All articles tagged with #apartment rents
Rent growth for single-family homes has slowed to its lowest in 15 years, rising only 1.4% in August, with regional differences and a cooling in multifamily apartment rents due to increased supply. High-end properties are faring slightly better, but overall, the market shows signs of moderation after a period of rapid growth.
Oakland is experiencing the largest decrease in apartment rents among the top 100 cities in the US, with a 7.2% drop in median prices for one-bedroom apartments compared to the previous year. This decline is attributed to people leaving urban areas during the pandemic in search of more affordable or spacious housing options.
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.
Despite record high apartment rents in Manhattan, Blackstone Inc. is at risk of defaulting on a $270 million loan backed by 11 apartment buildings in the borough. Moody's Investors Service reports that the cash flow from the properties is not enough to cover the cost of all the debt.