Apartment rents across the United States are dropping quickly as huge numbers of new apartments hit the market while fewer people want to rent them.
The national median rent fell 1 percent from October to November, landing at 1367 dollars. Rents are now slightly lower than a year ago and more than 5 percent below their 2022 high. Vacancies remain at a record 7.2 percent, meaning many units are sitting empty.
Demand is weakening mainly because young adults are not moving out on their own. A growing share of people aged 18 to 34 are living with family instead of forming new households. This group is normally the core renter base, so when they pull back, the rental market slows sharply.
High rent prices in recent years and a tougher job market for new graduates are making it harder for them to move out.
Although construction is starting to slow, thousands of apartments already underway are still being completed. This keeps supply high while demand is weak. Rents usually dip in the fall, but this year the decline is much steeper.
Local issues are causing bigger drops in places like Las Vegas, Boston and especially Austin, where new construction continues.
At the same time, renters are searching more in cheaper cities such as Cincinnati, Atlanta and Kansas City. Midwest markets in general are gaining new attention.
Experts expect the market to steady somewhat next year, but for now high supply and uncertain demand keep pressure on rents.
