Zumper’s 2022 Annual Rent Report takes a deep-dive into past year of data, knowledge of economic trends, Zumper surveys, internal data on renter search, and ongoing conversations with clients, experts, and others in the industry. They say this intel gives them a comprehensive view of 2022 and a look at what’s to come in 2023.
“As 2022 draws to a close, our industry faces a perfect (or, should we say, imperfect) storm of economic conditions causing uncertainty and stagnation. Property owners are coming down from pandemic-era highs of full occupancy and stepping into a precarious new era as they deal with a triple whammy of low consumer confidence, declining rent prices, and lower occupancy.”
“As new household formation continues to shrink and consumers put off big moves until the economic picture is more clear, we do expect rents to decrease across much of the country for at least the first quarter of 2023. But, by around mid-year, consumer confidence will likely improve significantly, and renters will help drive the economy with more optimistic spending habits. By the end of 2023, we’ll potentially see the first “normal” season since 2019.”
Key Themes & Findings:
- Consumers lack confidence in the economy.
- Owning a home is increasingly out of reach.
- Florida continues to defy all expectations with continued migrations and subsequent rent hikes.
- New York City continues to surge upward, in both number of new residents and rent.
- Metro areas that welcomed hordes of new residents during the pandemic are experiencing that trend reversing.
- Good news for renters: rent prices are now increasing at or below current inflation rates.