If you’re renting right now, things might finally be swinging in your favor. According to a recent report by Realtor.com, the median asking rent across the U.S. as of December stands at $1,695. This marks a slight dip of 0.5%, or $8, from November. Compared to a year ago, that’s a 1.1% drop, or $18 less, and a 3.7% decline from the peak we saw back in July 2022.
As Daryl Fairweather, chief economist at Redfin, puts it, “We’re calling it a renter’s market.” This shift towards a more renter-friendly environment is largely due to a surge in new apartment buildings developed during the pandemic. Fairweather explains that many of these projects, initiated in 2021 and 2022, are still reaching the market. This influx of new units is prompting some property managers to consider reducing their prices to attract tenants, giving renters more leverage in lease negotiations.
Fairweather believes we’ll continue seeing this trend for at least the next year. However, it’s important to note that newly constructed apartments are more concentrated in some areas than others, and this variation causes rent prices to drop more significantly in certain regions.
Take Austin, Texas, for instance. As of December, the median rent there was $1,394, down from $1,482 in August. This decline follows a construction boom, with Austin experiencing some of the highest levels of multifamily housing development in recent years. As supply increases while demand levels out, rent prices in Austin are likely to keep dropping.
What this means for you as a renter largely depends on your local market dynamics or where you plan to move. Here are three steps to consider if you’re navigating the rental market this year:
### 1. Research Local Rent Prices
Start by looking into what similar units in your area are renting for. This comparison is your best tool in negotiating with your landlord, says Fairweather. If your landlord is looking to raise the rent, you can present this information as evidence that an increase may not be justified—or that your rent should even go down.
### 2. Negotiate Additional Fees
Don’t just focus on your rent; consider all other fees you have to pay, advises Fairweather. These could include charges for parking or access to amenities. Fees can range from a modest $30 monthly for basic services to one-time fees between $200 and $500. If you see ads for properties offering concessions like waived parking fees, use that as leverage in your negotiations.
### 3. Consider Shared Living Arrangements
If you’re in a particularly expensive area, consider sharing a larger unit. This is a time-tested method to reduce housing costs and is becoming more feasible as prices for larger units aren’t rising as fast as those for smaller ones. Berner suggests exploring options like a three-bedroom apartment to split between housemates for a better deal.
All in all, these strategies could give you more bargaining power in today’s rental market, potentially leading to savings or at least a better living situation for your money.
