According to the most recent Realtor.com report, the housing market remains tilted in favor of renters due to a surge in multifamily home construction.
In September, median rental rates in the 50 largest metropolitan areas decreased to $1,747, marking a $29 decline from the peak observed in July 2022.
Although rent prices are still considerably higher than their pre-pandemic levels, they have experienced an annual decrease for units of all sizes for the fifth consecutive month.
“As rents ease and both home prices and mortgage rates continue to climb, it’s become more economical to rent than to buy in nearly all major markets,” said Chief Economist at Realtor.com Danielle Hale in a statement. “However, even with an influx of new apartment units coming onto the market and putting a lid on rent growth, renters are claiming these new apartments faster than before the pandemic.”
In the Tampa Bay area, the median asking rent for one- to two-bedroom units now stands at $1,720, marking a 4% year-over-year decrease.
This trend was observed in other southern metropolitan areas as well, with the top three metros experiencing the most significant year-over-year rent declines being Austin, Texas (-7.3%), Dallas (-6.2%), and Orlando (-5.4%).
Nationally, the median asking rent was $1,747, reflecting a 0.7% decline year-over-year, but a substantial 24% increase since 2019.
Data from the Census Survey of Market Absorption of New Multifamily Units for the first quarter of 2023 reveals the completion of 82,310 apartments and buildings featuring five or more units. Impressively, 61% of these newly finished apartments were rented within three months, underscoring strong demand in the market.
It’s worth noting that units with asking rents below $1,250 had the highest absorption rates during this period, emphasizing the robust demand for affordable rental options.
The report also highlights that in September, the annual completion rate of multifamily buildings with five or more units reached 445,000 units, indicating a 10.1% month-over-month increase and a 15.0% year-over-year increase. While this increase in rental inventory benefits renters, the rapid absorption of these units suggests that rental market demand remains robust.
For a detailed explanation of the methodology used in the report, please refer to the provided link.