According to new research from Redfin, the median income in the United States decreased 0.4% year-over-year in March, reaching $1,937, representing the first annual drop since March 2020 and the lowest level in 13 months.

In comparison, a year ago, in March 2022, rents increased by 17.5%.

In March, the median income remained unchanged from February. Although they have increased by 19.9% ​​compared to the start of the pandemic three years ago, wages have also increased at a similar rate during this period.

According to Dan Close, a Redfin real estate agent in Chicago, "rents are going down, but it feels more like they're getting back to normal, which is healthy to a degree. It is similar to the cost of eggs. You can say egg prices are falling, but what's really happening is What is happening is that they are finally returning to the norm of $3 instead of $5 or $6. Rents skyrocketed during the pandemic and are now coming back to reality.

Incomes have increased in the last two years because incomes have increased and household formation has increased. as more millennials began forming families. However, household formation is slowing down. Slowing, in part because many people choose to stay in their homes rather than move during a time of economic uncertainty.

Rents decreased in March in 13 major US metropolitan areas, including Austin, TX (-11%), Chicago, IL (-9.2%), and San Antonio, TX (-1.3% ). Instead, cities like Raleigh, NC (16.6%) and Cleveland, OH (15.3%) experienced the largest rent increases.

The decrease in rent is primarily due to excess supply as a result of the housing construction boom during the pandemic. The number of multifamily units started and completed increased to record levels in February, which has caused the rental market to be weak. It is overcrowded in some places and authorities are imposing stricter restrictions on short-term rental owners.

As rental costs remain high and inflation, rising unemployment and fears of recession are dampening rental demand, landlords are offering concessions such as parking discounts to attract tenants and stay competitive in the market.

In summary, the United States rental market is This is changing, as rents have begun to decline after two years of increases. While this may seem concerning to some homeowners, it is actually a sign that the market is warming. returning to normal after an unprecedented pandemic.