2024 Q4 Market Update: This Too Shall Pass
One day we’ll forget all about this leasing market. But not yet.
The rental market continues to soften, and the data in this market update don’t lie — it’s another tough quarter.
In this recap, we’ll break down the numbers and walk through several charts that highlight historic and ongoing leasing trends dating back to 2017.
Let’s dive in and review the data. Then to wrap up, we’ll explore the best practices you can employ to keep moving forward.
A Historically Bad August
As far as market times are concerned, this is the worst August since 2017, the year our records began. Compared to the past two years, this August’s market times were significantly longer: 10% longer than in August 2023, and 29% longer than in August 2022.
This extends the dubious streak of historically high market times that emerged in June 2023.
Leads Per On-Market Period Go Historically Low
Leads per on-market period continued to reflect the rental market’s slowdown in August.
As you can see in the chart below, average leads per on-market period in August were lower than they’ve ever been dating back to 2017.
Compared to last August, leads per on-market period declined by 11% and 24% compared to August 2022.
Property Managers Still Searching for the Sweet Spot
Rent reductions continue to reach historic highs. In August 2024, rent discounts were 9% more frequent than in August 2023, and 37% more frequent than in August 2022.
Hopefully, the rent reductions will start to plateau as the market reaches a state of equilibrium. But the sharp increase since May is a bit disconcerting.
It’s Raining Cats and Dogs
Dog and cat ownership has been On the Rise for Years. And the trend toward pet-friendly listings shows no signs of slowing down.
From 2023 to 2024, the number of on-market listings allowing dogs increased by 8%, while cat-friendly listings rose by 7%.
This follows the broader trend we observed from 2022 to 2023 and suggests property managers may be adjusting their policies to meet market demand.
Property Managers Opting Out of Pre-Showing Screening Questions
We’ve also seen a 110% rise in the number of on-market listings that do not include pre-showing screening questions between 2023 and 2024.
While the overall numbers remain small, the significant percentage increase suggests that property managers are trying to reduce friction for prospective renters to minimize market times.
Note: This data does not account for identity verification processes.
Brush Up on Leasing Skills and Best Practices
The best time to start doubling down on leasing skills and best practices was yesterday. The second best time is today.
The fundamentals of this leasing market aren’t hopeful—at least not yet. Household debt is high, wages did not keep up with inflation, and despite the recent rate cut, interest rates are still relatively high. Plus with this being an election year, uncertainty is high.
Your anchor is leasing skills and best practices. This means:
- Syndicating Listings and maintaining them so they 1) make it easy for prospects to self-schedule a showing and 2) show your properties in their best light.
- Optimizing Scheduling to Maximize Showings — whether you’re conducting self-showings, in-person, or a mixture of both.
- Using Targeted Messaging to nurture the leasing prospects that are most likely to convert into renters.
- Responding and Communicating Quickly with prospects on their terms, whether through text, email, or phone calls.
- Streamlining your Prospect Experience by reducing paperwork and automating follow-up to grease the chute for a smoother sales process.
- Tracking and Reporting on Listing Performance to inform strategic shifts when they’re needed.
These are the best practices that will get you through. And it just so happens that, when the market turns, these are the same best practices that will have you perfectly positioned to maximize your rental revenue. Isn’t that convenient?
Ready to Outsmart this Market?
As it turns out, ShowMojo can help you with every one of the best practices listed above.
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