Of the more than four hundred rental markets tracked by Zillow, only fourteen saw rental prices for single-family homes fall between January and November. Many of these metro areas are small and home to populations under 100,000. In other words, they may not be the most attractive options for those looking for a more urban option.
Rental markets where prices have fallen
- Terre Haute, IN: -2.2%
- Monroe, LA: -2.0%
- Tyler, TX: -1.8%
- Fairbanks, AK: -1.8%
- Sierra Vista, AZ: -1.6%
- Hattiesburg, MS: -1.4%
- Hinesville, GA: -1.3%
- Lake Havasu City, AZ: -0.9%
- Ellensburg, WA: -0.9%
- Heber, UT: -0.9%
- Santa Cruz, CA: -0.9%
- St. Marys, GA: -0.7%
- Hickory, NC: -0.3%
- Salisbury, MD: -0.2%
One of the cities that made it to the list is Santa Cruz, California, which is situated near the beach. Although the rental prices have fallen slightly from $4,050 to $4,014 since the beginning of the year, it does not necessarily mean that the cost of a lease has become affordable.
Moreover, even though there were some markets where prices fell, the decrease was not significant. This highlights the immense pressure the housing sector has put on households across the country, driving up the costs. As mortgage rates increased, the supply of houses on the market began to fall, driving up prices.
Especially for renters, who are at the mercy of landlords, their purchasing power can decrease rapidly if they have to sign a new lease at a substantially higher level than what was offered previously.
