Market update October 2024: Rent growth takes a hit after rate cut

In September, the Federal Reserve cut interest rates for the first time since March 2020. Could this entice renters to make the leap into homeownership?

With house prices down, sales listings up, and rent growth sluggish, the market appears to be moving in that direction.

However, the upcoming presidential election is more likely to have a significant influence on the market than an isolated rate cut.

• Zumper reports the national median rent for one-bedrooms fell just $1 this September, to $1,533, while two-bedroom rents dropped $3 to $1,912.

• Year-over-year increases in September for one- and two-bedroom units were 1.5% and 2.5% respectively, which is consistent with last month.

• 44 of Zumper’s top 100 cities saw a dip in rental prices from the previous month, while rises were reported in 37 and 19 saw no change.

• In the sales market, the national median list price fell again month over month, from $429,990 in August to $425,000 in September according to Realtor.com.

• The number of newly listed homes increased 4% month over month, going from 383,552 in August to 399,750 in September.

• Realtor.com predicted this: the decline in mortgage rates seen in mid-August would boost listings in the coming months as lower rates encourage homeowners to sell.

• And with improved housing affordability, builder confidence in the market for newly built single-family homes rose two points from September to 43 in October, according to the National Association of Home Builders.

• Single-family housing starts in September reached a rate of 1,027,000 – 2.7% above the revised August figure of 1,000,000.

More rental market headlines
Top 4 states where the most young and rich Americans are moving to – Fortune
Move over, gyms and pools: Renters want pet areas and happy hour – Zillow
Research points to the downsides of rent control – Multifamily Dive