Landing an affordable apartment all comes down to timing. While some days present attainable rent prices, others bring a hefty price tag. This can be very frustrating for renters, especially those who want to take their time and avoid overspending.
Understanding why apartment prices change is important if you want to avoid making hasty decisions or going outside your budget. In this guide, we’ll explore some of the factors behind apartment price fluctuations and share our tips for correctly timing an apartment search. Here’s an overview of what we’ll cover:
Why Do Apartment Prices Seem to Change Suddenly?
It’s easy to blame landlords or property management companies when apartment prices rise. But the fact of the matter is: they’re just the messengers. While these individuals/entities are certainly responsible for setting and changing rent prices, they are not always in complete control of the situation. In reality, apartment prices fluctuate because of several external factors, including:
Time of Year
Just like any other product or service, apartment prices correlate with supply and demand. Much like a tropical getaway trip in the winter or a pumpkin latte in the fall, demand for apartments varies by season. Generally, the most popular time to rent an apartment is the summer, as schedules are more flexible and the weather is better suited for moving. During this time, you’ll usually see higher rent prices and larger, more competitive applicant pools.
If you’re looking for lower prices, consider moving your apartment search to the winter season. While you may have more limited options, the winter rental market will usually present lower rent rates and less competition. Additionally, you may have more negotiating power during this time, as landlords will be more eager to fill vacancies.
Time of Month
Apartment prices can also fluctuate based on the time of the month. This is primarily due to lease cycles. Most leases end at the end of a month, creating a larger pool of available rental units as soon as the next month starts. This supply increase can cause prices to lower as landlords have more empty units to fill. Then, prices will rise as the month goes on and vacancies fill.
Time of Week
Just like booking a flight, apartment prices can change daily. While an apartment might be within your budget on Friday, it could be out of reach by the end of the weekend. So, it’s important to strike while the iron is hot and be strategic about when you submit an apartment application.
Patterns show that Mondays and Fridays present the most affordable rental rates, especially if you apply in the morning. Meanwhile, Sundays and Tuesdays tend to be the most expensive. Keep this in mind when scheduling apartment tours and submitting applications.
Market Conditions
Lastly, apartment prices fluctuate based on the overall state of the rental market. If the local economy is doing well, rent prices will likely rise to match renters’ increased affordability. However, if economic conditions are poor, decreased demand may cause prices to drop.
Local rental landscapes can also be influenced by factors like employment opportunities, seasonal appeal, and new developments in the area. For example, a big company opening a new headquarters in your city could attract new renters looking for jobs, therefore increasing demand and apartment pricing. On the other hand, a sudden surge in local crime could drive residents away, decreasing demand and rent prices.
What Is Dynamic Pricing Software?
Dynamic pricing software is a tool used by landlords and PMCs to automate the rent pricing process. Fueled by sophisticated algorithms, this software automatically adjusts rental rates based on real-time market data, including seasonality, vacancy rates, and competitor pricing. Rather than doing the research themselves, landlords can use dynamic pricing software to streamline the listing process without having to worry about over- or underpricing their property.
So, remember when we said not to blame your landlord or PMC for drastic price fluctuations? When an apartment’s price suddenly changes, it’s probably because the listing price is automated by dynamic pricing software. Most property managers have these kinds of systems, and they’re something renters should be aware of when searching for an apartment.
When Are Apartments Cheapest?
Now that you understand why apartment prices change, your next question is probably when are prices at their lowest? Well, we mentioned earlier that the best deals are usually found in the winter. However, we understand that not everyone can adjust their moving timeline to correlate with the slow rental season. In that case, you may consider the following strategies for finding an affordable apartment:
Live with a Roommate
Living with a roommate is the ultimate budgeting cheat code for renters. Not only can you split rent and utility costs, but you can also divide living expenses like groceries, cleaning supplies, and other household essentials. If you’re getting frustrated with price fluctuations, consider recruiting a roommate or two to lighten your financial load. Doing so will leave more wiggle room in your budget for peak rental season prices.
Search for Rent Specials and Deals
Another tactic for finding affordable housing is to utilize rent move-in specials. These are promotional offers or incentives PMCs or landlords offer to attract new tenants. You’ll tend to find these types of rent concessions when market supply is high, as landlords will look for ways to stand out amongst the competition. Some common move-in specials or deals include:
- First month’s rent free
- Discounted security deposit
- Free utilities and other amenities
- Waived/reduced fees, i.e. application fees, pet fees, etc.
Keep in mind that these types of deals are usually only offered for a limited time. So, if you discover a rent special that helps you stay within your budget, act fast!
Consider Different Lease Durations
If you’re finding that apartment prices are too high, consider looking for a different type of lease. Generally, short-term leases, which are six months or less, are more expensive than long-term ones. These types of leases are great for renters seeking temporary housing but not as much for those on a tight budget.
If your living circumstances allow, you might extend your lease to at least a year, if not more. Long-term leases are generally cheaper and provide more stability for renters. Often, you’ll find that rates get cheaper as lease durations get longer, meaning 15-month agreements will usually yield the most affordable monthly rent rates.
Search by Price on Apartments.com
Filtering your search by price is the easiest way to find an affordable apartment. By keeping your options within a reasonable price range, you won’t be tempted to overspend on an apartment you can’t afford. This streamlines your apartment search while ensuring you stay within your budget.
Apartments.com makes it easy to find rentals within your price range. When searching for an apartment, you can filter your search by price range by inputting your minimum and maximum rent amount. Then, your results will only include listings within that range. Additionally, you can utilize some of our other search filters, such as location, number of bedrooms, amenities, and more, to tailor your search exactly to your liking.
FAQs
What is the hardest month to rent an apartment?
June, July, and August are the most difficult months for renting an apartment. This is because demand is typically at its peak, generating high competition among renters and increased apartment prices.
What time of year are apartment prices lowest?
Apartment prices are usually lowest during the winter months, particularly from December to February. Fewer people are looking to move during this time due to the holidays and colder weather, leading to less competition and potentially better deals.
What day of the week are apartments cheapest?
While the day of the week does not significantly affect apartment rental prices, some suggest that Mondays and Fridays yield the cheapest rental rates. Meanwhile, Sundays and Tuesdays are when prices are at their highest. Keep this in mind when scheduling apartment tours and submitting rental applications.
