"Rental Market Shift: Apartment Rents Decline as Supply Surges"

Apartment rents in the US are on the verge of declining as a result of a massive influx of new supply. Rents in August 2022 were only 0.28% higher than the previous year, a significant drop from the 11% annual growth seen in the past. The high supply of new units, with over a million built in the past three years, has given renters more options and reduced landlords' pricing power. While rents have already gone negative in some local markets, the Midwest and Northeast regions continue to see strong rent increases. The supply is expected to remain high through next year, potentially pushing rents lower until 2025, but a drop in new construction in 2026 may allow rents to recover.