Top 10 Major Cities with the Highest Current and Projected Rent Drops
As a nation, there are swift changes and action taking place daily as we work through the challenges that the COVID-19 impact is having on the economy, healthcare, employment rates, and ultimately housing. Just this past Thursday, the Department of Labor released a statement citing the highest number of seasonally adjusted weekly unemployment claims in its history coming in at 3,283,000.
This in turn presents a serious challenge for renters and investors alike. CoStar announced this week that asking rent prices nationally have decreased by 0.3%, just since March 10th, which is a sharp contrast to the norm. It indicates in real time how investors are collectively responding to these challenging times by trying to ease the hardships tenets are beginning to face by decreasing rents, or negotiating with tenets to help them find a successful solution to the extreme economic shift.
Here are the top 5 major cities and metros with the CURRENT highest decline in rents:
5. Palm Beach County, FL
Rent Change: - 1.2%
Percentage of Renter Occupied Housing: 30.52%
Total City Population: 1,470,338
4. Honolulu, HI
Rent Change: - 1.3%
Percentage of Renter Occupied Housing: 18.57 %
Total City Population: 347,397
3. Inland Empire, CA
Rent Change: - 1.3%
Percentage of Renter Occupied Housing: 11.13 %
Total City Population: 4,511,350
2. Las Vegas, NV
Rent Change: - 1.4%
Percentage of Renter Occupied Housing: 45.81%
Total City Population: 2,699,000
1. Orange County, CA
Rent Change: - 1.8%
Percentage of Renter Occupied Housing: 42.64%
Total City Population: 3,190,000
Here are the top 5 major cities and metros with the PROJECTED highest decline in rents:
5. Las Vegas, NV
Projected Severe Recession 2020 Rent Change: - 8%
Percentage of Renter Occupied Housing: 45.81%
Total City Population: 2,699,000
4. New Orleans, LA
Projected Severe Recession 2020 Rent Change: - 8%
Percentage of Renter Occupied Housing: 37.82%
Total City Population: 1,167,000
3. East Bay, CA
Projected Severe Recession 2020 Rent Change: - 8%
Percentage of Renter Occupied Housing: 45.36%
Total City Population: 870,044
2. San Jose, CA
Projected Severe Recession 2020 Rent Change: - 8%
Percentage of Renter Occupied Housing: 42.82%
Total City Population: 1,035,000
1. Detroit, MI
Projected Severe Recession 2020 Rent Change: - 9%
Percentage of Renter Occupied Housing: 31.11%
Total City Population: 3,548,000
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About the Author
Ellie is the founder of Blue Lake Capital, a real estate company specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
Ellie is the host of REady2Scale, a podcast that focuses on the "APS" of real estate: Asset, Process, and Strategy. Each episode discusses how investors can scale their real estate portfolio and/or businesses.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital at www.bluelake-capital.comand learn more about Ellie at www.ellieperlman.com.
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