The cost of rental housing is stagnating

Despite the seasonal lull, the average cost of rental apartments in the largest regional markets is slowly growing. Owners can maintain price levels without feeling competition for tenants: due to rising rates and declining loan approval, many of them continue to be forced to rent. Analysts do not see any prerequisites for a decline, but they also do not expect a pronounced increase in prices, recalling that the seasonal increase in housing costs will begin only in the second half of July.

The average cost of renting one-room apartments in the 18 largest regional markets in Russia (16 cities with a population of over a million, Moscow and Leningrad regions) at the end of February amounted to 27.3 thousand rubles. per month, increasing by 0.2% over 30 days. Two-room apartments, on the contrary, fell in price by 0.2%, to 40 thousand rubles. per month. Such data are cited in CIAN.Analytics, calling prices stable. According to calculations by Etazhi, one-room apartments in the largest cities of the country now cost an average of 26.4 thousand rubles. per month, “kopeck piece” – 32.2 thousand rubles. Over the month, the figures increased by 2.5–2.6%. Avito Real Estate says that in Russia as a whole, the average cost of a rental apartment is now 28 thousand rubles. per month. Over the past 30 days, the value has not changed, but increased by 12% year-on-year.

Most notable growth the average cost of renting one-room apartments for the last month was recorded in CIAN.Analytics in Ufa. The indicator increased by 6.3%, to 21.8 thousand rubles. per month. In Voronezh the dynamics was 5.2%, up to 20.1 thousand rubles. In Tyumen, according to Etazhey, “odnushka” prices increased by 3.4% over the month, to 24.5 thousand rubles. Simultaneously in Novosibirsk index decreased by 4.6%, to 26.7 thousand rubles. per month, noted in CIAN.Analyst. In St. Petersburg the decrease was 1.4%, to 34.7 thousand rubles.

In Moscow, according to CIAN.Analytics, the average cost of renting a one-room apartment is now 57.1 thousand rubles. Over the month, the figure increased by 0.7%, over the year – by 33%. There is no talk of reducing average rates in the city yet due to the ongoing shortage of economy class supply, while demand is focused on the most budget options, says Oksana Polyakova, deputy director of the rental department of the Inkom-Real Estate company. Discounts, according to expert observations, are not common.

Only owners who initially offered properties at an inflated rate and waited several months for tenants are ready to reduce prices.

Although in general the demand on the market cannot be called rush. The head of CIAN.Analytics, Alexey Popov, says that the number of targeted user actions with ads at the end of February did not change compared to the previous month: the beginning of the year is traditionally considered a lull. The head of the long-term rental category at Avito Real Estate, Konstantin Kamenev, also points to this, adding that year-on-year demand decreased by 1.3%. Potential tenants, according to Mr. Popov, are gradually adapting to the high rental rates. The total volume of supply for the month increased by 3%, he adds.

But homeowners in large cities, according to Olga Pavlinova, director of the Etazhey rental department, do not yet feel competition for tenants, and therefore are not motivated to reduce prices or make concessions. According to the expert, there are many mortgaged apartments for rent on the market, where the owners expect to cover bank payments by renting out. The expert recalls that many tenants were forced to postpone transactions to purchase their own housing, continuing to rent.

“In the secondary market, mortgages have become noticeably more expensive, but in the primary market, where preferential rates are available, loan approval has decreased,” says Ms. Pavlinova. Such renters, she said, are usually looking for more affordable options, and demand is shifting to the outskirts of cities.

Oksana Polyakova does not expect a reduction in rental rates in Moscow in the near future: first the volume of exposure must increase. Alexey Popov points out that the supply entering the market mainly consists of properties in recent new buildings. On average, such apartments are rented at a higher price than lots in the old stock. This does not help lower average rates. At the same time, the expert predicts that the high cost of mortgage loans continues to stimulate demand for rentals. Mr. Kamenev has similar expectations: an increase in rates during the peak period – at the end of summer – in the fall. This process will begin in the second half of July, before which the cost of housing may increase slightly, adds Ms. Pavlinova.

Alexandra Mertsalova