According to a recent Realtor.com-Avail Landlord & Renter Survey, renting has been more expensive than it has ever been in the past several years. And, since rental affordability is a major national concern, both landlords and tenants believe it is affecting their future plans. While fewer independent landlords said they planned to raise rent this year, many renters said it would likely impact their plans to buy a home this year because more tenants have been paying consistently higher rents in recent years. “The once-hot rental market has been stabilizing and softening year-over-year since May 2023, mostly from a surge in new rental options coming to the market that gave renters more to choose from. But the surge in rents and the sheer number of renters, many of whom have held off on buying in recent years, continue to minimize any potential price impacts that increased rental inventory could have on the market,” said Danielle Hale, Chief Economist at Realtor.com.

The survey shows that although 60% of landlords anticipate raising rent in the upcoming year, this percentage has decreased recently, from 65% in Q1 2023. Most landlords who responded to the study—roughly 69%—stated that they raise rent for renewals and new leases in different ways, choosing to increase rent by 0-5% for renewals and by 0–10% for new leases. Among the landlords that do not set separate rent rates for new compared to renewed renters, some 50% want to hike rent by 0–5%. Anticipated rent hikes correspond with rising expenses for many Americans, including landlords who are charging their renters more for their services. Most landlords (60%) reported that during the previous year, their ownership costs went up by more than 10%. 72% of landlords who say they don’t intend to raise rent this year do so because their units are currently priced at or above the value of the local market.

Source: MortgagePoint