2024 Predicted to Be Good to Renters

By Kathy Rembisz

Rents continue to decrease and concessions are plentiful.

The year 2024 is expected to be a good year for renters. This is according to a report from Zumper, a privately owned rental platform in North America.

Rents have remained flat over the last month and there has been a jump in supply. As is often the case during the winter months, demand is currently lower in the rental market, too.
“Renters have more leverage right now than any time in recent memory; now is the time to renegotiate existing leases or score a deal on a new apartment,” said Anthemos Georgiades, Zumper CEO.

The median rent for a one-bedroom home is currently $1,496 and the two-bedroom average is $1,847. The one-bedroom median is up just three-tenths of a percentage point year-over-year, while the two-bedroom average has seen a larger increase at 1.4 percent. In general, rent prices are continuing to decrease since peaking in September 2023.
Supporting this downward trend is a drop in the one-bedroom average by a full percentage point since September 2023. In addition, the year-over-year change in one-bedroom rent has been under a percentage point for five consecutive months, with negative year-over-year growth last month. This is in direct contrast to the 12 consecutive months of double-digit growth the rental market experienced from October 2021 to September 2022.

The jump in national supply in the market has led to landlords offering concessions such as a free month’s rent or waived security deposit, a trend likely to continue. In addition, as interest rates begin to ease, the rental market might slow even more as additional first-time home buyers leave the rental market.

In general, rental prices are decreasing more rapidly across the Sun Belt. However, the Midwest continues to experience slow and steady rent increases.
In fact, many cities in the Midwest have seen ongoing increases in rents over the past several months, despite national trends. Currently, Cleveland, Milwaukee, Columbus, and Chicago are the cities with the largest year-over-year increases in rents. Overall, most of the Midwest cities are showing constant and predictable increases in rents due to modest changes in supply and demand. This is unlike the increases in rental prices that occurred in cities such as Miami.