A panel on the side of a building in Hell’s Kitchen, New York, announcing an apartment is available for rental through a real estate broker.
Deb Cohn-Orbach | UCG | Universal Image Group | Getty images
The massive rise in the supply of new apartments in recent years is always absorbed, which has vacant positions and rents are weakening.
The national multifamilial vacancy rate increased to 7.1% in July, establishing a record of the monthly index of the apartments list, which dates back to 2017. The report notes that although the market has succeeded in the last boom in construction, it is still too constructed compared to demand.
The owners are not entirely as sustained as the start of this year, but it is even more a tenant market. Last year, more than 600,000 new multifamilial units reached the market, which represents an increase of 65% compared to 2022 and the newest offer in a single year since 1986, the list of apartments revealed.
For July, it took an average of 28 days to rent units after their registration, according to the report, slightly longer than in June but down compared to the recent 37 -day summit observed in January.
The rents were unchanged in July compared to June; The median rent was $ 1402, according to the apartments list. Rents culminated earlier this year, and rent growth is now stalled during the peak travel season when growth is generally the fastest.
The rents this month fell 0.8% compared to the same month of last year, according to the report. They approached positive annual growth at the start of this year, but have now been negative for three consecutive months, according to data from the apartments list.
“All our key indicators point to the slowly in progress on the multifamilial rental market – the growth of rents slides and the vacuum rate is at a record level,” said the report. “A return to tighter market conditions should always be on the horizon, but the prospects have been complicated by the macroeconomic boost caused by prices and other policies which are pursued by the Trump administration. This uncertainty seems to have modestly attenuated demand during this moving season.”
Régisally, rents increased in July from June in 37 of the country’s 54 metropolitan zones with a population of more than a million lists of apartments found. Less than half of these cities, however, see a positive growth in rents compared to a year ago. Loyer declins are the most widespread in the formerly very hot south and in the West mountain, according to the report.
Austin, Texas, wins the dubious price of being the softer rental market in the country, with rents of 6.8% compared to July of last year. Denver and Phoenix were not far behind.
On the other hand, San Francisco notes the biggest gains, with rents of 4.6% compared to last year. Other solid markets include Fresno, California and Chicago.
“Although the supply wave is smuggled, the number of units that struck the market in the first half of this year was still higher than the long -term average. Construction should slow down the second half of this year and in 2026, the conditions should change,” said the report.