Based on ShowMojo's market data from the analysis of over 500,000 successful leases, March of this year marks the toughest rental market recorded since 2017. Compared to 2023 and 2022, properties spent 5% and 36% more time on the market, respectively.
This trend isn't new. Since June 2023, on-market durations have consistently remained at historically high levels. Additionally, leads per on-market period, a crucial metric indicating rental market activity, hit an all-time low this March, continuing a downward trend since 2017.
Comparing March 2024 to the previous two years, leads per on-market period were 8% and 24% lower, respectively.
On a slightly brighter note, after 17 months, we've finally seen a halt in record-high rent reductions. In March 2024, rent reductions were 1% lower compared to March 2023. However, this minor decrease offers little relief considering the continuous upward trend in rent reductions over the past 17 months. Rent reductions in March 2024 were still significantly higher, by 47%, compared to March 2022.
There are signs that property managers are adapting to these challenging market conditions. More listings are now accepting pets, with a notable increase in properties allowing dogs and cats from 2022 to 2023. Although we are not in agreement, an increasing number of leasing managers are opting to market listings without pre-showing screening questions, indicating a shift in approach to attract more tenants. Beggs Property Management does not recommend this practice. We still feel pre-qualifying residents leads to a more efficient leasing process.
Given the myriad challenges facing the rental market, Beggs Property Management continues to refining our leasing skills and implementing best practices to better serve our owner clients. This includes syndicating listings, optimizing scheduling, utilizing targeted messaging, prompt communication with prospects, streamlining the prospect experience, and tracking listing performance to inform strategic decisions.
In essence, these best practices not only help us navigate the current market downturn but also positions our owners for success when the market eventually rebounds.
Are you interested in gaining back some of your free time and lessen the worries of managing your investment property? Give Beggs Property Management a call to find out how you can benefit from our guidance through the ever changing rental market landscape.
