10 U.S. cities where the pandemic is rapidly declining cost of rental housing

Traditionally, prices for rental housing in the United States begin to grow in early spring for new leases, peak in summer and then declining in autumn and winter, reminds CNBC. Pandemic COVID-19 affected this trend, according to a new analysis of Apartment List.

10 городов США, где из-за пандемии стремительно снижается стоимость аренды жилья

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Average rents in the country from March to April 2020 fell, contrary to the traditions of the market. The decline in prices in this period was the first time since 2014 when Apartment List started regular monitoring of trends in the rental market.

“The change in the cost of rent for a month is a good way to assess the direct impact Covid-19 on the market,” said Christopher Salviati, an economist for housing, Apartment List, and the author of the report.

To see how the pandemic has impacted on rents, experts analyzed the monthly growth rate of the rent for apartments with two bedrooms in the 50 largest cities in America. Then studied the change between March and April 2020 — this is usually a period in which there is a seasonal increase, and compared with the same period last year.

These 10 cities are faced with the largest decline in rental prices in the spring of this year, at least for the moment.

1. Miami, FL

  • Change in monthly median growth rent: -1.09%
  • The change in average prices from March to April of 2020: -0,5%
  • The change in average prices from March to April 2019: +0,59%
  • The average cost of renting an apartment with two bedrooms in April 2020: $1 384

2. New York

  • Change in monthly median growth rent: -0,99%
  • The change in average prices from March to April of 2020: -0,23%
  • The change in average prices from March to April 2019: +0,59%
  • The average cost of renting an apartment with two bedrooms in April 2020: $2 559

3. Baltimore, Maryland

  • Change in monthly median growth rent: -0,94%
  • The change in average prices from March to April of 2020: +0,08%
  • The change in average prices from March to April 2019: +1,03%
  • The average cost of renting an apartment with two bedrooms in April 2020: $1 193

4. Austin, TX

  • Change in monthly median growth rent: -0,90%
  • The change in average prices from March to April of 2020: -0,27%
  • The change in average prices from March to April 2019: +0,63%
  • The average cost of renting an apartment with two bedrooms in April 2020: $1 470

5. Las Vegas, NV

  • Change in monthly median growth rent: -0,86%
  • The change in average prices from March to April 2020 -0,25%
  • The change in average prices from March to April 2019: +0,61%
  • The average cost of renting an apartment with two bedrooms in April 2020: $1 193

6. Nashville, Tn

  • Change in monthly median growth in rents: of -0.81%
  • The change in average prices from March to April of 2020: +0,09%
  • The change in average prices from March to April 2019: +0,89%
  • The average cost of renting an apartment with two bedrooms in April 2020: $169 1

7. Charlotte, North Carolina

  • Shift monthly median growth rent: -0,79%
  • The change in average prices from March to April 2020 -0,43%
  • The change in average prices from March to April 2019: +0,35%
  • The average cost of renting an apartment with two bedrooms in April 2020: $1 153

8. Houston, TX

  • Change in monthly median growth rent: -0,78%
  • The change in average prices from March to April of 2020: -0,29%
  • The change in average prices from March to April 2019: +0,49%
  • The average cost of renting an apartment with two bedrooms in April 2020:$1 035

9. Oklahoma City

  • Change in monthly median growth rent: -0.75 per cent
  • The change in average prices from March to April of 2020: 0%
  • The change in average prices from March to April 2019: +0,75%
  • The average cost of renting an apartment with two bedrooms in April 2020: $814

10. San Antonio, TX

  • Change in monthly median growth rent: -0.75 per cent
  • The change in average prices from March to April of 2020: -0,28%
  • The change in average prices from March to April 2019: +0,47%
  • The average cost of renting an apartment with two bedrooms in April 2020: $1 079

Salviati believes that two main factors that affect rent growth, is exposure to local economy the impact of restrictions associated with the coronavirus, as well as the implications of the coronavirus as emergencies in public health.

According to a report by Euromonitor International, new York is the most visited city in North and South America and a diversified economy. It is also the current global epicentre of the pandemic.

Miami is among the four best tourist destinations in the country. The tourism sector in Nashville also grew quickly to a pandemic. Las Vegas is one of the most tourism-dependent cities in the country: every third job in Nevada connected with the hospitality industry and gambling. Many works in the field of tourism, entertainment and hospitality can’t be done from home.

According to another report on the rental, in Las Vegas, Orlando, Miami, and Oklahoma city has the highest proportion of employees “non-core” industry that can’t work remotely. These workers are at very high risk of losing their sources of income and hence ability to pay rent.

Rents in many cities have fallen, but the mass collapse of prices was not. The inability of many to pay the rent in addition to various moratoriums on evictions, applicable across the country, lets move people, reducing the demand for new apartments. People do not consider the change of housing, and landlords are waiting for the normalization of the situation with the virus, to understand what is happening before you make serious decisions on pricing”.

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