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U.S. Apartment Rent Growth Flattens in September
The median U.S. asking rent rose 0.4% year-over-year to $2,011 in September, representing the sixth consecutive month of little change in rents from a year earlier, Redfin said Thursday. Prior to that, rent growth had slowed rapidly for roughly a year, following a surge in prices during the pandemic. Asking rents, meanwhile, declined 2% month-over-month.
“Rents have flattened because a boom in apartment building in recent years has flooded the market with supply, but they haven’t yet posted a substantial decline because there’s still demand for rentals—especially as high mortgage rates keep many would-be homebuyers and sellers on the sidelines,” said Redfin economics research lead Chen Zhao.
She continued, “There are still a lot of apartments under construction that will continue to hit the market, which should keep rents from increasing much in the near-to-medium term. But construction has started to slow, which should eventually help bolster rent prices.”
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