Will the Rent go down by September of this year?

[dphunter]

Supply is pretty glutted right now, is it not? At least three new complexes in the Upper Kirby/Montrose that I've seen in my hunting, and looking on Craigslist it seems that almost every middle/upper-end complex in that area is running a promotion at the moment. How long will that last?

[flikaint]

There's market rents and there's effective rents. Effective rents are after all concessions are applied. I don't see market rents dropping. Effective rents will vary throughout the year, however june-septemeber effective rents will be at their peaks. Management companies are currently willing to give concessions but not willing to drop their market rents which is why a lot management companies make you take that 1, 2 month free special up front instead of prorating it through out the lease term. Now there are a lot of companies that use price optimizing software (pricing that changes every day) and that is a whole different conversation.

[Info Guy]

Originally Posted by NToma99

Rents should drop with all the new apartments opening

That depends on if there is a competitor next door right?

[Info Guy]

Originally Posted by flikaint

As someone who works in property management I can tell you for renewals expect a 2-6% increase. Lease renewals will almost always have some sort of increase. For new leases I can't see them decreasing, concessions come in waves, summer time has the highest demand/turn over so prices will be at the highest during the summer time.

I am looking to move in sometime in September.

[predatorprey]

Property taxes skyrocketing this year do I'd expect further large increases this year

[raysor]

Originally Posted by predatorprey

Property taxes skyrocketing this year do I'd expect further large increases this year

Exactly right!!

[ruby_soho]

OP, thanks for asking this question. I've been wondering about this, too...
Everyone who responded: As a renter, it's not the news I wanted to hear, but I sure appreciate your input. Helps to plan ahead. We had $$ saved for a down payment on a house, then I lost my oil & gas job in Jan...bye savings and hello renting for a few more years...

[LocalPlanner]

As an earlier poster said, expect more properties to offer concessions (move-in specials etc.). This will be the principal effect for the time being. The rapid rent increases the market has experience over the last two or three years should pretty much end, except in locations that are just exceptionally popular or gentrifying (starting from a low base). It would take a really massive economic decline - a large net loss of jobs for the region - to have substantial rent decreases, even with all the new supply (which was needed just to match the job growth we've been having until now). So far, while the economy is definitely slowing a lot, it doesn't look like that kind of decline will happen.

[Info Guy]

2009 was a really a good year to rent as well as buy.