Rental Prices Drive Inflation Despite Overall Slowdown

Rental prices were the largest contributor to the rise in inflation in March, with housing costs going up 8% during the same time period. However, newly constructed apartments are expected to hit the market this year, which should lower rental prices. Rent growth continued to slow in February, with the national median rent at $1,937, down from $2,053 in August 2022. While most of the significant yearly increases were concentrated in Southern and Midwestern states, seven states saw year-over-year price declines in January.