Rents Are Starting to Plummet in These 9 Major U.S. Cities
Housing is getting more affordable due to "pandemic pricing" in these big cities.
It's hard to find an upside to just how badly the coronavirus pandemic has cratered the U.S. economy. But amid all the job loss and halted industries, there does appear to be at least one silver lining: much more affordable rent prices in many cities across the country. According to the rental listing platform Zumper, which analyzed monthly changes in rental markets across the nation, all of the top 10 most expensive cities either had flat or declining rent prices.
In a blog post that explains the rental dip, Zumper's rental trends reporter Crystal Chen notes that it appears that "the pandemic has shifted the demand for apartments away from the most expensive cities." She adds that "usually, demand picks up as we head into summer but now the opposite is true."
Chen goes on to note that since many companies are turning to remote work, renters "don't want to pay the big city price tag when they are unable to use the amenities and are looking for more affordable options outside of large, metropolitan areas."
With many people either losing their jobs or working from home due to the shutdowns, some tenants have chosen to leave their apartments behind in major U.S. cities. So, as landlords react to the economic fallout, rental rates are dropping, which some real estate professionals are referring to as "pandemic pricing." Read on to see where exactly rent prices are plummeting. And for more on what's gotten less expensive thanks to COVID-19, check out These Items Will Be Cheaper After Coronavirus.
San Francisco, California
San Francisco is the most expensive place to rent, but according to Zumper, the center of the Bay Area has continued to see falling prices, with one-bedroom rents dropping to $3,360 last month, the lowest price the city has seen in over three years. On a year-over-year basis, one-bedroom rent is down over 9 percent. And for more on how California is handling COVID-19, check it out here: States Are Banning This One Type of Face Mask.
New York, New York
New York City saw one-bedroom rents remain mostly flat at $2,950, dropping only 1 percent since last year. But two-bedrooms declined 2.4 percent since last year to $3,220—not a huge dip, but it's a move in the cheaper direction.
The average Boston one-bedroom rental price dropped 2 percent since last month to $2,450, while two-bedrooms stayed flat at $2,900. And for more on Massachusetts and the pandemic, check out The 10 States With the Strictest Face Mask Laws.
San Jose, California
Prices also headed downward in San Jose, with one-bedroom rent falling 1.6 percent since last month to $2,420, while two-bedrooms were down 3 percent to $2,950.
Salt Lake City, Utah
The Utah state capital saw the largest monthly rental decline in the country, with one-bedroom rent falling 4.8 percent to $1,000. That also marks a 6.5 percent drop since this time last year.
The largest city in Wisconsin saw one-bedroom rent fall 4.7 percent in the past month, settling at $1,010. And for more up-to-date information, sign up for our daily newsletter.
Similarly, one-bedroom rent dropped 4.6 percent to $1,040 in Fresno in the past month, though it's still up 4 percent from last year.
One-bedroom rent in Anchorage fell a whopping 4.2 percent to $910, both month-over-month and year-over-year. And if you're curious about Alaska's COVID-19 numbers, check out These 5 States Are Headed for Another Lockdown, Virologist Says.
One-bedroom rent decreased 3.7 percent last month to $780 in the Florida state capital, while two-bedrooms were down 1.1 percent to $920. And to see how Florida is faring amid coronavirus, check out 6 States That Just Set Their Daily Record of New Coronavirus Cases.