the first quarter of 2021, according to Redfin data.
“We’ve already seen rent prices stabilize, especially for single occupancy rentals,” Fairweather said. It’s going to be harder to rent out a room as more rentals become affordable, she added.
Despite the growth in available apartments, the U.S. is facing a “massive shortage of housing, especially affordable housing options,” said Zillow’s Garcia.
“If you’re pricing your home competitively, renting out can be a reliable source of income because there’s no shortage of people looking for a place to live,” he said.
What to consider before ‘house hacking’
While renting out a portion of your home can serve as an additional income, interested buyers would still need to gather a sufficient down payment and proof of income to show they can already afford the monthly payments.
“If you’re going to rely on rental income in order to qualify, you’ll have a problem,” said Melissa Cohn, mortgage banker and regional vice president of William Raveis Mortgage.
“They need to prove they can afford the mortgage without the rent,” she said.
Banks won’t consider potential rental income and they will require the buyer to be able to qualify for the financing without the support of potential rental income, she said.
There is another risk to buying a bigger house with the intention of renting out part of it: You could wind up stuck with an expensive mortgage and a room you can’t rent out.
If renting out part of your home — or the entire property — is optimal for you, do your research on what the current rate is for your type of home. Consult with rental managers who can help draft leases and give you a good estimate on the going rate in your area, said Garcia.
“There’s a lot of homework to be done to make sure that you’re pricing correctly when you’re posting your unit for rent,” Garcia said.
Additionally, keep in mind that there is a big chance the house you are considering may be subject to local ordinances on renting or homeowners association regulations.
Ohio is a state that offers a unique blend of bustling city life and peaceful suburban tranquility. For those seeking an affordable place to lay their roots, Ohio boasts lower housing costs compared to the national average. From the serene landscapes of Lorain to the historic charm of Fostoria, the state of Ohio provides renters with a myriad of options that do not put a strain on their budget. These cities, which include Elyria, Lima, and Steubenville, offer lower rental prices, making them the top 5 cheapest cities to rent in Ohio.
Lorain, with a population of 63,832, is a city that guarantees affordable living without compromising quality of life. With a median home value of $90,700 and a median income of $40,486, Loraine’s reasonably-priced housing options stand out. The city offers potential renters the chance to lease a 2-bedroom apartment for just $695 per month. Located near the scenic Lake Erie and the beautiful Black River Reservation, Lorain offers several recreational opportunities for residents and a peaceful setting to come home to every day.
Elyria, Ohio, home to 53,844 residents, offers an attractive blend of affordability and opportunity. The city has a median home value of $107,600 and a median income of $43,816. The monthly asking rent for a 2-bedroom unit stands at $724. Elyria is home to Cascade Park, a beautiful natural area offering hiking trails, picnic areas, and a stunning waterfall, providing plenty of opportunities for outdoor fun and relaxation.
With a population of 36,908 and a median income of $34,586, Lima’s affordability also extends to its rental market, where a 2-bedroom unit has an asking rent of just $628 per month. Lima’s median home value is $68,900, a figure that demonstrates the city’s commitment to affordable living. Apart from its affordability, Lima is well-known for its rich history, with attractions like the Allen County Museum and the Ohio Theatre adding to the city’s charm.
Steubenville, with a population of 17,882 and a median income of $37,457, offers a quaint small-town living experience. The median home value in the city is $96,400, and the asking rent for a 2-bedroom unit is $550, making it an incredibly affordable place to live. Steubenville is not just about affordable living; it’s also rich in history and culture with attractions such as the Historic Fort Steuben and the Grand Theater.
Fostoria, the smallest of the listed cities, with a population of just 13,193 and a median income of $42,131, offers an affordable and peaceful living environment. The city has a median home value of $66,000, with a monthly asking rent for a 2-bedroom unit standing at $700. Known for its Glass Heritage Gallery and several beautiful parks like the Meadowlark Park, living in Fostoria provides a mix of affordability and quality of life.
The cheapest cities in each state were ranked based on its median home price and median asking rents for studio, one-, two-, and three-bedroom units. Prior to ranking, inputs were normalized, and weights were applied using a 1.25:1 ratio of asking rents to home prices. Data on home prices are from the U.S. Census 2016-2020 American Community Survey 5-year estimates. Data on asking rents are from Rent. Cities without data for one- or two-bedroom asking rents or a population of less than 10,000 were removed from this ranking. Any other missing values were zeroed and did not impact the final score.
Here’s your guide to Houston home buying and renting.
The Houston housing market in 2023 is marked by a mix of rising rental costs and a somewhat competitive market for home sales, with significant variances across different neighborhoods.
To get to know the situation better, let’s dive into the details of the Houston housing market and the rental market that underscores it.
