“You should always buy plane tickets on Tuesdays,” my friend tells me.
Or was it strictly business hours in the first half of the week? Conventional wisdom abounds on the ideal times to purchase a flight, as consumers have long known that airline prices tend to change from day today and sometimes even more quickly. Airlines are hardly alone in employing these tactics though; many e-commerce sites also use dynamic pricing to respond to fluctuations in demand by adjusting prices algorithmically.
Should you always buy plane tickets on Tuesdays? As a result of these dynamic pricing methods, some services have leveraged their data to help consumers pick good times to buy (Kayak and Bing, for example, try to forecast flight price movements in part using query volume.)
Is there a best time to rent an apartment? At the end of last month, an article from Time Magazine examined how apartment prices, too, can change rapidly. Take a look at the infographic below, and read on to find out when you’re more likely to find an apartment deal:
First, how prevalent is dynamic pricing in the apartment industry? Estimates suggest that roughly 20% of apartments nationwide use some form of revenue management software to adjust prices. Upon examining the relationship between apartment pricing and time from a sample of more than 1.5 million listings selected from our national database, we found some patterns.
Much like airline tickets, there are ideal days to find an apartment — while Sunday and Tuesday were the most expensive days, Monday and Friday were the least expensive. Furthermore, the time of the month makes a difference. Prices rose throughout each month by about .4% total, with the majority of that increase occurring between the first and second weeks of each month. Similarly, there are more and less expensive months in which to rent. We found that prices are lowest in January, rise consistently until August, and hold steady through the end of the year. At their summer peak, prices were nearly 4% higher than in January.
So when should you rent? If you can afford to be flexible on timing, look for listings around the beginning of the new year. In general, stick to the first week of the month, and preferably look on a Monday or on a Friday. Of course, you can also always sign up for our free apartment ratings tool to find great deals using our statistical models. Happy hunting!