By Mark Kosin
In America's biggest cities this summer, many will be entering into an apartment search in hopes of finding that perfect new address. But "search" is far too soft a word for the conflict and downright anarchy that reigns when renting season hits its high point. A far more appropriate term would be an apartment battle. Because in a battle, there are winners and losers.
Below are who looks to be winning and losing in 2017 around the country.
NEW YORK CITY
Winners: Renters
Coming to a borough near you this summer: it's The Revenge of the Renter! According to the New York Times, renters have the extremely rare upper hand across the city this year. A glut of new higher-end offerings are having a ripple effect across the entire city. Now this is still New York and rent prices remain close to the highest in the country, but what it does mean is that anybody who is looking for an apartment and takes the first (or second) deal offered is pretty much throwing money off the Williamsburg Bridge. From the Times:
Even novice renters are getting deals, like Brandon Kline and Abigale Koppa, a couple who moved from Long Island to Queens last month. They looked at a handful of apartments before settling on a $2,150 one-bedroom in Sunnyside. Their broker, Michael Sargent, a salesman for Citi Habitats, noticed that the apartment had been on the market for seven weeks and asked the landlord for a concession. The landlord offered a month of free rent.
Deals such as the above are expected to play out all over the city this summer. Though renters should keep in mind that concessions are usually an at-signing, one-time thing. Those savings will last a year or two at most, and then you'll be back at the full price or may even face increases.
Nevertheless, renters of New York are enjoying a beautiful Margot Robbie-esque moment.
Soak it in.
LOS ANGELES
Losers: Renters
It is a good thing that Los Angeles wins big when it comes to nice weather, Mexican food, and classic hip hop radio stations, because this summer L.A. renters are going to be big L-A-OSERS.
Rents are expected to rise to an average of $2,095 per month by the end of 2017 according to Curbed. That comes out to an increase of 5.4% for a city that is already suffering from an acute housing squeeze / crisis.
While Los Angeles renters were spared the disaster that could have been the passage of Measure S earlier this spring, the rent pain is very real and shows no sign of abating anytime soon. L.A. is still among one of the worst cities for renters in the country, with vacancy hovering under 3%, continually rising rents, and more than 1/3 of each resident's income going towards rent payments.
CHICAGO
Losers: Landlords
As Chicago's skyline takes on the appearance of a boomtown with 52 different high-rises under construction, landlords are feeling busted with occupancy for high-end downtown apartment buildings dropping to their lowest levels since 2009. A recent Crain's report states that after a long sustained stream of tenants towards the city, the supply for apartments near downtown may finally be outweighing the demand.
To renters, the power shift will be a bigger relief than a cool breeze off Lake Michigan on a hot August day. It seems likely that those looking for an apartment this summer will be able to push landlords for major concessions-- two or more free months-- as the many, many new apartment buildings that have gone up over the past five years gives them a number of options to choose from.
SAN FRANCISCO
Losers: Everyone
Rents appear to be dropping in some of the most expensive neighborhoods of San Francisco, but that doesn't mean SF tenants can expect to save in their apartment hunting this summer. A report from Zumper shows that even while rents have largely plateaued in much of the city, certain neighborhoods like Presidio Heights and the Outer Mission/Excelsior have seen rents go up.
So landlords have seen their rents flatten out, while San Francisco tenants are still paying the highest rents in the country (and maybe even the world).
Just like a backyard wrestling match: there are no winners here.
DALLAS-FORT WORTH
Draw: Renters and Landlords
While the rents in Big D have never been the priciest among the nation’s big cities, renters are taking a big hit this 2017 as the area is seeing one of the largest rent increases in the country. It’s a jump of nearly 6%, pushing the average D-FW rent to $1,057 per month, according to Dallas News.
The fact that rents are rising faster than the mercury on a West Texas thermometer is especially surprising considering the more than fifty thousand apartments currently being built in the area, with roughly thirty thousand apartments getting on the market this year. Even with all the new units, vacancy remains very low-- hovering at less than 5%.
But, even with the rent jump, Dallas is far outside the top ten most expensive cities in the U.S. for renters... so one can't really dub Dallas renters "losers" just because they're taking it on the chin a bit in 2017.
