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Renters Less Willing to Dig Deep for Digs

Gone are the days when apartment tenants will pay a premium to live in a high-end unit.

By Sule Aygoren Carranza | Updated on July 14, 2009

NOVATO, CA-Much to the disappointments of landlords, the days when renters will pay a premium to live in a high-end apartment seem to be over–at least for now. According to a national second quarter study by RealFacts, multifamily tenants are resisting the lure of expensive, high-end units.

Lease prices fell in nearly every market in the country between April and June, with an average decline in asking rents from $978 per month in the first quarter to $968 in the second. Areas including Tampa-St. Petersburg, FL, Kansas City, MO and San Antonio, TX, were minor exceptions, however, with modest upticks ranging from 0.6% to 1.2%.

The hardest hit markets during this period were ones with high concentrations of luxury properties, mainly in California, where apartments rent for an average of $1,000 per month. The San Francisco Bay Area, which is possibly the most expensive place to live in the US, saw its rents fall once again, following a similar drop in the first quarter.

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