National Rent Growth Sluggish

Hey Austin! So, check it, Apartment List just dropped their latest rent report, and it's giving us some insights. Rent prices here have been on the rise for three months straight, but it's not exactly skyrocketing. Seems like the market's taking its sweet time. In April, the national median rent inched up by 0.5% to $1,396. But hold up, the pace of growth chilled a bit compared to last month. Could be a hint that we're in for another laid-back summer in the housing scene here in Austin.

Source: Apartment List (May 2024)

 “Since the second half of 2022, seasonal declines have been steeper than usual and seasonal increases have been more mild. As a result, apartments are on average slightly cheaper today than they were one year ago. Year-over-year rent growth nationally currently stands at -0.8 percent and has now been in negative territory since last summer. But despite this cooldown, the national median rent is still more than $200 per month higher than it was just a few years ago.” - Source: Apartment List (May 2024)

Also, Apartment List is dropping some knowledge: usually, rent growth picks up around this time of year, but it hit pause this month. Same deal last year, where growth flattened out after a bit of a positive streak. Last month, things seemed like they might bounce back, but this month's estimate is saying the sluggishness in the rental market might stick around.

Jiayi Xu and Danielle Hale over at Realtor.com are echoing similar vibes. In March 2024, the median rent for 0-2 bedroom spots across the top 50 metros in the US dipped 0.3% compared to last year but went up by $14 from the previous month, landing at $1,722. That makes it the eighth month in a row with year-over-year declines. The median rent in the US was $36 less than its peak in August 2022, but still $313 more than it was back in 2019.

Source: Realtor.com (May 2024)

“Rising shelter costs have been a major driver of the overall rate of inflation. Stabilizing market rents could make it difficult to see further improvement in the overall rate of inflation, complicating the Fed’s policy decision and underscoring the need for additional housing construction to alleviate the supply shortage that is contributing to higher costs.” - Source: Realtor.com (May 2024)

Another report, this time from Keith Griffith at Realtor.com, sheds light on where rent's climbing the highest. Turns out, they're all up in the Northeast and Midwest, showing how the balance between supply and demand can really impact those price jumps impacting the national rent have sluggish growth. T

Here are the cities feeling the rent hike vibes:

• Chicago, IL ($1,846, up 4.3%)

• New York City, NY ($2,876, up 3.8%)

• Kansas City, MO ($1,340, up 3.4%)

• Boston, MA ($3,023, up 3.3%)

• Indianapolis, IN ($1,297, up 3.3%)