Rents Rose Between December and January

Average U.S. rents rose between December and January after six months of decreases, driven in part by strong demand and low supply in some cities.

According to an article by Mary Salmonsen in Smart Cities Dive, “Metros in the Northwest and Midwest are still leading the nation in rent growth, and New York City remains at the top with 5.4% growth YOY. Austin still had the sharpest YOY rent decline at -5.4%, followed by Raleigh at -3.5%.” National rents recently hit a three-year low, but remain unaffordable for many households. Austin, which bucks the trend, has seen a decline in rent costs for 19 straight months, thanks in part to the city’s recent zoning reform efforts that encouraged a building boom. 

Salmonsen adds, “High mortgage rates and a low supply of for-sale homes on the market are also contributing to apartment retention rates. However, these same high interest rates may continue to pose challenges for property transactions in the next year.”