According to the Realtor.com September Rental Report, the rental market continues to favor tenants as rents have decreased for five consecutive months. This trend is attributed to an increase in multifamily home construction rates. Newly constructed apartments are being absorbed at a faster rate compared to pre-pandemic years, indicating high demand from renters, especially for lower-priced units.
In September, median asking rents in the top 50 metros dropped by $29 from their peak in July 2022 but remain significantly higher than pre-pandemic levels at $1,747. Rent prices have declined annually across all unit sizes.
Realtor.com’s chief economist Danielle Hale notes that with declining rent prices and rising home costs and mortgage rates, it has become more cost-effective to rent rather than buy in most major markets. However, despite an influx of new apartment units on the market curbing rent growth overall; renters are claiming these new apartments faster than before the pandemic.
Regionally speaking,the Midwest saw increases in year-over-year rents while western U.S.and Sunbelt markets experienced annual declines.Don’t miss out on key insights from leading playersin Florida,Southeast,Mid-Atlantic,and Gulf Coast multifamily sectors next month! Register now for Connect Apartments 2023 taking place on November 29th,in Key Biscayne FL.Click herefor registration details.
