For five straight months apartment rents have dipped, with the latest numbers for September showing that overall prices were down 0.7% year over year, according to Realtor.com. It found that median asking rents in the 50 largest metros dropped to $1,747, down $29 from the peak seen in July 2022.
It is now more economical to rent than buy in nearly all of the major U.S. markets, according to Realtor.com Chief Economist Danielle Hale, although she notes that rent prices have remained well above pre-pandemic levels. Overall, rent has increased by 24% since July 2019, according to Realtor.com numbers.
The rental market is grappling with two opposing forces, Hale tells GlobeSt.com: strong demand especially as home ownership has moved out of the reach of many people and an abundant level of supply that continues to enter the market. Going forward, she says, "it is tough to say whether the demand or the supply will be the bigger influence on price."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
