Rent Relief: 7 U.S. Cities Where Rents Are Slowly Dropping

A surge in new apartment construction has increased rental supply and pushed asking rents down year-over-year in seven U.S. metros, led by Austin with a 6.6% decline; other named cities include Jacksonville, Denver, Phoenix, Las Vegas, Miami, and San Diego.

Rents in several large U.S. metro areas have shown modest year-over-year declines after a long period of steady increases. The change is linked to a nationwide surge in new apartment construction that has expanded the available rental supply. That added supply is reported to have raised vacancy rates in some markets and increased competition among landlords. The article highlights seven metropolitan areas where asking rents have eased. Key details: - A nationwide increase in multifamily construction has added rental units and is cited as a principal factor behind falling rents. - Austin-Round Rock-San Marcos, Texas, is reported as seeing the largest decline, with a 6.6% year-over-year drop in median asking rent. - Denver-Aurora-Centennial, Colorado, is reported at a 4.8% decline year-over-year, and Jacksonville, Florida, is reported at a 4.2% decline year-over-year. - Phoenix-Mesa-Chandler, Arizona, is reported near a 4.0% decline year-over-year, while Las Vegas-Henderson-North Las Vegas, Nevada, is reported at a 3.0% decline year-over-year. - San Diego-Chula Vista-Carlsbad, California, is reported at a 3.5% decline year-over-year, and the Miami-Fort Lauderdale-West Palm Beach metro is reported at a 2.7% decline year-over-year. - Property managers and landlords in these markets are reported to be offering more concessions and negotiating more frequently as vacancies rise. Summary: The reported shift has eased some pricing pressure on renters in the named metro areas and has coincided with more concessions from property managers. Undetermined at this time.