Rent Drops 10% to 20% In One Year

This winter, the market is over saturated with rental properties with 5 times more inventory than last year. As a result of that, the market rent drops from 10% to 20% depending on the area.

The followings are two main reasons why we are experience such a rapid surge of rental inventories.

1. Due to the rapid housing price decline in the past year, a lot of sellers decided to rent their houses out instead of selling them. By doing so, it creates a huge number of rental inventories.

2. A lot of renters with good credit who sold their houses at the heights of the market decide to make a purchase now instead of continue renting since market price has drop as much as 45%. Because of that, we see a large shrinkage of quality renters with good credit and also the increase of available rentals.

Because of the large increase in inventory, landlords are cutting prices to attract potential renters. That is why we are seeing a huge price drop in rent.