Apartment rents have declined in every major metropolitan area throughout the United States over the past six months, through January.
The new trend is expected to last into 2024, as more units come online, reported The Wall Street Journal.
The nation is expected to see the biggest wave of newly constructed apartments since 1986, after two years of steep price gains, according to property data firm CoStar Group.Nearly half a million new apartment units are expected to become available by the end of 2023, after more than 400,000 units were added in 2022, said the data firm, as builders try to fulfil high demand.
The median price of new rent leases were 3.5 percent lower in January from August, when apartment prices began to ease, according to Apartment List for its March 2023 listing report.
New lease rent growth ranged about 2–6 percent last month compared with the year before, a significant decline in the pace of growth in early 2022, according to The Wall Street Journal.The report saw nationwide average apartment prices, fall six consecutive months in a row for the first time in five years.
None of the 52 metropolitan areas followed by Apartment List experienced any positive rent growth during the period.The Wall Street Journal reported that four other housing data reports showed that new lease rents continued to fall or remained flat in January compared with the previous month.
