Our partners at ShowMojo have just released their 2024 Q2 Market Update, outlining trends and challenges in the current rental market. In a nutshell, they describe “Longer market times, fewer leads, and more rent reductions.”
We’ve included the key takeaways below, along with what’s working now…
Market Times Continue to Go the Wrong Way
Based on market times, this is the worst March rental market since the start of our records (2017). Compared to 2023 and 2022, this March’s market times were 5% and 36% longer, respectively.
Unfortunately, this isn’t new. Starting in June 2023, on-market times have remained historically high.
Leads per On-Market Periods Are Near Historic Lows
Leads per on-market period are another good indication of how active the rental market is. And here, the story is unchanged. In terms of leads per on-market period, this is the worst March we’ve ever seen (again, dating back to 2017).
Compared to 2023 and 2022, during March 2024, leads per on-market period were 8% and 24% lower, respectively.
Owners and Managers Still Playing Catch-Up
If you want something to celebrate about this market, this is the best we can do: For the first time in 17 months, we haven’t hit a record high in rent reductions.
In March 2024, rent reductions were 1% lower compared to March 2023.
Zooming out even slightly, this one percent year-over-year reduction is cold comfort. For every one of the past 17 months before March 2024, year-over-year rent reductions had increased.
And compared to March 2022, rent reductions in March 2024 were 47% higher.
Bright Spots and What’s Working Now
Fortunately, much of this is old news as we’ve been in an adjusting market for some time now. Although the rental market is slower today, it is on the heals of red hot market that lasted for years and was due for a calm down. Here at Rentals America, we’ve also seen an uptick in leasing activity over the past several months indicating a stabilizing landscape. Our recommendations for navigating the market today are:
Pricing: Adjust rental prices on listings every 7-10 days. Getting the property rented is the top-priority, and a better rental rate may be possible at lease renewal.
Pets: Yes, allowing pets is important. Most tenants either have pets or plan to have pets in the future. Offering an accommodative pet policy will make your listing appealing to a much larger audience.
Incentives: In some cases, offering a move-in special can help seal the deal. We generally recommend focusing on competitive pricing first, but incentives are another good tool in a slower market.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management, and we’re here to help landlords navigate the rental market.
