The video rental giant Rentrak said Tuesday that the average rental price of a studio apartment in the U.S. has been falling for the last six months, dropping from $2,000 in February to $1,700 last week.
“Studio rentals are not cheap,” said Rentrak CEO Tom O’Brien in a statement.
“With the economy so weak, people are increasingly looking to rent out their home as a place to live while enjoying a quality experience.
The trend continues to increase rental vacancy and the industry is starting to see a slowdown in rental growth.
This trend has been on the rise for the past year.
The industry is not immune from the financial downturn, but we are seeing the slowest rental growth in over 10 years.”
He continued, “The industry continues to experience a slowdown because of low vacancy rates, the rising cost of living and the continued decline in the housing stock.”
In its latest quarterly report, Rentrak noted that in May the average monthly rent for studios in the Los Angeles metropolitan area fell by 0.4 percent to $2.39 per square foot.
In New York City the median rent fell by 2.2 percent to an average of $2-3,800.
In January, the median monthly rent fell to $3,100 in Los Angeles, down from $3.20 in January 2017.