PORTLAND, Ore. (KOIN) — The pandemic-era competitive housing market caused the cost of rent to skyrocket nationwide, but those in the market to rent a new home may finally see some relief.
One study shows that the average rent increases have slowed in several cities in the U.S., Portland included.
According to residential real estate brokerage Redfin, rental property’s increasing supply and decreasing demand have started to put a halt to the price of rent’s upward trend.
“Demand has slowed due to still-high costs (rents remain 22.5% higher than they were in January 2020), inflation, widespread economic uncertainty, and slowing household formation,” Redfin said. “Rental supply has grown due to an influx of construction in recent years, as well as a recent increase in the number of people opting to rent out their homes instead of sell.”
The brokerage used data from Rent to compare January 2022’s median rent prices to those from January 2023. It found that rent in the U.S. grew by 2.4% to $1,942 in a year, which it reported as the country’s smallest boost in 20 months.
Redfin also reported the year-over-year difference in rent prices across 50 of the U.S.’s biggest cities. According to the data, the Portland metropolitan area’s median rent was $2,485 in January 2023 — just a 1% increase from the prior January.
This marginal difference could signify more affordable property for Portland renters. And just a few hours away in Seattle, renters are seeing a decrease in the median asking rent — although the cost is still higher than that in Portland.
The data shows that median rent in Seattle was $2,764 last month, a 1% decline from January 2022.
Seattle renters aren’t the only ones seeing a drop in prices. Phoenix had the biggest decrease throughout the U.S., with its median asking rent declining by 6.7% in just a year. Cities like New Orleans, Houston and Chicago also saw a drop.
“If rents do start falling on a year-over-year basis, it will mean that renters have more room to negotiate,” Redfin Chief Economist Daryl Fairweather said. “It may also prompt more landlords to sell their properties because they’re no longer getting a good return on their investment.”
However, there are still plenty of Americans who won’t be celebrating slowing rent prices any time soon.
In Raleigh, N.C., the cost of rent spiked by 22.5% to $2,119 per month. This was the largest increase nationwide, with Cleveland and Indianapolis rounding out the top three.