U.S. Multifamily Market Sees Regional Divide Between Rent Growth and Declines

The rental market is experiencing a regional divide, Realtor.com said Wednesday. While rents dropped in many parts of the country, eight of the 10 Midwestern markets in the 50-metro report for September saw year-over-year rent increases in September, led by Cincinnati with 3.4% annual growth.

In contrast, among the markets with the steepest rent declines last month, eight out of 10 were in the South, mostly driven by a surge in new multifamily housing developments. Nashville withstood the sharpest annual decline in rents at 4.8%

“The balance between housing supply and demand is a key factor shaping regional rent patterns,” said Danielle Hale, chief economist at Realtor.com. In markets across the South, increased multifamily inventory is easing competition among renters and driving down prices. “On the other hand, in the Midwest, where demand has still outpaced supply, we continue to see rising rents. Nationally, the relative stability in rent prices should translate into slower shelter inflation in the months ahead, easing one of the biggest recent drivers of price increases.”

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