July’s Apartment Rents Fell For The First Time Since 2020

Phoenix Business Journal
In July, apartment rental rates declined for the first time since mid-2020, with median rents falling by 0.1% for studios and one-bedroom units, 0.3% for two-bedroom units, and 2.4% for larger units, according to Redfin. Despite these drops, the overall median asking rent rose by 0.4% year-over-year. Several rapidly growing metro areas, especially in the Sun Belt, saw significant rent reductions and increased landlord concessions due to a surge in new apartment construction. Nationwide, 33.2% of rental listings offered concessions in July, up from 25.4% the previous year. Nevertheless, there is concern over the potential oversupply of rental units. The national rental vacancy rate remains steady at 6.6%, with larger buildings experiencing a slight increase in vacancy rates. Multifamily loans are also under scrutiny, as a significant amount of debt is set to mature between 2024 and 2026.