Do you feel like you’re paying too much for rent? Before I purchased a house, I felt like I was overpaying for my small apartment but didn’t have many options for lower rent. Nearly a year into the pandemic in the U.S., we’re seeing rent prices drop in many of the largest, most expensive cities.
Whether you want to find a lower priced apartment so you can have extra money to cover other expenses, or you want to save for a down payment on a home, now is a good time to find a more affordable rental. A recent study by Zumper found that changes in rent prices, from Jan. 2020 to Jan. 2021, dropped in many of the most expensive areas of the country.
The rental prices, reflected in the illustration above, compare the difference between 1-bedroom rentals in Jan. of ‘20 compared to Jan. ‘21 in some of the most popular U.S. cities. As you can see in the right hand column, rental prices have dropped over $800/month in some areas.
For 2-bedroom rentals, the price drop year-over-year is greater or nearly as impressive as for 1-bedroom units. In New York, for example, the average price drop was 22.4% for rentals. San Francisco saw a similar rental price drop of 22.2%. Imagine saving $300-$800/month on your rental payment! That’s a savings of $3,600-9,600 per year! If you’re considering buying a home, you could save for a down payment in record time.
Imagine saving $3,600 - $9,600 this year!
Some of the changes in rental prices are a reflection of renters fleeing overly expensive markets, like New York, as a result of the pandemic. As the number of renters in less expensive, nearby cities grew, prices dropped in cities known for high rent. Over time, renters might return to the previously overpriced cities and rental price would eventually stabilize.
Whether you’re living in San Francisco, where the biggest year-over-year rental price drop was, or in Raleigh, NC, where they experienced the biggest price drop last month, you’re bound to save money by switching to a lower priced apartment. Even if you have to pay a few hundred dollars to break your lease, you’ll come out ahead in a short period of time. Start your search for a more affordable apartment today and save big!