flexiblefullpage - default
Currently Reading

Rent Growth Posts Slowest Annual Gain in 18 Months

billboard - default

Rent Growth Posts Slowest Annual Gain in 18 Months

Rents are still growing faster than they were before the start of the pandemic, but as landlords lose pricing power, gains are shrinking

November 18, 2022
Exterior of orange and white multifamily apartment building
Image: Stock.adobe.com

The median U.S. rent rose 4.7% in October to $1,734, the slowest annual gain posted in 18 months, according to CNBC. Though rates are still historically high, double-digit rent growth is beginning to cool nationwide after reaching unsustainable levels at the height of the pandemic. Year-over-year rent growth has been slowing for nine consecutive months and has been in the single digits for the past three months, but strong demand from priced-out homebuyers could prevent prices from slipping in the near future.

Developer confidence in the multifamily housing market fell sharply in the third quarter of this year, and NAHB anticipates significant declines in new multifamily construction in 2023. 

“High mortgage interest rates may be causing potential homebuyers to hit pause and remain renters, keeping pressure on rent prices,” said Molly Boesel, principal economist at CoreLogic. “However, the monthly rent change was negative in September, resuming the typical seasonal pattern for the first time since 2019, which could signal the beginning of rent price growth normalization.”

Read more

Related Stories

Housing Markets

Could These Midwestern Metros Be the Next Top Real Estate Markets?

Out-of-state homebuyers are flocking to Midwestern markets like Lafayette, Ind., and Topeka, Kan., where they're finding affordable homes, high-paying jobs, and robust local economies


Are Slower Rate Hikes Enough to Bring Buyers Back to the For-Sale Market?

Homebuyer demand rebounded slightly after a small dip in the 30-year fixed-rate mortgage, but an inflated economy continues to pose affordability challenges even in a cooling market


Buyers Cite Unaffordable Prices as Biggest Hurdle to Homeownership in Q4 2022

Elevated home prices continue to pose an obstacle for house hunters, but most are persevering 

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.