After months of bad news for landlords about the steady downward slide of asking rents, a small bounce in February this year offers some reason for optimism.
The median 2.2% increase in year-over-year asking rents was the highest since January 2023 and up 0.9% from January this year. The upturn in February 2024 is even more welcome when compared to the preceding February when asking rents hit a low point – which may explain the uptick, according to a Redfin analysis. The Northeast and Midwest benefited most.
High mortgage rates may be another factor accounting for higher asking rents. As mortgage rates rise, many prospective homebuyers are being forced to keep renting, boosting demand and asking rents, Redfin noted. That could reverse if the Fed lowers rates later this year.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
