Real Property Management Pittsburgh Blog

Leasing in 2023

As many of you know, it’s been a down year for leasing. After three years of rental rate growth, pricing is coming back down—compressing rental rates on single-family and multi-unit leasing. 

According to Rent.com, asking rents in Pittsburgh have come down as much as 15%. CoStar is reporting a decrease of 10%. And our listings this year are down by an average of 7.94%. Rental inventory is still high and increasing due to the seasonal slowdown. This year’s decrease in rent rate has typically been preceded by a longer-than-normal DOM (days on the market). Last year, our average DOM was 19 days. This year, it’s currently at 47.

 

Here are some numbers… Say your property’s preferred rent is $2,000 per month. If it sits vacant for a month, that’s $2,000 down the drain. Plus, in high inventory markets, waiting often means adjusting the price to $1,800 to attract tenants.

Scenario 1: Delayed Adjustment

  • Lost Rent: $2,000
  • Reduced Price: $1,800
  • 12-Month Income: $1,800 * 12 – $2,000 (lost rent) =  $19,600

Scenario 2: Immediate Action

  • No Lost Rent
  • 12-Month Income: $1,800 * 12 = $21,600

Acting fast typically means higher long-term income. Please remember days vacant are lost forever and right now, renters have a lot of options. 

There are always peaks and valleys in real estate investing, so there is no need to panic. Historically, the market will correct and we’ll be back to higher rents and will be trending in the right direction again. 

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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