Depending on where you live around the country some rental markets have been hit hard by the pandemic. Apartment Guide’s report looked at The State of The Rental Market. As we move into the fourth quarter Brian Carberrry, managing director at Apartment Guide provides an update. “Generally, at the end of the year, rent prices are lower than the hot times during the summer. I’d expect that trend will continue, but since prices were already down in many markets this summer, that traditional drop might not be as evident as in years past,” Carberry explains. Carberry sees “an overall trend that expensive prices are coming down. There is a higher demand for more affordable rentals than luxury properties. Now you are seeing these new luxury buildings coming down in price to get those units rented.”
Here’s a look at some of the trends from the report. Apartment Guide compared “rent prices for a studio, one-bedroom, and two-bedroom apartments to determine which areas of the country or cities are becoming more expensive or more affordable for renters.” The national trend for two-bedroom apartments in 2020 was just below $1,900 a month. Consider these are 2020 national averages. Surprisingly, the rent on a studio at nearly $1,700 came in higher than a one-bedroom at just above $1,600. The trend for co-living spaces declined possibly due to COVID.
Consider that “national studio rent prices increased by 4.23% (or nearly $70) when comparing June 2020 to January 2020. Studio apartments being in favor track declines in one-bedroom rental prices. Hawaii led the list of the top ten states for one-bedroom rent decreases between 2019 and 2020’s second quarter. Historically Hawaii has retained one of the top spots for the high cost of living. Other states ranking in order on that list include Wyoming, Kansas, Utah, Montana, Oregon, North Carolina, Connecticut, Maine, and Alaska.
If living in the Aloha state appeals to you here are some one-bedroom apartments for rent around Honolulu. Despite leading the state rankings in one-bedroom rent decreases, Honolulu rents remain somewhat pricey. An older 592 square-foot apartment close to downtown is listed at $1,600 a month. If you want luxury, a one-bedroom alcove apartment at The Residences at Bishop Place a 25-story tower just blocks from The Honolulu Academy of Arts you’ll pay at least $1,915. Community amenities include a clubhouse and business and fitness centers and a swimming pool.
Carberry sums up the current rental market for 2020. “This is definitely a unique year, and we’ll be closely watching to see what impact COVID-19 and the election will have on the economy and rent prices over the next few months.”
If you are in the rental market and able to wait a few months to move the rental landscape may offer the potential to secure a good deal. Carberry’s advice to buyers. “You may be working remotely and now can look in areas you would not have before. Be willing to ask for incentives and don’t be afraid to negotiate. You can ask for anything from free parking and utilities to flexibility on lease terms. The worse thing that can happen is the owner will say no. As the renter, you now have the power.”
Words to live by for renters.