As the more robust spring activity begins, apartment rents have increased slightly over the past few months. Yet, in Spring, they were exclusively up 2.6% from Spring 2022.
Rent growth is now slightly lower than the pre-pandemic average of 2.8% after the record-setting pace of the previous year. San Francisco, for example, is experiencing a more rapid decline than others.
As more supply enters the market, vacant positions are also beginning to return to normal levels. They have increased from 6.4% in February to 6.6% now.
At the end of last year, over 917,000 apartment units were being built all over the United States. It will raise the number of apartments in the country by 4.9%, according to RealPage Market Analytics. These are the most units currently under construction since the beginning of the 1970s.
The Midwest, including Chicago, Indianapolis, Cincinnati, and Louisville, all saw rents rise by 6% compared to a year ago. The top five were all in Boston, where rents were up 6%.
Core logic says that rents for single-family homes are also decreasing, but they are still much higher than rents for apartments. Of the 20 major markets tracked by CoreLogic, Orlando, Florida, had the highest rent increase from a year ago, at 8.9%.
However, this is down from its most recent peak of 25% annual growth in April 2022. In January, single-family rent growth was at its lowest since spring 2021. In January of this year, Miami experienced yearly growth of 39%, but that has decreased to approximately 7%.