Shifting supply and demand dynamics in 2023 will likely give renter the upper hand as they look to lease new units, tempering rent growth after a historic run-up in prices during the course of the pandemic.

More multifamily units are under construction than at any point since 1980 — but as that record new inventory hits the market in 2023, fewer renters will likely be looking to move. And that imbalance means "renters will be back in the driver's seat," according to a new analysis from ApartmentList.

"Looking ahead to next year, we expect that the most notable trend in the rental market will be a shift in bargaining power away from property owners and back to renters," ApartmentList analysts note. "This shift already appears to be underway, as evidenced by the recent declines in the national median rent. The factors that have driven that dip – namely, cooling demand colliding with rising inventory – are likely to persist into next year."