Housing market forecast: home prices & rental rate outlook, Ivy Zelman

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Ivy Zelman called the last two big downturns in home prices. She told us that renters are about to get some very good news.

So when Zelman says things are shifting in a better direction — for renters, anyway — it might be cause for celebration.Zelman believes that a tidal wave of new apartments are going to be ready for renting at the end of 2023 or early 2024, and it's going to make a huge difference in the rents that landlords can charge.

Rents grew quickly after COVID-19 restrictions were lifted, but now those increases are dropping back to a more standard pace, which Zelman says is generally 2% to 4% per year. But that's going to happen as a lot of new supply becomes available, which will put more pressure on prices. "We're not in the camp that a lack of inventory is a positive for the housing market," she said."There's a disincentive to move even though you have substantial equity."

 

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