National Rent Prices for New Leases Drop for the 5th Month• https://mishtalk.com, By Mish
Apartment List reports the fifth consecutive drop in apartment rent prices but that may not translate to your next lease renewal.
National Rent Report
Please consider the latest National Rent Report by Apartment List.
Our national rent index fell by 0.3 percent over the course of January, marking the fifth straight month-over-month decline. This month's price dip was notably more moderate than the record-setting declines we saw from October through December. That said, January's decline was still sharper than the usual seasonal trend, signaling the continuation of a broader cooldown in market conditions.
Year-over-year rent growth is continuing to decelerate, and now stands at 3.3 percent, its lowest level since April 2021. Year-over-year growth is now pacing just slightly ahead of the average rate from 2018 to 2019 (2.8 percent), and is likely to decline further in the months ahead.
The cooldown in rent growth is being mirrored by continued easing on the supply side of the market. Our vacancy index now stands at 6.1 percent, surpassing 6 percent for the first time since spring of 2021. With a record number of multi-family apartment units currently under construction, we expect that supply constraints will continue to soften. 2023 could be the first time in years that we see property owners competing for renters, rather than the other way around.