Via ABODO, an apartment hunting service, here’s a chart/map thing showing changes in rent prices from different US cities. Minneapolis and Saint Paul are both in the list of leading decliners:
It’s a “small sample size” to be sure, but here’s what the ABODO blog has to say:
Two questions facing the rental industry are – how much longer that building boom will continue, and will eager developers deliver more supply than the market can absorb? Generally, the answers to those questions varies on a case-by-case basis and requires drilling down into the unique dynamics of each market or submarket. However, there are some signs emerging that developers may need to pull back on the reins in some metros. The new supply may be getting slightly ahead of demand as evidenced by vacancies that edged slightly higher in fourth quarter to 4.4%, according to Reis Inc. Student housing rents in some high growth metros, such as Minneapolis and Denver, also dipped slightly lower in January, according to ABODO. That decline could likely be attributed to a short-term impact from the lease-up that is occurring among the newly completed projects in those markets.
The impact on the overall market is something to keep in mind when you glance up at new construction.
Is there a seasonal ebb and flow in rents here? I feel like winter time would always lead to lower asking prices because not as many people are generally locked into leases that expire this time of year so the competition is a little bit more desperate maybe?
Yeah I’d be interested to see the change from August to September if we’re using such a narrow time range. And from one month to the next seems wayyy too small to get any real insight, especially since rent increases tend to happen when leases renew or when someone moves out.
I thought this might be the case last year when I was apartment searching (I was able to move in either June or September – prime moving months). I was looking at units earlier to get an idea of pricing (but figured prices would go up). But in many ways, prices went down as the months got warmer, at least in the range I was looking at. Perhaps it has something to do with more competition?
I have seasonal suspicions as well. If rents are seasonal, then a 2 month comparison has little value compared to a 2 year comparison.