Across the nation rental markets are heating up. While this is great news for investors and landlords, it’s becoming a hard pill for renters to swallow as they look for a new apartment or home to rent.
Landlords no longer need to offer freebies or special amenities to woo their tenants. According to HotPads, Zillow’s rental website, just 1 in 100 rental listings currently show any kind of move-in special or incentive. This is an almost 30% decrease from last year. Again, great for the landlord or investor, not great for the renter.
In addition, as the incentives for potential renters decrease, they can also expect to see higher rates. As homebuying has started to cool off across the nation, demand for apartments and rentals has started to increase and landlords are able to charge a premium for their rentals. Simple supply and demand. As of May, rent prices are up 3.1% from a year ago with a median rent of $1,530 (HotPads).
One caveat to this is if your budget is on the higher end of the spectrum. “Renters are also still likely to see concessions in that market, where supply is more plentiful nationally.(CNBC)” Over the past five year, development has increased dramatically in that sector as it is more profitable due to higher costs for land, labor and materials.
Of course, all real estate is local and varies on the market in your city. However, in Indianapolis, the average increases are right along the national average of 3.1%.