According to Apartment List’s March 2023 Rent Report, following five consecutive months of month-over-month reductions, rent growth turned positive again in February, albeit by just 0.3 percent countrywide.
Notwithstanding that small accomplishment, the underlying picture for landlords in the near future is less than favorable.
According to the survey, this year may be the first time since the early days of the epidemic that landlords are vying for tenants rather than the other way around.
The report states that there are more multifamily units being built right now than there have ever been since 1970.
In contrast to the previous two years, when renters had to compete for a finite amount of available inventory, as this new inventory enters the market throughout the course of the year, property owners may be competing for tenants to fill their units.
The demonstrated rental growth resembles that of February before the outbreak. Rent growth is slowing year over year and has reached its lowest point since April 2021, at 3%. According to Apartment List, it is projected to “fall more” in the upcoming months.
Vacancies now stand at 6.4%, and supply is decreasing. In February, rents rose in 62 of the top 100 cities in the country.
The research states that supply limitations will continue to ease because a record number of multifamily housing units are now being built.
No major metro region in the nation has had positive rent growth during the past six months.
With a 1.5 percent increase, Boston experienced the fastest rent growth in the country.
Although it continues to be one of the nation’s slowest rental markets when assessed over the course of the pandemic as a whole, the Boston metro area ranks among the top 10 for quickest year-to-year rent growth, according to the research.
According to Apartment List, the vacancy rate might even go above that pre-pandemic level for the remaining months of 2023.
According to the study, new apartment development has resumed after experiencing delays due to pandemics in recent years.
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