RENTING in the US is getting cheaper or more expensive, depending on where you live.
That’s according to new research which has found the US rental market is experiencing a regional divide.
Realtor.com chief economist Danielle Hale says a regional divide is emerging in the rental market[/caption]
Southern cities including Nashville and Dallas have seen some of the largest falls in rents[/caption]
Realtor.com’s September Rental Report found rents in the Midwest are rising while southerner rents are declining.
Rents grew fastest in Cincinnati, St. Louis, and Minneapolis, while the fastest declines occurred in Nashville, Dallas, and Austin, Texas.
Realtor.com chief economist Danielle Hale said housing supply and demand was one of the most influential factors on rental affordability.
“The balance between housing supply and demand is a key factor shaping regional rent patterns,” Hale said.
“In markets across the South, increased multi-family inventory is easing competition among renters and driving down prices.
“On the other hand, in the Midwest, where demand has still outpaced supply, we continue to see rising rents.
“Nationally, the relative stability in rent prices should translate into slower shelter inflation in the months ahead, easing one of the biggest recent drivers of price increases.”
While rents are dropping in many parts of the country, eight of the 10 midwestern markets saw year-on-year rent increases in September.
Cincinnati grew the fastest at 3.4%.
This was followed by St. Louis (2.6%) and Minneapolis (1.9%) also ranked among the top 10 fastest growing markets.
Only Chicago (-2.6%) and Detroit (-0.3%) experienced rent declines.
According to the new research, southern metros dominated the list of markets with the largest annual rent drops.
Eight of the top 10 metros with the steepest declines were in the south.
Nashville, Tennessee, saw the sharpest decline (-4.8%).
Other Southern cities on the list include Dallas; Austin, Texas; Birmingham, Ala.; Memphis, Tennessee; Atlanta; Miami; and San Antonio.
The rapid growth of new multi-family housing in these areas is cooling the market, providing much-needed relief for renters.
RENTS TIED TO RATE CUTS
The new research comes after The U.S. Sun revealed projections from economists that housing costs would drop in three months due to the Federal Reserve’s move to slash rates.
The new projections come after the Federal Reserve cut interest rates by half a percentage point last month, a move that will affect millions of Americans and marked the first time the central bank has cut rates since 2020.
The rate cut is designed to regulate inflation, which economists say will stimulate the economy and make things more affordable for consumers.
Housing experts said that while the rate cuts will take some time to work their way into the economy, the rate-cutting cycle will likely put downward pressure on the cost of living.
Housing experts said a federal rate cutting cycle will bring down the cost of construction and encourage more development which in turn increases the supply of houses.
