Is the Rental Market Headed for a Crash?
Property managers are reporting dropping rental rates throughout the country. Why is this happening, how long will it last, and how can you prevent it from becoming a long-term issue for your business?
Unless you’ve been living in a cave for the past year or so, you’ve likely noticed it’s taking longer to find renters for your listings. This trend isn’t unique to one area or business as property managers all over the country are experiencing similar things. In fact, we just went through the single worst summer rental market since 2017 according to data from ShowMojo, and with winter approaching, the market is about to get even more challenging.
There are many reasons for this downturn, as various market conditions have come together to create a uniquely complex scenario for property managers. However, the situation isn’t entirely hopeless since we could be witnessing a correction from the artificially inflated rental market created by the pandemic.
Strategic PM recently had the opportunity to review some telling rental market statistics with Shanae Poosz from ShowMojo and gain insight into speculation about an impending crash. RentScale CEO, Jeremy Pound, also has some thoughts on the matter, which he shared with us.
Days on Market are Increasing
The rental market is struggling, and property managers are feeling the heat. A quick look on social media offers proof you aren’t alone with the rental rate issue. These concerns are being shared at industry conferences and meetings because the decline is so steep.
But why is the market struggling exactly? There isn’t a singular answer to that question so let’s look at the multiple factors at play.
Jeremy Pound is the CEO of RentScale and Juicy Results, two firms that help companies systematize and scale their sales. In the last decade, he has helped craft and implement online marketing strategies for countless companies that range in size from the smallest of businesses to Fortune 100 companies.