Renting Benefits in Sun Belt Cities

In a notable shift for renters, Sun Belt cities are experiencing significant decreases in monthly rental costs, primarily due to an oversupply of apartments. States like Texas and Florida have seen a surge in apartment construction since the pandemic, leading to a favorable environment for renters seeking deals. Data from Zillow indicates that over half of rental properties in cities such as Raleigh, Charlotte, Atlanta, and Austin are now offering incentives, including free weeks of rent, to attract tenants. Austin has recorded the most substantial drop in median asking rent, with a 16.9 percent decrease year-on-year as of July, according to Redfin. Jacksonville follows closely with a 14.3 percent decline, while Tampa rounds out the top five cities with a 5.9 percent drop. This trend marks the first time since June 2020 that average rents across all bedroom counts have fallen, indicating a broader market adjustment. Notably, rentals with more than three bedrooms saw a 2.4 percent decrease, attributed to increased supply and lower demand for larger units. Experts suggest that while construction is slowing, making it likely that prices will eventually rise again, now remains an opportune time for renters, particularly families seeking larger accommodations. In Atlanta, for instance, over half of rental properties are offering concessions, reflecting a competitive market. Zillow's chief economist, Skylar Olsen, emphasizes that while rents are still increasing, the pace is significantly slower than the steep hikes seen in previous years, providing renters with valuable opportunities.