Rent Prices Are Dropping, But Why?

The housing market is changing. More apartments are being built, but fewer people are renting them. This is pushing rent prices down. In November, the average rent for an apartment in the U. S. was $1, 367. This is a 1% drop from October. It's also down 1. 1% from November 2024. Rents have fallen 5. 2% from their peak in 2022. Young people are struggling. Many are living with family instead of renting their own place. This is because rents have been high for a long time. Also, jobs are harder to find for young people just starting out. The number of empty apartments is high. In November, 7. 2% of apartments were empty. This is a record high. More apartments are being built, but fewer people are renting them. This is pushing rent prices down. Some cities are seeing bigger drops in rent. Las Vegas is one of them. Tourism is slowing down there. This means fewer jobs. Boston is another city. Federal funding for biotech is dropping. Also, fewer foreign students are coming to study there. People are looking for cheaper places to live. Cincinnati, Atlanta, and Kansas City are popular. These cities are more affordable. Washington, D. C. , is less popular now. It used to be the top spot. The market is expected to stabilize. Construction is slowing down. But there are still a lot of apartments being built. The job market is also shaky. This could mean fewer people will be able to afford to rent.