A sign on the side of a building in Hell's Kitchen, New York City, has an apartment available for rent through a real estate agent.
Deb Cohn-Orbach | UCG | Universal Images Group | Getty pictures
The massive increase in the new residential care in recent years is still being absorbed, and this increases and the rents weaken.
The national vacancy rate of apartment buildings rose to 7.1% in July and set a record in the monthly index of the apartment list, which goes back to 2017. The report states that the market has exceeded the highlight of this recent construction boom, but is still overcrowded with regard to demand.
Landlords are not quite as crowded as at the beginning of this year, but it is still more a tenant market. Last year, more than 600,000 new apartments came onto the market, which corresponds to an increase of 65% compared to 2022 and the new offer since 1986, as the apartment list has determined.
For July it took an average of 28 days to rent units after being listed, according to the report, a little longer than in June, but after the recent high of 37 days in January.
The nationwide rents remained unchanged compared to June in July. According to the apartment list, the average rent was $ 1,402. The rents reached its peak at the beginning of this year, and rental growth has now described itself in the peak period when growth is usually the fastest.
According to the report, rents decreased by 0.8% this month compared to the same month of the previous year. They had stimulated a positive annual growth at the beginning of this year, but have been negative for three months, according to the data from the apartment lists.
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“All of our most important indicators point to the continuing inertia on the multi-family rental market and the rental growth and the vacancy rate is an all-time high,” says the report. “A return to stricter market conditions should continue to be on the horizon, but the prospects were complicated by macroeconomic whirlpool trauma, which were caused by tariffs and other guidelines that are caused by the Trump administration. This uncertainty seems to dampen the demand during this move.”
Regional rents rose in July from June in 37 of the country's 54 metropolises with a population of more than 1 million in the apartment. However, less than half of these cities have a positive rental growth compared to a previous year. According to the report, the most widespread in the formerly hot south and in the mountain vest.
Austin, Texas, gains the dubious award to be the country's softest rental market, with the rents of 6.8% compared to July last year. Denver and Phoenix were not far back.
On the other hand, San Francisco has the greatest profits, with rents increasing by 4.6% compared to the previous year. Other strong markets are Fresno, California and Chicago.
“Although the wave of supply declines, the number of units that come onto the market in the first half of this year was still above the long -term average. Since the construction is expected to continue to slow down in the second half of this year and in 2026, the conditions are likely to be shifted,” it is likely that the report.