3 Affordable Places Where Renters Are Thriving Due to a Construction Boom
Written by
Stacy Sare Cohen
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While the housing market remains stagnant with high interest rates and low inventory for buyers, a construction boom in the U.S. has provided better opportunities for tenants to find affordable apartments, as landlords lower rental prices and offer perks to decrease vacancies.
This comes as a result of the record number of multi-family units being built since the pandemic. In June, more multi-family housing units were built than any month in the last 50 years, according to the Zillow Group.
In an effort to rent units in a competitive market, landlords are offering concessions such as free or discounted rent, free parking and other incentives.
According to Zillow, 33.2% of landlords provided a minimum of one rent concession last month, up more than 25% from last year.
The median rental price for one- to three-bedroom apartments dropped for the first time in four years, reports Redfin.
If you’re looking for a deal for your next rental, these are affordable places where you might find them.
Also check out where mortgage rates are dropping in the most affordable housing markets.
Greater Orlando
Due to the high volume of new construction, particularly in suburban and smaller cities 30 to 45 minutes outside of Orlando, some intriguing incentives are offered to prospective tenants, said Blake Blahut, Broker Associate & Realtor at Realty ONE Group.
“Overall, the quickly growing areas just outside of Orlando are experiencing the most “softening” of the rental market due to the high volume of not only brand new apartment buildings being built, but brand new homes for purchase as well.”
In greater Orlando, many of these homes are being bought by investors, and immediately turned around to be rented, said Blahut. Blahut calls out these Central Florida towns that offer renters great deals.
- Horizon West
- Clermont
- Saint Cloud
- Davenport
“I have seen offerings from apartment and townhome rentals as attractive as “First Month Free,” essentially giving tenants two months of free rent if they qualify.” Blahut said it’s a tactic he has seen for the past year and a half.
“I have also heard from prospective clients about offerings of up to two months free if they renew for a second year!”
South Florida
South Florida, which often has seen historically high rents, has some affordable neighborhoods where landlords offer great deals on rental units.
“With the current building boom, there is a little more breathing room now for people longing to find a rental in warm states all the way from Florida to Texas,” said Omer Reiner, Licensed Realtor, Entrepreneur & president of FL Cash Home Buyers, LLC.
Renier said as more and more apartment buildings pop up rapidly, rents go down. “That said, [many] of the “hot” cities such as Palm Beach, Miami and others still command higher lease costs than much of the U.S.”
Wilmington, NC
One area that is experiencing rent decreases due to an increase in construction over the past year is Wilmington, North Carolina, said Seamus Nally, CEO of TurboTenant.
“Quite a few new homes have been built in the area and are continuing [to] be built, and that has led Wilmington to experience a decrease in average rent prices over the past year.” Nally said that most places in the US are seeing rent increases, so Wilmington is “definitely a place [worth] checking out.”
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