Looking to move? Rents are dropping the fastest in these cities
Itching to move to the big city? Now may be your chance.
Rents are falling in some of the country’s most desirable cities, including New York, Seattle, Chicago and Boston.
So much so, that it fueled nationwide rents to decline year-over-year for the first time in more than six years, according to a new report from Zillow.
While the biggest declines were seen in Portland, Oregon, where rents fell 2.7 percent, and in Seattle, where they fell 2.2 percent, cities like New York and Chicago saw a 1.9 percent drop this year.
However, some markets, such as Riverside and Sacramento, California, are continuing to see rising rents. Riverside rents, for example, are up 3 percent from last September.
According to the report, the median U.S. rent is $1,440, down 0.2 percent or $36 from last year, which is the first nationwide decrease since July 2012. Overall, rent appreciation has slowed for seven consecutive months before turning negative in September.
What’s more, home price appreciation has also slowed in September, growing 7.6 percent from the year prior to a median of $220,100. In August, home values rose 7.8 percent annually.
"With slowing rents and home value growth, searching for a new home should be somewhat less competitive than it was a year ago, giving renters and buyers a bit of breathing room,” Aaron Terrazas, Zillow senior economist, said.
Terrazas adds that while rents remain high by “historic standards,” September’s modest decline should “ease some of the pressure pushing higher-income renters to buy.”
“And though home value appreciation is slowing, homes are more expensive than ever, making it difficult for first-time buyers to save for a down payment to break into the market,” he noted.
Here are the top five cities that saw the biggest percent decline in September year over year.
1. Portland, Oregon
Rent change: -2.7 percent
Rent index: $1,833
2. Seattle, Washington
Rent change: -2.2 percent
Rent index: $2,169
3. New York, New York
Rent change: -1.9 percent
Rent index: $2,370
4. Chicago, Illinois
Rent change: -1.9 percent
Rent index: $1,635
5. Philadelphia, Pennsylvania
Rent change: -1.7 percent
Rent index: $1,566