Renters could also consider the suburbs, where rent prices have grown more slowly than urban rentals, she says. To cut costs, renters might want to extend their existing lease if it's affordable. In the meantime, 's Hale says that renters should expect to pay more. This, in turn, should provide some price relief for renters, he says. "There's also an expectation that the Fed is going to pivot after inflation starts to come down, which would then take a little pressure off the mortgage market," LaSalvia says. "And with that, mortgage rates are going to stay relatively high."įortunately for renters, Moody's expects price growth to taper off in the second half of 2023, provided that home financing costs decline. "There's an anticipation that interest rates still have to rise in the next six months for the Fed to get inflation back into its comfort zone," LaSalvia says. Before the Covid pandemic, annualized rent price gains were about 4% to 5%, he says. Similarly, an upcoming Moody's Analytics forecast predicts a rent growth rate of 5% to 7% during that same time, says Thomas LaSalvia, a director of economic research at the financial analytics firm. Year-over-year rental price growth will rise from 5.8%, as of June 2022, to 8.4% as of May 2023, according to a Federal Reserve Bank of Dallas forecast that uses data from the federal government's consumer price index.
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