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Apartment Rents Post Largest Annual Decline Since 2020
The median U.S. asking apartment rent fell 0.6% year over year to $1,995 in May, the largest annual decline since March 2020, Redfin reported. That compares with a near-record 16.5% annual increase a year earlier.
In the West, asking rents declined 2.1% from a year earlier, nearly four times the national pace. But other U.S. regions saw increases: rents climbed 5.4% in the Northeast, 4.9% in the Midwest and 0.8% in the South.
Rents have cooled in part because the number of rentals on the market has grown, according to Redfin. That gives landlords less leeway to hike prices because they’re facing a rise in vacancies as renters get more options to choose from.
One reason rental supply has grown is that many homeowners are opting to rent their homes out instead of selling. Some have already moved into their next home and are renting out their previous one.
- ◦Economy
