Apartment rents are on the verge of declining due to massive new supply
Apartment rents have been cooling off sharply for several months, and they look like they’re about to go negative compared with a year ago.
Rents in August were just 0.28% higher than August 2022, according to real estate tech platform RealPage. Compare that to a year ago, when rents were posting 11% annual growth. With the exception of a very brief drop during the Covid lockdowns, rents have not shown negative annual growth in well over a decade. When they did, it was due to a recession hitting demand.
That is not the...