Rental Demand is Slowing Down

Feb 1, 2024 | Library

A popular topic with property managers nowadays is simply “are red hot rents finally starting to cool down?”

Here’s some insight as to what is happening out there…

RealPage has just reported that the third quarter was the largest drop in apartment rents since 2010.

WSJ reported that the decrease in overall rental demand was the worst of any third quarter in the past 30 years.

Over 50% of VRBO vacation rentals were purchased in the last 18 months and are now on a cooling trend and are converting from vacation rentals to leases.

The house selling market is flat, so owners are turning unsold homes into rentals.

So, with rents falling in 89 of the 100 largest cities in 2022 plus an increasing supply well into 2023, we can safely predict rents, regardless of property type, will cool down creating extended vacancy periods, competitive rent rates, and the need for quality cosmetic touches to attract more interest in 2023.

I hope this was helpful and feel free to reply with any questions you may have or call me at 949-209-9494 or visit GenuineManaged.com to learn more about us.

Marcel Ford
Genuine Property Management

* We are not attorneys, financial advisors, nor tax experts and the information above we deem to be accurate but is not guaranteed.