The Houston rental market
In terms of rentals, there’s been a notable increase in average prices. Apartments in Houston range between $1,208 for a one-bedroom and $1,520 for a two-bedroom. Compared to 2021, these rates reflect a substantial increase, with a two-bedroom apartment averaging $1,637, indicating a 23.08% rise. This increase is even more pronounced when considering the rent for a studio apartment, which is around $1,242, and a one-bedroom, which is $1,208, both showing significant increases from the previous year.
Home sales in Houston
On the home sales front, the overall market in Houston is moderately competitive. Homes in Houston generally receive around three offers and sell in about 29 days. The median sale price in Houston was $325,000 last month, showing a modest increase of 1.3% since the previous year.
The median sale price per square foot also saw a rise to $176, up 3.5% from last year. This overall trend of moderate competitiveness and slight price increases is a consistent theme across the city.
Home prices by neighborhood
Diving deeper into specific neighborhoods, the differences become more pronounced. Downtown Houston, for instance, saw a significant jump in home prices, with a 37.1% increase compared to last year, bringing the median price to $405,000. Midtown Houston experienced a 40.7% bump, with an average house price of $390,000.
The Inner Loop West area also increased significantly, with the median sale price rising 12.0% to $560,000. In contrast, some areas like Cypress and Kingwood witnessed a decline in median sale prices. Cypress saw a 1.4% decrease, while Kingwood experienced a similar decline, with its median sale price dropping by 1.4%.
Other areas within Houston show further diversity in trends. The Greater Third Ward’s median sale price increased by 1.1%, while Greater Heights reported a 6.7% increase. Fourth Ward’s average house price saw a significant hike of 23.7%. However, some regions like University Place and Memorial experienced slight decreases in average house prices, with University Place seeing a 0.26% drop and Memorial a 4.2% decrease. Conversely, areas like Northeast Houston witnessed a 6.3% increase in their average house.
Settle down in a Houston home
The Houston housing market in 2023 is characterized by a general trend of rising rental prices and a housing market that is moderately competitive. The trends in home sale prices and competitiveness vary widely across different neighborhoods, with some areas experiencing significant increases in median sale prices, while others see modest decreases or stabilization. This variability reflects the diverse and dynamic nature of finding a home in a hot city like Houston.
The Denver housing market is a fascinating case study for potential homebuyers and real estate enthusiasts. As of late, the market is notably competitive, with homes averaging two offers and a relatively swift selling period of 18 days. Despite the competitive nature, the median sale price has dipped slightly to $569,000, a 3.6% decrease from the previous year. Nonetheless, the price per square foot has increased by 1.9%, landing at $370.
Let’s dive a bit deeper and learn some more about the Denver housing market and how the rental scene affects it.
Denver’s housing market by the numbers
The number of homes sold in Denver has experienced a downturn, with 802 homes sold in September 2023, marking a 19.4% decrease from the year before. This could reflect a tighter inventory or a shift in buyer behavior.
Despite no change in the median days on the market from the previous year, the Redfin Compete Score™ gives Denver a high score of 77 out of 100, suggesting a market where multiple offers on homes are common, and some buyers are willing to waive contingencies to secure their purchase.
Denver’s market is not just competitive but also pricier than the national average. The median sale price is a staggering 38% higher than the national average, and the overall cost of living in the city is 11% higher. Such figures put Denver in a unique position in the national housing landscape, making it a key market for established real estate investors and a challenging place for first-time homebuyers.
The strength of the Denver housing market
While homes tend to sell for about 1% below the list price, “hot” homes may go for about 1% above the asking price and can go within as little as five days. This dynamic underlines the critical importance of timing and strategic offer placement for buyers. For sellers, it reinforces the value of pricing homes correctly and understanding market trends to attract serious offers only.
In this thriving market, Denver stands out for its strong demand and the competitive edge it offers to sellers. However, the fluctuations in sales prices and the volume of homes sold suggest a nuanced environment, one where buyers may find opportunities amidst the competition, particularly if they are prepared to act quickly and decisively.
The data provided by Redfin offers a valuable snapshot for those interested in the Denver real estate market. It’s evident that while the market has cooled slightly in terms of sale prices and volume, the competitive spirit remains undiminished, with Denver homes still commanding significant interest.
Settle down in Denver
For those considering entering the Denver housing market, whether as buyers or sellers, this analysis highlights the importance of staying informed on current trends and being prepared to navigate a competitive, fast-moving and high-cost environment. With the right strategy and understanding of the market dynamics, you’ll have a shot at getting your foot in the door.
