Since the Great Recession from 2007–2009, renters have faced skyrocketing rents and landlords have enjoyed steadily growing profits. However, that may change in 2017, according to the latest forecast from Axiometrics.
From 2010 to 2016, rent growth rose 150 basis points above the long-term average. But some markets where rents had been rising the most are starting to see declines occur.
“The slower rent growth in 2017 is expected to benefit renters more than landlords,” KC Sanjay, who leads Axiometrics’ economists and analyst team, writes in a column at Forbes.com.
During the past six years, the average annual rent increase was about $516. In 2017, it is expected to fall to about $347—a $168 savings annually for renters.
Further, out of the 54 major U.S. metros that Axiometrics researchers tracked, about 36 showed annual savings ranging anywhere from $8 to $2,647. The average decreases are about $360 from 2010–2016 prices.
The Bay Area—San Francisco, San Jose, and Oakland—leads the nation in forecasted rental drops over this year. San Jose renters, for example, will likely pay $2,647 less a year compared to the 2010–2016 average rent. Annual savings in San Francisco will be $2,638 and $1,647 in Oakland this year, according to Axiometrics’ data.
Source: “Renters vs. Landlords: Who Wins in 2017?” Forbes.com (March 3, 2017)