As part of the Rental Expert Series, Rental Beast created a 2023 Market Report, which includes 2024 market predictions, sentiments from property owners, and 2023 rental data. The program is designed to provide real estate professionals with valuable insights, data, educational content, and more to help them succeed in rentals.
In 2024, home prices are expected to remain flat or slightly decrease, with projections showing a downtick of less than 2%. Home sales are anticipated to slightly increase, supported by new construction, while existing home supply remains sluggish. Mortgage rates are predicted to range from 6% to 7%, and housing affordability challenges are likely to persist. Rents are expected to rise slightly, with some variations in projections, driven by high demand for rentals. The multifamily sector is a key focus, with an influx of new inventory potentially leading to increased concessions to boost occupancy.
In the last quarter of 2023, the sentiment among property owners regarding median rent indicates a cautious or stable outlook, with 75% expecting rents to remain the same through June 2024. Despite a competitive housing market, 26% of property managers report a decrease in rental applications.
Rental data for 2023 in 12 metropolitan statistical areas (MSAs) indicates a general downward trend in median rents for various property types throughout the year. Three-bedroom homes are still, on average, the priciest rental type, ending Q4 with a median price of $2,199. However, if you’re splitting the rent with roommates, it’s more affordable than a one-bedroom, which came in at $1,735 in the final quarter of 2023.
This snapshot of the 2023 residential rental market illustrates key indicators like average rent prices, days on market, and percentage change of available listings to provide insights into current trends and market dynamics:
Quarterly median and yearly average rent changes compared with percentage of listings with concessions:
In 2023, rental data shows consistent trends for rental listings with concessions. Colorado Springs led with the highest percentages throughout the year, reaching 48% in Q2. Atlanta also maintained relatively high levels, while Boston consistently recorded lower percentages. Overall, the national average in MSAs analyzed for rental listings with concessions in 2023 stood at 18%.
The Rental Beast 2023 Market Report is a critical resource for real estate professionals navigating the ever-evolving rental market. Sign up for the Rental Expert Series here to stay on top of the rental trends and get insights about the market.