Renting in Denver
Studio apartments in Denver start at an average monthly rent of $1,801. This entry price point is indicative of Denver’s growing appeal and the premium on living in a city that ranks so high in terms of quality of life. Moving up in space, a one-bedroom apartment averages $2,043 per month. For roomier accommodations, a two-bedroom apartment will set renters back an average of $2,741 a month. These prices, while steep for some, are a testament to the city’s thriving economy and the desirability of the Denver lifestyle.
Factors at play in Denver’s rental market
What contributes to Denver’s rental rates? To put it simply, a lot of factors. Denver has experienced a tech boom in recent years, with many startups and established tech companies setting up shop in the area, and bringing with them a wave of high-income professionals. Additionally, Denver’s culture is strong, with a ton restaurants, galleries and venues catering to a diverse population. The city’s proximity to ski resorts and national parks also makes it an attractive location for outdoor enthusiasts, further driving up demand for affordable houses and apartments.
For renters, these factors mean that while they might face higher rental rates, they are also purchasing access to a high-caliber quality of life. Denver’s public transportation system, including the expansive RTD Bus and Rail network, allows for easy commutes to and from the city’s neighborhoods and the downtown area. This accessibility adds value to Denver rentals, as does the proximity to renowned institutions like the University of Denver and the Colorado State Capitol.
The city’s rental market is not just about price but also about the quality of living spaces and community amenities. Many Denver apartments have luxury finishes, community fitness centers and pet-friendly policies, responding to the demands of a discerning renter population.
Denver’s undeniable growth
For landlords and property investors, the current rental market in Denver presents a promising opportunity. The city’s population growth, coupled with its economic expansion, suggests a continued demand for quality rental units. Investors can capitalize on this by offering well-maintained properties that cater to the lifestyle expectations of Denver’s diverse population.
However, potential renters must navigate this market carefully. It’s crucial to balance desires for location and amenities with budget constraints. Renting in the more affordable suburbs versus the city center can offer savings, and being flexible on amenities can lead to finding hidden gems that offer great value.
As Denver continues to evolve, the rental market is likely to keep pace, reflecting the city’s status as a hub of economic and cultural activity. For renters and investors, the key to success in this market will be staying informed and adaptable to the ever-changing landscape of this dynamic and desirable city.
Secure a sweet Denver apartment
Denver’s rental market in 2023 is full of options for city dwellers, with a price point that underscores the city’s attractiveness and economic vitality. Whether you’re is in search of a cozy studio or a spacious two-bedroom, Denver’s market demands careful consideration of what the city offers and at what cost, ensuring that residents can make the most of living in the Mile High City.
Ready to settle down in this gorgeous, mountainous metro? The perfect Denver apartment is only a few clicks away.
New York City’s crackdown on short-term rentals such as Airbnb and Vrbo has begun, and the effects are being felt throughout the industry and among travelers visiting the area.
The city adopted Local Law 18, which requires hosts to register with the city or face stiff fines, in 2022, but enforcement didn’t begin until September 2023. Experts say the change has already reduced the number of short-term rental units in the city.
“The available listings for less than 30 days have fallen by 33.7% year-over-year,” says Bram Gallagher, an economist at AirDNA, a short-term rental analytics platform. “There’s big movement there.”
The law specifically targets stand-alone properties — that is, properties where neither the host nor other guests are on-site. Experts expect such rentals to see the biggest changes in availability. Yet, the reduction in supply for stand-alone units could drive up demand for shared spaces and hotels, leading to a potential increase in lodging prices across the board.
That’s what Roger Tran, a city employee from Ontario, Canada, experienced on a September vacation to New York City.
“New York is always going to be expensive, but to my surprise, Airbnbs weren’t cheaper at all than hotels,” Tran says. “I was looking in Manhattan, Queens, Brooklyn, Jersey City. I didn’t mind commuting, but even there it was expensive.”
Though it’s too early to say how the new law will ultimately shake out in New York’s vast lodging industry, it’s clear that the tide is shifting away from short-term rentals and into other forms.
NYC supply has dropped, prices are rising
In the rest of the country, the supply of short-term rental properties has been steadily increasing for the last few years. The number of available listings in the U.S. rose 14.5% in September 2023 to more than 1.5 million units compared with the same time last year, according to AirDNA data.
In other words, New York City is running against the current nationally in terms of adding short-term rentals.
“Supply in NYC has been flat over the last couple of months, which is noticeable since the number of listings had been increasing prior to that,” said Melanie Brown, executive director of data Insights for Key Data, a short-term rental market data service, in an email.
AirDNA’s Gallagher says New York ranked third from last in October among the top 50 short-term rental markets in terms of demand growth. That was behind even Maui, Hawaii; Cape Coral, Florida; and Fort Myers, Florida — areas that have suffered recent natural disasters.
