After a four years of steady growth, apartment rental rates have cooled. The Zillow Rent Index was $1,548 as of July, on par with rental prices over the last 12 months.
A surge of multifamily construction activity has lifted the nation’s vacancy rate for the last five quarters. The rate now sits at 7.3 percent.
The increasing rate of starts of multifamily structures (especially the spike in 2015) will lead to continued new rental supply over the short term. This means the trend of leveling vacancy rates and slower rent appreciation should continue.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development