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Tenants should use the advantages of a cheaper rental market as long as they can. It couldn't take a while, experts say.
From December, the average inquiries from rental price in the United States in November was $ 1,695, 0.5% or 8 US dollars. The most recent rental price is 1.1% lower – or $ 18 – compared to a previous year and 3.7% compared to the top heights in July 2022.
The rental prices have dropped because newly built apartments increase the offer of the available units. With more inventory, some real estate managers have to consider reducing their prices to attract tenants.
“We call it a tenant market. We believe that this will continue for the next year,” Daryl Fairweather, chief economist at Redfin, recently told CNBC.
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But this tenant -friendly market is not forever.
According to experts, the tenant market could find out the tenant market after slowing down the apartment building after this year after this year.
“This construction boom will probably be over and the rents will probably be rising again,” said Fairweather.
What slows down the supply
“We see that apartment buildings slowed down a little,” said Joel Berner, Senior Economist at Realor.com.
There are several reasons for this. Since the rental prices are reduced, it is currently not “economically sustainable” or profitable to build apartments of apartments, said Berner.
There is also a measure of uncertainty about the current administration guidelines regarding tariffs and deportations, he said.
This week President Donald Trump imposed comprehensive tariffs for imports from China. He held the implementation of 25% tariffs in Canada and Mexico for at least 30 days.
In some cases, due to such political changes, the costs for builders increase, said Berner. Customs duties on wood and other materials let prices rise, while the mass deportation plans “smaller and more expensive,” he said.
According to the National Association of Home Builders, which analyzed 2022 census data, almost a third or 31%of the buildings in the USA in the USA were immigrants.
“Everything that threatens to disturb the flow of workers will send shock waves to the labor market in house construction,” said Jim Tobin, President and CEO of the Nahb, previously CNBC.
3 key movements for tenants
If you are currently on the rental market or want to start watching this year, you can take important steps here to maximize the affordability while it is still a tenant market:
1. Ask for a multi -year rental agreement to secure lower costs
If you are in an area in which the prices are reduced, you can tell your landlord or real estate manager that you want to sign a rental agreement for several years if he lowers the rental price, said Berner.
In such negotiations, it can be helpful to offer something in return, e.g.
The tenant turnover can be expensive for landlords, especially if the property is not occupied for a few months.
2. If you plan to buy a house, save now
“If you are a tenant who intends to become homeowners, this is a good time to save the rent,” said Berner – and then the difference for your deposit.
It is expected that the builders will be launched their priorities this year and build more houses on the market for the sales mark. Single-family house lessons are expected to be increased by 13.8% in 2025 and, according to Realor.com, a total of 1.1 million new houses.
Many tenants have difficulty creating prosperity in the United States and financial obstacles such as high rent Can stop potential buyers from finding enough money for a down payment.
If you manage to reduce your monthly rental costs, “they spoil cash for a down payment,” said Berner. “The larger your deposit can be, the better.”
3 .. Keep an eye on affordable markets elsewhere
It can be tempting to consider more affordable housing markets as ideal places to move to, but experts do not recommend that you uproot your life and career just because the rental prices in one subway fall over.
On the other hand, it can be helpful to stay up to date where the affordability is most improved.
For example, Austin, Texas, the Top -U -Bahn under Redfins is “the most affordable metros” or places where tenants usually earn more money than they need to afford the typical rental unit. The typical tenant in the region earns 69,781 US dollars annually, which is 25.14% higher
“Pay attention to how the market is changing into the market and where you know that it is running your money the farthest,” said Berner.