Even though bookings slowed over the same time period, reduction in demand hasn’t kept pace with the tightening supply. As a result, prices are increasing, with average daily rates up 23% year-over-year in September compared with a 17% year-over-year increase in July for shared and private rooms, according to Key Data.
Rooms in shared accommodations are not affected by Local Law 18, suggesting that an overall contraction in supply is pushing guests to seek other options, driving prices higher even for units not restricted by the law.
The landscape is changing quickly
Beyond the simple logic of supply and demand fluctuations, experts say the new law’s enforcement has changed how — and where — hosts list their properties.
For example, because the law requires permitting only for bookings under 30 days, some hosts are changing how they list their properties.
“We’ve seen a big switch over from short-term rentals to long-term rentals, which are 30 days or more,” Gallagher says. “New York City has had a lot of those, and now it has even more.”
That might make sense for hosts, but it keeps the total supply of short-term units available on these platforms relatively flat. And for guests looking for short-term rentals, this will mean fewer options to choose from when searching.
Also, because the restrictions apply only to New York City itself, the new law has led many guests to seek accommodations on the other side of the Hudson River.
“Interestingly, the number one demand growth area was Jersey City and Newark,” Gallagher says, noting that bookings in this region of New Jersey rose a whopping 61% in October 2023 compared with the same month in 2022.
And though it’s too early to tell, the reduced options and higher costs of short-term rentals in the city could drive some travelers to seek other options. That’s where Tran landed on his recent trip.
“I went for a hostel, which was the cheapest option,” Tran says. “It was great. I was a 10-minute train ride from Times Square.”
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
Looking to rent in a tight, competitive market or even a specific apartment community? A renter cover letter may not be required, but it could set you apart from the other potential candidates, increasing the odds that you’ll be the one signing that coveted lease.
Approaching the rental process as though you were vying for a coveted job — with a renter cover letter and resume — will leave a lasting positive impression and match the standards and criteria landlords have in place.
What to include
Much like the cover letter you’d send to a potential employer, a renter cover letter should showcase your best attributes for the landlord or property management company and let the decision makers know you’re the best choice among those presented, showcasing your professionalism and responsibility, two qualities landlords prize among tenants. It’s important to understand that a cover letter is supplemental to your required rental application, so only include information not listed in the application.
Property managers have a vested interest in choosing the most qualified applicants for their rental units, increasing the odds that the community rules will be adhered to, that the apartments will be well taken care of and that rent will be paid on time. Keep this in mind when writing your rental application cover letter, bragging and explaining your best qualities and attributes as a tenant is encouraged.
The Fair Housing Act prohibits landlords from discriminating against potential tenants on the basis of things such as race, religion, gender, disability, national origin and sexual orientation. However, they will pore over other criteria, including credit and employment history and the references they furnish, to make their decisions when filling vacancies with the ideal tenant.
If you have great credit and have been steadily employed, include it in your rental cover letter, along with things such as a positive rental history. Tell them who you are, but also who you aren’t. For example, if you’re applying with two other college students, you might be seen as irresponsible, inconsiderate or loud. Include in your cover letter — if it’s true — that you’re study-centric, not the type of people who would throw wild parties or play loud music. Showcasing hobbies that lend themselves to such traits like reading, gardening or volunteering for a local organization won’t hurt, either.
Renter cover letter template
Check out the below template as a baseline for your own renter cover letter, a foundation on which you can build. Simply fill in the information for sections in parentheses ( ), while the section in brackets [ ] is for your information, not to be included in the letter.
Download a Word document of the rent cover letter template
(Your Name) (Address) (City, State Zip)
(Landlord or Property Manager Name) (Address) (City, State Zip)
Dear (Name of landlord or property manager),
My name is (Your name) and I have a keen interest in renting the apartment you have available at (Property name or address).
I currently live at (Your current address) and have lived there for (XX) years. I am looking for a new place to live because (reason for moving: closer to home, closer to family, downsizing, etc.). I find your (apartment community/available unit/rental home) particularly appealing because (list specifically why you want to live in this property).
[The next two paragraphs apply only to potential tenants who will be utilizing an assistance program; omit if not applicable.]
While my current monthly income is $(X,XXX), I have been approved for rental assistance through the (name of your program). This program is funded by and administered by (the organization funding the program). A brief fact sheet about the program is attached to this letter.
Per the plan, I will pay (XX percent) of my monthly adjusted income toward rent, enabling me to make rent, in full, each month with no problem. (Program name) pays the remainder of my rent each month.
I believe I’d be a wonderful addition to your rental community — and here’s why. I am employed at (Your employer) and have been working there for (XX) years. In my free time, I (list some interests here and other things about yourself. For instance: play on the company softball team, coach your daughter’s soccer team, volunteer at specific organizations and enjoy hiking and baking. My current neighbors will miss my banana bread when I make the move to your community!)
