- Increasing Supply: A major factor in the moderating rent growth is the influx of new apartment construction, which has increased the available rental supply in some areas, particularly in the US. This added supply is starting to give renters a bit more leverage.
- Varied Regional Performance: Rent changes vary significantly by region. Some Southern and Western US markets, where new supply has been strongest, are seeing year-over-year rent declines. In contrast, parts of the Midwest and Northeast are experiencing higher rent increases due to lower supply relative to demand.
- Rental Competitiveness: Despite the increase in supply, the rental market is described as "very tight" in many regions, with a high number of renters competing for each available unit.
Varied Regional Performance
Supply and Demand: