Rising rent prices starting to slow down
BIRMINGHAM, Ala. (WBRC) - Rising rent prices are starting to slow down in some areas, according to experts.
For the last nine months, experts have seen rates slowing, which means not everyone is dropping rent just yet, but there are signs it’s moving in the right direction.
Brian Tunnell, CEO RentMonster, said month-to-month rent growth is flat right now, and they are seeing a 3.6 percent annual rent growth for next year.
“2010, 2011, 2014 and 2015 those were all years that had annual rent growth higher than that,” Tunnell said. “So, although not as great as we might ideally want, we are looking at 2023 being a pretty normal year in terms of rent growth.”
So the rate of growth is getting back to what experts consider to be normal.
“That’s exceptionally good news when you consider unemployment to be at all-time lows, the labor market is very tight, and wages are strong, so people have more buying power than they did,” Tunnell said.
Which means more people will hopefully be able to afford better housing.
With that being said, if you are looking to move, experts say don’t go over 1/3 of your gross income, plan ahead, and start early when it comes to your search for a new home.
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