Why Do Apartment Prices Change Daily?

If you’ve been on the hunt for an apartment, you may have noticed how prices seem to fluctuate daily. One moment, the rent for your dream apartment looks like a perfect fit for your budget, and the next, it’s out of reach. But why does this happen? The answer lies in a combination of factors that influence rental markets. 

Here’s a breakdown of the main reasons apartment prices change so frequently. 

Supply and demand 

When there are fewer apartments available (low supply) and a lot of people looking for them (high demand), prices typically increase. Conversely, if more apartments become available or demand decreases, you might see rental costs drop. 

For example, if a new apartment complex opens in an area, the influx of options could temporarily lower prices. On the other hand, areas with limited housing options and increasing population growth tend to maintain higher rental costs. 

Day of the month 

Rental activity tends to fluctuate throughout the month, and that can affect pricing. Towards the end of the month, many renters are giving  notice or moving out, creating vacancies. Property managers may then adjust pricing or offer move-in specials to fill these new openings quickly. 

If you’re flexible with your search, consider looking for deals mid-month when landlords may be keen to fill upcoming vacancies that are still available. 

Day of the week 

Yes, even the day of the week can influence pricing! Weekdays may see more competitive pricing because fewer people are searching for apartments compared to weekends, when most renters have time off to browse listings and schedule viewings. 

If you’re shopping for an apartment, try checking prices midweek. You could find better deals or even faster responses than during weekend peak times. 

Seasonality 

Apartments may follow local seasonal trends that can impact pricing. For example, during the summer months, rental prices may rise. This happens in rental markets where there is, for example, high activity due to college students relocating, families moving during school vacations, and warmer weather facilitating easier moves. 

On the other hand, the rental market may slow down in winter, particularly during the holiday season. Fewer people tend to move during this time, so landlords may drop prices to attract tenants. In many areas, January and February can typically be the best months to save money on rent.

Vacancy rates 

Apartment complexes strive to maintain high occupancy rates in order to maximize profits. If a building has a lot of vacant units, property managers may lower rents to quickly attract tenants. 

On the flip side, if the building is nearly full, managers might increase prices for the few remaining units, knowing there’s enough demand to fill them at a premium rate. 

Competitor pricing 

Landlords and property managers don’t operate in isolation. They constantly monitor the prices set by nearby competitors. If a similar apartment complex nearby suddenly drops its prices or offers a promotion, others might follow suit to remain competitive. 

This dynamic can create small but noticeable fluctuations in pricing as apartment communities compete for renters from the same pool of potential tenants. 

Market conditions and economic factors 

Broad economic conditions, such as inflation or changes in interest rates, can also impact rental prices. For example, if the area sees increased job opportunities and economic growth, housing becomes more desirable, which may lead to increased rent costs. 

Additionally, rising interest rates may prompt more people to rent instead of buy, thereby increasing competition for available units and driving up prices. 

What does this mean for renters? 

Understanding the factors that influence apartment pricing can help you make smarter decisions when searching for an apartment. For instance: 

Be strategic with your timing

Look for potential discounts during the off-season or late in the month. Rent concessions can typically rise in August and peak in December. Renter competition is also likely lowest in November and December, which means landlords could move faster to accept an application. 

Monitor trends

Keep an eye on how prices evolve in your desired area, and act when rent prices appear more favorable. 

Embrace flexibility

Being flexible with your move date, the day of the week you search or even your lease duration can lead to savings. These factors can drive pricing differences. For instance, an 18-month lease may have more cost savings than a 12-month lease.

Your next steps 

Finding an apartment that fits your budget can be overwhelming, but having the right knowledge is power. Understanding what drives pricing changes can help you feel more confident and prepared to act when the right opportunity arises. With real-time pricing, availability updates, and filters that let you search by budget, Zillow’s Rental Search Center is your go-to tool for staying ahead of the market and taking control of your apartment search.