I am quiet and friendly, a good neighbor who always pays bills on time. Attached you will find my renter resume, along with several references from neighbors and co-workers, as well as staffers from my current rental community.
If you have any questions, please don’t hesitate to call or e-mail me at (Your phone number) or (Email address).
Thank you very much for considering my rental application. I look forward to hearing from you.
Have everything ready to go
In addition to having all your paperwork in order, be sure to show up to view the rental property and furnish these documents on time and dressed appropriately. Don’t be afraid to ask questions, or answer them. First impressions count!
With these tips, tricks and templates, you’re ready to write your rental application cover letter to successfully prove you’re an ideal tenant who will pay rent, take care of a rental unit and keep a steady income. Good luck and happy renting.
The housing market in Boise is always evolving. As of the latest data, the Boise housing market presents a somewhat competitive landscape for prospective homebuyers, with houses receiving an average of two offers and being sold in around 21 days. This pace underscores a brisk but not frenetic market, allowing buyers some breathing room to make the right decisions at the right time.
The Boise housing market at a glance
A key indicator of market health, the median sale price of a home in Boise stands at $515,000, marking a modest year-over-year increase of 1.0%. This gentle price ascent reflects a market that is growing steadily, avoiding the pitfalls of sudden spikes or declines that can lead to instability.
Even more telling is the median sale price per square foot, which has seen a slight decrease of 3.8% since last year, possibly pointing to larger homes entering the market or a shift in the types of properties being sold.
The volume of sales tells a more nuanced story. In 2023, Boise saw 227 homes sold, a decrease of 19.8% compared to the previous year. This drop could reflect a variety of factors, including a potential shortage of inventory or a change in buyer sentiment. Nevertheless, the median days on market — a metric indicating how long homes are listed before a sale is agreed upon — has dropped from 34 to 21 days year-over-year, revealing that while fewer homes are being sold, those that are listed are moving quickly.
Competition in Boise’s housing market
Boise’s real estate market competitiveness is further clarified by the Redfin Compete Score™, which rates areas on a scale of 0 to 100, with 100 being the most competitive. Boise scores a 61, illustrating a market where homes often receive multiple offers but typically sell for about 1% below the listing price. Homes categorized as “hot” may sell for around the list price and go under contract in as few as 5 days, showcasing the desirability of certain listings.
Furthermore, the sale-to-list price ratio in Boise is 99.1%, up 1.2 points from the previous year, indicating that homes are selling close to their asking prices, a sign of a healthy market where there is a good balance between buyer demand and seller pricing.
Investing in Boise real estate
For those considering Boise as their next home or investment, these figures paint a picture of a market that is competitive but not overheated. The city’s real estate market is managing to keep pace with demand without succumbing to the volatility seen in other regions. This suggests a sustainable growth trajectory for Boise’s housing sector, making it an equally attractive proposition for buyers and investors.
Find a beautiful house in Boise
The Boise housing market is characterized by a stable yet competitive atmosphere, with homes selling relatively quickly and for near asking prices. While the number of homes sold has seen a downturn, the overall health of the market remains robust, reflected in the consistent sale prices and the competitive nature of listings. As Boise continues to attract attention for its quality of life and economic opportunities, its housing market is poised to maintain its steady course.
Renting in Boise
Turning our attention to the rental market in Boise, it also reflects the city’s broader economic trends and the influences affecting the housing market.
Rental markets in cities like Boise are typically influenced by several factors including the availability of housing, population growth and economic conditions. As home prices rise modestly, it can signal a corresponding shift in the rental market. Potential homebuyers who are priced out of purchasing may turn to renting, which can increase demand for rental properties and, subsequently, rental prices.
Average rent in Boise
In markets characterized by a competitive housing environment with rapid sales and close-to-list prices, rental properties often see high occupancy rates. Landlords and property managers may have the leverage to ask for higher rents, especially if the local economy is strong and the population is growing, which seems to be the case with Boise.
How the housing market affects the rental market
Additionally, when home sales decrease, as noted with the 19.8% year-over-year drop in Boise home sales, the rental market might absorb those who are waiting for the right time to buy or who prefer the flexibility that renting offers. This can lead to a decrease in rental vacancies, further pushing up rental prices.
However, it’s important to note that rental prices are also subject to regulatory changes, like rent control laws and the development of new rental properties, which can increase supply and potentially stabilize or lower rents.
Apartment rent ranges in Boise
$501 – $700: 1%
$701 – $1,000: 4%
$1,001 – $1,500: 29%
$1,501 – $2,100: 35%
Considering these factors, those looking to move to Boise should be aware of the potential for a competitive rental market. Prospective renters may face quick turnaround times on rental listings and should be prepared for a possibly dynamic pricing environment. Like the housing market, the rental market in Boise is likely to be resilient, reflecting the city’s economic stability and appeal as a growing urban center in Idaho.
