• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

A U.S. construction boom is sending rents lower and creating perks for renters

by August 14, 2024
written by August 14, 2024

A construction boom in the U.S. has resulted in lower rents and other benefits for renters.

Record-construction activity since the pandemic has increased the supply of empty units, meaning more inventory is available for renters. More multi-family units were completed in June than in any month in nearly 50 years, according to Zillow Group, an online marketplace for real estate.

Landlords are taking notice and are now adding rent concessions — discounts, incentives or perks to attract new renters — like free weeks of rent or free parking. 

About a third, 33.2%, of landlords offered at least one rent concession in July across the U.S., up from 25.4% last year, Zillow found.

Meanwhile, the median asking rent prices for all bedroom counts slid in July, the first time that’s occurred since 2020, according to Redfin, a real estate brokerage site.

The median asking rent price for a studio or one-bedroom apartment fell 0.1% to $1,498 a month; two-bedroom apartments decreased 0.3% to $1,730; and units with three bedrooms or more, were down 2.% to $2,010, per Redfin data. 

Rents are still high because of how much prices climbed during the pandemic, said Chen Zhao, who leads the economics team at Redfin. But now, rent growth has flattened, which can be “good news for renters,” she said.

Metro areas in Florida and Texas, two Sun Belt states that have introduced a high number of newly built apartments since the pandemic, are seeing significant rent price declines as more units become available, according to Redfin.

For example, the median asking rent price in Austin, Texas, dropped to $1,458 in July, a 16.9% decline from a year prior, according to Redfin. It was the biggest drop among all other analyzed metro areas in the national report, the firm noted.

The median asking rent price in Jacksonville, Florida, declined 14.3% in the same timeframe, to $1,465, per Redfin.

To compare at a state-wide level, the median rent price in Texas stands at $1,950, according to Zillow. The median rent price in Florida is $2,500, the marketplace found.

Rent concessions are up from a year ago in 45 of the 50 largest metro areas in the U.S., according to Zillow.

The annual increase in the share of rental listings offering concessions is the highest in Jacksonville, Florida, which saw concessions rise 17 percentage points, followed by Charlotte, North Carolina (up 15.7 percentage points), Raleigh, North Carolina (up 14.7 percentage points), Atlanta (up 14.5 percentage points); and Austin, Texas (up 14.1 percentage points), per Zillow data.

Historically, wage growth and rent growth have been very linked, said Orphe Divounguy, a senior economist with Zillow’s Economic Research team.

How tight the labor market is can be predictive of how tight the housing market is going to be, he explained.

The labor market is winding down as the amount of candidates outnumbers the amount of jobs available. In July, nonfarm payroll increased by just 114,000 for the month, down from 179,000 in June, according to the Bureau of Labor Statistics. The unemployment rate jumped to 4.3%, the highest level since October of 2021.

“When wages are rising rapidly, that helps to support housing demand,” said Divounguy. “As the labor market loosens, we expect the rental market to continue to loosen.”

Wages are growing 4% to 5% year over year, said Zhao: “That’s good. That means that rents are actually falling relative to wages. Your wages are increasing more than rents are.” 

To be sure, wage growth has slowed down. Wages and salaries increased 5.1% in June for the 12-month period ending in June 2024 and increased 4.7% a year ago, according to the Bureau of Labor Statistics. 

Wage growth peaked at 9.3% in January 2022, and has slid down to 3.1% by mid-June and returning to pre-pandemic wage levels, according to Indeed Hiring Lab Institute.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Mideast oil powerhouse bans Russian ‘shadow fleet’ vessels that seek to undermine sanctions
next post
Walz responds to network’s vice presidential debate invite

related articles

Paramount acquires Bari Weiss’ The Free Press, naming...

October 7, 2025

YouTube to pay $24 million to settle Trump...

October 1, 2025

Charlie Javice sentenced to 7 years in prison...

October 1, 2025

Video game maker Electronic Arts to be acquired...

October 1, 2025

Nearly 200,000 BMWs recalled over potential fire risk

September 30, 2025

Trump says U.S. will impose new tariffs on...

September 29, 2025

Former Fed chairs warn that removing Lisa Cook...

September 27, 2025

Amazon to pay $2.5 billion to settle FTC...

September 27, 2025

The charm of watching movies in theaters is...

September 25, 2025

Ben & Jerry’s co-founder resigns, claiming parent company...

September 18, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump team dismisses reports he will discharge trans in military: ‘No decisions on this issue have been made’

    November 29, 2024
  • Abortion pill mifepristone sparks new pro-life debate as some doctors stress safety concerns

    February 4, 2025
  • House GOP charts roadmap to ‘Make America Healthy Again,’ cites healthcare system impact on ‘national defense’

    January 22, 2025
  • Trump says ‘real chance for greatness’ as Netanyahu White House meeting looms for Gaza talks

    September 29, 2025
  • Trump charges ahead with agenda in week 10 as judges try to block his executive orders

    March 24, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,285)
  • Investing (634)
  • Stock (936)

Latest Posts

  • Europe markets open: Gains expected after Trump walks back Powell dismissal, trade hopes rise

    April 23, 2025
  • EURGBP and EURCHF: EURCHF continues to rise today

    August 15, 2024
  • Failed VP candidate Tim Walz skewered after hinting at potential 2028 presidential run

    March 4, 2025

Recent Posts

  • Trump unleashes US nuclear renaissance with bold executive orders

    May 24, 2025
  • McKinsey & Co. to pay $650M to settle opioid consulting probe, ex-partner to plead guilty

    December 16, 2024
  • Shutdown fears move House Republicans to protect military paychecks

    September 19, 2024

Editor’s Pick

  • Benjamin Netanyahu comes to defense of Elon Musk: ‘falsely smeared’

    January 23, 2025
  • Chip Roy says voters ‘don’t give 2 flying s—s’ about government shutdown fight

    September 3, 2024
  • New 6-figure ad touts Trump policies that have key industry ‘booming’: ‘You voted for it’

    April 8, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock