Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Business

Here’s where rents are rising — and where they’re falling

by May 22, 2024
May 22, 2024
Here’s where rents are rising — and where they’re falling

Driven by the work-from-home dynamic, as well as by new migration patterns, both single-family and multifamily rent prices were red-hot during the first years of the pandemic.

Now different drivers are pushing some rents higher — and throwing cold water on others.

Multifamily rents in April were 0.8% lower than they were in the same month last year, according to Apartment List. Rents cooled because a massive amount of new supply entered the market, with still more in the pipeline.

Apartment rents did rise for the third straight month, but the growth, at 0.5%, is very small. Rents usually begin to rise in the spring, and the gain this year is not only smaller than usual but smaller than the previous month’s gain. The national median rent in April was $1,396.

“This is typically the time of year when rent growth is accelerating heading into the busy moving season, so the fact that growth stalled this month could be a sign that the market is headed for another slow summer,” according to the Apartment List report.

Apartment vacancies are also climbing, hitting 6.7% as of March, marking the highest reading since August 2020. New multifamily building permits are slowing down, but the number of units currently under construction is near a record high, and last year saw the most new apartments hit the market in over 30 years.

Single-family rents are much stronger, up 3.4% in March year over year, according to a new report from CoreLogic. That annual increase, however, continues to shrink as more supply comes onto the market from build-for-rent companies.

Roughly 18,000 single-family, built-for-rent homes were started during the first quarter, a 20% increase from the first quarter of 2023, according to an analysis of Census data by the National Association of Home Builders. Over the last four quarters, 80,000 such homes began construction, representing a nearly 16% jump from the prior four quarters.

“U.S. single-family rent growth strengthened overall in March, though some weaknesses are revealed in the latest numbers,” said Molly Boesel, principal economist for CoreLogic. “Overbuilt areas, such as Austin, Texas, continued to soften, decreasing by 3.5% annually in March.”

The continued strength overall in single-family rents indicates that potential homebuyers who are priced out of the home-purchase market are choosing to rent similar alternatives, according to Boesel. Mortgage rates have risen back into the 7% range, and home prices continue to rise, making it harder to buy a home.

Of the nation’s 20 largest cities, Seattle saw the highest year-over-year increase in single-family rents at 6.3%, followed by New York at 5.3% and Boston at 5.2%. Those leading the declines were Austin, Texas, down 3.5%; Miami, down 3.2%; and New Orleans, down 1.4%.

For the first time in 14 years, however, single-family attached properties, namely townhomes, posted a year-over-year rent decline.

“The decrease in the attached segment is being driven by a subset of markets, mostly in Florida, but including Austin and New Orleans. As multifamily apartments are being completed, some markets are gaining rental supply, which competes with the attached segment of the single-family rental market,” Boesel added.

This post appeared first on NBC NEWS
previous post
Pixar is laying off 14% of its workforce as Disney scales back content
next post
Trump says he ‘will never advocate imposing restrictions on birth control’ or other contraceptives

Related Posts

Armenian organized crime rings charged with stealing $83...

May 22, 2025

Capital One and Discover merger approved by Federal...

April 19, 2025

Meta announces 5% cuts in preparation for ‘intense...

January 15, 2025

Boeing to cut 17,000 jobs as losses deepen...

October 14, 2024

FTC chair hopes Amazon, Facebook won’t get ‘sweetheart...

January 8, 2025

IMAX CEO expects $1.2 billion in box office...

February 22, 2025

CVS replaces CEO as profits, share price suffer

October 19, 2024

Inflation pressure lingering from pandemic is keeping Fed...

May 30, 2024

Bank of America CEO says U.S. consumers and...

May 31, 2024

Walmart, Chipotle and others feel the heat over...

July 10, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • Saudi defense minister secretly meets with Trump to discuss Iran de-escalation, Israel: sources

      July 4, 2025
    • Trump administration swarms SCOTUS with emergency requests and sees surprising success

      July 4, 2025
    • Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

      July 4, 2025
    • Trump administration torpedoes SCOTUS with emergency requests and sees surprising success

      July 3, 2025
    • Mike Johnson touts ‘beauty of unified government’ after Trump’s ‘big, beautiful bill’ sails through Congress

      July 3, 2025
    • White House wants Obama intel officials ‘held accountable’ for role peddling 2016 Russia hoax

      July 3, 2025

    Categories

    • Business (1,295)
    • Politics (6,278)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved