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Apartment Rents Decline for Fifth Consecutive Month
The housing market balance continues to tip in favor of renters with rents declining annually for the fifth consecutive month amid an uptick in construction rates of multifamily homes, according to the Realtor.com September Rental Report. Meanwhile, compared to pre-pandemic years, faster absorption rates of newly constructed apartments within the first three months after completion signal strong renter demand, particularly for lower-priced units.
In September, median asking rents in the 50 largest metros dropped to $1,747, down $29 from the peak seen in July 2022 although still well above pre-pandemic levels. Rent prices declined on an annual basis for units of all sizes.
“As rents ease and both home prices and mortgage rates continue to climb, it’s become more economical to rent than to buy in nearly all major markets,” said Danielle Hale, chief economist at Realtor.com. “However, even with an influx of new apartment units coming onto the market and putting a lid on rent growth, renters are claiming these new apartments faster than prior to the pandemic.”
At the regional level, Midwestern markets saw rents increase year-over-year, while those in the western U.S. and the Sunbelt experienced annual declines.
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- ◦Lease