Find the best spot for you in Boise
Those considering Boise as their home should weigh the pros and cons of renting versus buying in a market that is robust and thriving, with both sectors offering opportunities and challenges that reflect the city’s desirability as a place to live and work.
If you’re ready to settle down in Boise, find your home in just a few clicks with Rent.
Inside: Ever wondered how much rent you can afford on a particular hourly wage? Use the rent calculator to see what you can afford on $20 an hour. Find out from the experts in this guide.
Honestly, this is something most people don’t think about until after they get themselves in a troubling situation.
Determining rent affordability is paramount in your financial planning. It’s important to strike a balance between comfortable accommodation and fiscal responsibility to avoid financial strains down the road.
There exists a direct correlation between your income and the rent you can afford to pay. Higher income opens doors to pricier accommodations while lower wages might enforce budget constraints. Understanding this relationship is crucial.
It guides your housing decisions and helps maintain a stable financial footing.
By calculating your rent affordability, you can set a clear budget, establish your housing needs, and navigate the real estate market with ease.
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How much rent can I afford making $20 an hour?
If you make $20 an hour, based on a standard 40-hour work week, your gross income would come up to approximately $3,467 per month.
If you follow the 30% rule, this means you should allocate a maximum of $1,040 each month for rent.
$3467 x 30% = $1040
However, remember this is a rough estimate and your specific expenses and financial obligations should also be taken into consideration before deciding on a rent budget.
What Percentage of My Income Should Go to Rent?
This is a good question to consider.
Even better when you are trying to figure out how much to save before moving out.
The 30% Rule Explained
The 30% rule is a simple guideline suggesting that one should allocate no more than 30% of their gross (before taxes) monthly income toward rent.1
This rule of thumb has been widely adopted as a measure of rent affordability. The beauty of the 30% rule lies in its simplicity and ease of use, allowing for quick budgeting while maintaining room for other essential expenses.
Be Conservative and Stick with 20%
According to Money Bliss budgeting percentages, adopting a more conservative approach to budgeting by allocating only 20% of your income towards housing costs can be more beneficial.
If you follow the 20% rule, this means you should allocate a maximum of $693 each month for rent.
$3467 x 20% = $693
This strategy helps to account for additional expenses such as utilities, unexpected repairs, and other costs that often accompany home ownership or renting.
This reduced allocation promotes being smart with your money to avoid unnecessary financial stress.
When to Consider Stretching the 30% Rule
At times, it might be necessary to stretch the 30% rule particularly in high-cost areas or during short-term situations. It’s crucial, however, to understand the potential ramifications and adjust other spending habits to compensate.
A temporary overshoot could be justifiable if it leads to significant future benefits, like proximity to a well-paying job. Always remember, that this should be an exception rather than the norm.
How Does the Rent Calculator Work?
A rent calculator is a practical tool that aids in estimating the rent you can afford.
This simple calculator is based on your hourly income and spending either 20-30% of your gross income on rent.
Fine-tuning your budget is possible by adjusting the percentage you wish to spend on housing. Remember, the final number serves as a guide and may require adjustments based on your financial situation.
Breaking Down Your Monthly Budget
For savvy budgeters, adhering to the 50/30/20 rule can provide a clear framework for managing your expenses and growing your savings. While at Money Bliss, we went a step further to define it as the 20-50-10-20-0 budget rule. (save-basic expenses-give-fun spending-debt).
This approach gives a precise breakdown of your monthly budget, ensuring that you are living within your means while also setting funds aside for future financial security.
The basic 50/30/20 rule suggests dividing your monthly net income into 50% for necessities such as rent and groceries, 30% for personal wants like clothing or travel, and designating the remaining 20% for savings goals or debt repayment.
By adding these to your housing budget, you get a realistic picture of your monthly accommodation costs.
When budgeting for rent, one must account for other housing costs. These may include utilities like gas, electricity, and water, as well as internet, cable TV, and trash collection. You might also need to factor in the renter’s insurance and potential parking fees.
Essential Living Expenses
In addition to housing, remember to consider essential living expenses in your budget. These include food, transportation, health insurance, and childcare.
In addition, we advise our readers to put aside about 15-25% of their net income for savings. Accounting for these factors ensures you don’t stretch your budget to the limit solely on rent.
While you need to cover essential living expenses, it’s also important to allocate funds for discretionary spending – we call it FUN spending.
This category involves non-essential purchases like eating out, entertainment, vacations, and shopping. Using the 50/30/20 rule as a guideline, 30% of your net income can be put towards these wants, allowing you to enjoy your income while staying financially sound.
