The next phase of America's competitive white-hot market: Desperate renters facing bidding wars

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Renters diving into a white-hot housing market are over-bidding on available apartments, marking the death knell of pandemic-era deals and months of free rent — all while potentially imperiling tenants who can’t afford to compete.

A realtor in Philadelphia, for example, told the Philadelphia Inquirer she “broke down and cried with my client” after losing a potential rental property to someone who was willing to pay $500 above the listed rental price. A renter in Los Angeles told the Los Angeles Daily News she forked over $60,000 — a year’s worth of rent, up front — just to land a five-bedroom home for her family after she was beat on offers for two separate places.

“Renters are being left with few options but to meet higher rents and, in some cases, even offer above asking — whether they can afford to or not,” Realtor.com Chief Economist Danielle Hale said in a statement this month after the real estate website released data showing the median rent in the nation’s 50 largest metropolitan areas had reached $1,827 in April.

— The Joint Center for Housing Studies Higher-income tenants are increasingly entering the rental market, in part due to the rising cost of for-sale homes, according to the Harvard Joint Center for Housing Studies. That mean’s they competing with people who traditionally rent out of necessity, since they can’t afford homeownership.

“At the same time, the influx of higher-income households into the rental market is driving up rents, potentially reducing the ability of younger and lower-income adults to form renter households,” it added. “The question now is whether there will be a sufficient supply of affordable and available housing to prevent this outcome.”

 

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Don't see this anywhere in my area that is one of the most expensive in the country. The apartment complexes that started building before pandemic have all come on the market and lots of vacancies because they price it high. I am not sure if this article is shilling for rentiers.

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