Renters across the country can breathe easier this year as an influx of apartment supply pressures rent growth.
Asking rents for professionally managed apartments inched up just 0.2% in February from the previous year, according to data from RealPage. That’s notably lower than the historical average of 0.6% dating back to 2010.
“Muted rent growth is expected to continue throughout 2024 as supply continues to put downward pressure on rents,” RealPage said in a report.
Austin was the biggest laggard for rent growth, with a decline of 6.7% annually in February. Meanwhile, Virginia Beach led rent increases, with an uptick of 3.3%.
While strategists have been expecting a slowdown in rents, one inflation gauge, the Consumer Price Index, has shown rents to be sticky. Analysts say this is because there is a lag in the data. February CPI will be released on Tuesday.
Overall, apartment occupancy remained steady at 94.1% in February, according to RealPage, marking the third consecutive month at this rate.
RealPage noted that record-high construction activity in the apartment sector poses a challenge to occupancy levels this year, with nearly 962,000 units under construction nationally at the end of 2023 and 672,000 units expected to be completed this year.