Factors Influencing Rent Affordability
There are many factors that impact how much you can spend on rent. As such, this will vary from person to person as situations vary. While these numbers are gross income, you need to realize the amount of money coming out for taxes. Many people don’t understand gross income vs net income.
Furthermore, the cost of living and rental prices in your chosen location can greatly impact how much you can afford. So, use the rent affordability calculator!
Location and Rent Prices
The location of a home greatly influences its rent prices. HCOL vs LCOL is a real thing!
Proximity to the city center, schools, parks, and shopping centers typically equate to higher costs. For example, renting trends in 2023 indicated an increase in prices the closer you get to these amenities.2 By choosing to live a bit further out, you may be able to find more affordable rent payments.
Areas with higher crime rates will have lower rents but these tend to come with more issues.
Size and Type of Housing
The size and type of your dwelling can also significantly affect your rent. Large houses with multiple rooms naturally cost more, whereas smaller apartments or studios are less expensive.
The type of housing also plays a role; for instance, a modern, furnished apartment might cost more than an unfurnished one. Tailoring your choice to your needs and budget allows for comfortable living without overspending.
If you have a pet, don’t forget it may cost more plus you have a pet deposit.
Lease Length Considerations
Lease length can directly impact your rent. Longer leases often equate to lower monthly rents, offering landlords a sense of security. On the contrary, short-term or month-to-month leases typically come with a higher price tag due to their inherent flexibility.
Assess your personal situation and potential need for flexibility before deciding on the lease term.
Also, the amount you need to put down as a security deposit can be negotiated.
Tips to Maximize Your Rent Budget
Plan your budget carefully taking into account factors like income, potential expenses, and the cost of living in your chosen location. So, if you are thinking $5000 is enough to move out, you may be surprised.
Use the 30% rule as a guide but be aware that in high cost of living areas, you may need to adjust this percentage. When searching for a rental, compare the cost and amenities of different apartments in your preferred areas and see if there are nearby neighborhoods with cheaper rental costs.
Also, you may need to embrace cost-saving measures such as cooking at home and shopping frugally to free up more income for rent.
You can learn more about those areas on our site.
Tip #1 – Reducing Costs and Saving
There are several ways to reduce housing costs and save more in this tough rental market.
Consider downgrading to a smaller place or moving to a less expensive area.
Negotiate a longer lease term for a reduced monthly rent.
Maybe even consider becoming a permanent housesitter to free up your budget.
Small changes can lead to substantial savings over time.
Tip #2 -Planning for Future Rent Increases
Each year when your lease is about to renew, always factor in the possibility of future rent increases, which could be influenced by trends in the real estate market and inflation.
Ensuring your income can keep up with these increases is necessary for maintaining affordability. Continually reassess your rent affordability, especially during annual lease renewals or job changes.
Tip #3 – Get Roommates
Sharing your space with a roommate is a practical way to cut down on your living expenses substantially. By having one or more people to share the rental costs, utilities, and even groceries in some instances, you are likely to free up a considerable portion of your budget.
However, it’s important to clearly set boundaries and expectations to maintain a smooth living arrangement.
FAQ on Rent Affordability
Spending more than 30% of your income on rent is generally not advisable. It risks leaving you cash-poor, having insufficient resources for other important expenses like groceries, utility bills, health expenses, retirement savings, or emergency funds.
However, in certain scenarios like living in high-cost areas or prioritizing proximity to work (thus lowering your need for a car), bending the rule temporarily might be justifiable. Always reassess your budget to account for flexibility.
Yes, an increase in your hourly wage can slightly affect the amount of rent you can afford. The raise translates to an increased monthly income, which may enable you to comfortably afford higher rent.
However, it’s important to ensure this does not erode financial stability because lifestyle creep is real. Aim to maintain the key balance between comfortable living and responsible saving.
It’s recommended to reassess your rent affordability annually or when there’s a significant change in your financial situation.
Such changes could be a raise or decrease in income, new financial obligations, or plans to save for major future expenses. Regular evaluations ensure your housing budget aligns with your current financial realities.
Is $20 an hour a livable wage?
Given the average rent in the United States is $1702, $20 an hour is not a livable wage, especially in San Francisco or New York. As such, the maximum you should be spending on rent is $1040.
If workers are unable to afford to live in the communities they work in, it puts the whole system under stress. While there have been movements to create low-income housing, it is slow to happen and for many, difficult to apply.
Ultimately, whether this wage allows for a comfortable lifestyle depends largely on your financial habits, commitments, and where you live.
With good financial planning, including a solidly crafted budget that factors in rent, savings, and living expenses, a $20 hourly wage can indeed cater to a decent lifestyle.
