Where rents are falling (or rising) most
· Axios
A building boom across the South and Mountain West has cooled rents — but that relief could fade as new construction slows.
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Why it matters: Housing is unaffordable for many. Although the median U.S. rent for new leases is down 1.5% from a year ago, it's still roughly 20% above pre-pandemic levels, at $1,400 a month, per Apartment List.
- And a new Harvard report finds a record number of renters are "cost-burdened," spending more than 30% of their income on rent and utilities.
Zoom in: The median rent in Austin, Texas — a building hot spot — was down nearly 6% this February from a year earlier.
- It fell roughly 5% in San Antonio, New Orleans and Denver, according to data from Apartment List, a rental site.
- Phoenix (-4%), Tampa (-4%) and Salt Lake City (-2%) also posted big declines.
The other side: Rental markets are tighter in the Midwest, Northeast and parts of the West Coast.
- Median rent was up around 5% in Virginia Beach and the Bay Area from a year earlier, 4% in Chicago and 3% in St. Louis.
- These are regions where building is harder, largely due to zoning restrictions and a lack of space.
Between the lines: High building costs and a glut of supply in places like the Sun Belt have made developers cautious about starting new projects.
- When new units do arrive, they're mostly luxury apartments.
Meanwhile, more people are renting — partly because homebuying remains out of reach — keeping rents from falling much further nationwide.
What we're watching: Fewer people move in the colder months.
- Expect rents to climb as the peak summer season nears.