Median Rent Falling in the U.S.
National rent asking prices fell year-over-year for the first time in three years, reflecting a surplus of supply and moderating new demand. Pandemic-era construction accelerated rapidly to meet the surge in demand. However, this demand is now leveling off due primarily to four factors:
The resulting supply-demand shift has caused median asking rent to drop relative to the same month last year, and in some geographic regions it has plummeted sharply. In Austin, TX for instance, where new tech jobs and a rapid increase in population fueled recent outsize economic growth, median rent is down double digits (-11%) compared to March 2022.
This rent decrease has implications for individuals, both as consumers of housing and as investors. For the ever-present cost-benefit comparison between renting vs. buying property, lower rent combined with higher mortgage rates may mean that renting is more financially attractive than buying, depending on a multitude of considerations.
Read more on this subject here.
- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management