Remember to reassess your budget regularly and adjust as necessary to meet changing financial landscapes.
Making wise financial decisions now can lead to a financially secure future. Now, do you have the habits needed to be financially stable?
FiftyThirtyTwenty. “About.” http://fiftythirtytwenty.com/about.html. Accessed November 13, 2023.
Rent. “Rent Growth in Half of Suburbs Outpacing Metro’s Core City.” https://www.rent.com/research/suburban-growth-outpacing-core-city/. Accessed November 13, 2023.
Rent Cafe. “Average Rent in the U.S.” https://www.rentcafe.com/average-rent-market-trends/us/. Accessed November 13, 2023.
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The Dallas housing market is a nuanced picture of competition and change, mirroring the complex economic forces at play. As the latest figures roll in, analysts are keenly observing the subtle shifts that could signal the future trajectory of property values and market dynamics in one of Texas’ top cities.
Home prices in Dallas
In recent months, the Dallas housing market has been defined by healthy competition. The median home price has risen to an impressive $420,000, a 6.3% year-over-year increase, signaling sustained growth in property values. Each Dallas home, on average, garners two offers, with a median time of 33 days from listing to contract — a slight increase from the previous year.
Competition in the Dallas housing market
The Dallas housing market’s competitiveness is more than a matter of bidding wars; it’s reflected in the numbers across the board. With a 61 on the Redfin Compete Score™, the latest trends point to a market that’s competitive but not cutthroat. Dallas homes are being sold at a slight discount, typically around 2% below the listed price, with the sale-to-list price ratio sitting at 97.9%. However, some homes defy this trend, fetching around 1% above list price and transitioning to pending sales in a brisk 15 days.
Migration patterns to and from Dallas
These transactions take place against the backdrop of a dynamic migration pattern. The Dallas housing market is influenced not only by internal factors but also by the ebb and flow of people. While a fifth of the residents are exploring housing options outside the metro area, the vast majority remain committed to the Dallas market. The city has become a prime destination for buyers from coastal cities like Los Angeles and San Francisco, as well as New York, adding an influx to the local housing demand.
Environmental effects on the Dallas housing market
Environmental considerations are also shaping the Dallas housing market. Buyers are increasingly aware of the risks posed by natural occurrences. The average properties in Dallas face moderate flood risks and wildfire threats. On the other hand, wind and heat present major concerns, with nearly all properties in Dallas at risk over the next three decades.
Getting around in Dallas
The walkability, bikeability, and transit options in Dallas score 46, 49 and 39, respectively, out of 100. These figures highlight the necessity of a car for most residents, despite some available public transportation options and the developing infrastructure for cyclists.
Settle down in Dallas
The Dallas housing market remains a competitive arena where timing, price and environmental factors play crucial roles. The city’s real estate scene is a confluence of migration trends, market competition and infrastructure capabilities, all of which contribute to a market that is as challenging as it is rewarding for those navigating its waters.
Renting in Dallas
Shifting focus to the rental market, there are plenty of attractive options in Dallas for those not looking to buy. As of the latest figures, the rental market in Dallas presents a range of pricing, reflecting the variety and scale of the city’s neighborhoods and housing options.
Average rent in Dallas
The average rent for a studio in Dallas stands at $1,477, marking a 4% increase over the past year — evidence of a steady demand for these compact living spaces. For those seeking more room, one-bedroom apartments have seen a decrease in average rent, now at $1,371, which is a 5% reduction from the previous year.
This suggests a shift in the market dynamics, possibly driven by changing preferences or a supply adjustment. The average rent for two-bedroom apartments has also decreased by 4%, positioning the current rate at $1,862.
Image source: Rent./Sagemont
Dallas rent ranges
The rental ranges in Dallas illustrate a high-end market dominance, with nearly half of the apartments falling into the $2,101 and above category. This indicates a substantial segment of the market catering to more affluent tenants or those seeking premium amenities. Meanwhile, apartments priced between $1,501 and $2,100 account for 27% of the market, providing options for those with moderate to high rental budgets.
At the more affordable end of the spectrum, 18% of the apartments are priced between $1,001 and $1,500, aligning with the national median for similar urban settings. Notably absent are options below $700, which highlights a pressing shortage of low-end rental options in the Dallas market, a challenge for budget-conscious renters.
Your Dallas apartment awaits
These figures underscore a rental market as layered and dynamic as the city itself, with a range of options catering to different lifestyles and budgets. As Dallas continues to attract new residents from around the country and across the globe, the rental market is likely to continue reflecting the broader trends of the housing sector at large, with adjustments in pricing and availability that mirror the always-changing Dallas housing market.
Ready to settle down in your dream Dallas apartment? You’re only a few clicks away.