US Apartment Rents Rise at Fastest Pace in More Than a Year in July
Rents near $2,000, rising at the fastest pace in over a year
According to Zillow’s July Rental Market Report, the typical US asking rent rose 2.3% year-over-year to $1,962 in July, the fastest annual growth rate in more than a year. Despite the acceleration, 2 in 5 rental listings offered a concession.
Zillow attributed the shift primarily to tightening supply after a historically large wave of apartment construction expanded renter options over the past two years. Multifamily permits in Q2 were 31% below their most recent peak in 2022.
Single-family rents rose 3.0% year-over-year to $2,314, outpacing the 1.7% increase for multifamily units, which reached $1,786. Zillow forecasts multifamily rents to rise about 1.9% this year, while single-family rents are expected to increase about 2.9%.
Commenting on the report, Zillow Chief Economist Mischa Fisher said:
“Renters have benefited from one of the most favorable supply surges in decades. But nationally, we’re approaching an inflection point. The supply tailwind is fading, rent growth is picking back up, and concession rates that have been climbing for two years are expected to start easing.”
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.