Redfin reported on Friday (3-10-23) that the median US asking rent increased 1.7% year-over-year to $1,937 in February. This marks the smallest increase in nearly 24 months and the lowest level in a year. A year earlier, rents were up nearly 10 times that much: 16.5%.
In the report, Redfin says February was the nineth straight month in which rent growth slowed on a year-over-year basis. Rents fell 0.3% from January. Nonetheless, the median asking rent remained 21.4% higher than in February 2020, the month before the pandemic began.
Redfin notes that rent growth has cooled as persistently high housing costs, inflation, and recession concerns and a slowdown in household formation have made people less like to move, putting a damper on demand for new leases.
According to the National Association of Home Builders (NAHB), a jump in supply due to a boom in apartment construction has also contributed to the slowdown in rent growth. The NAHB reports the number of apartments under construction is up 24.9% year-over-year to 943,000, the highest level since 1974.
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.