(NEXSTAR) – Slowing apartment construction and surging demand for rental units have allowed landlords to raise their asking prices, especially in 10 major metro areas, according to a new report from Redfin.
Data from the St. Louis Fed shows that the new construction of privately-owned multi-unit buildings peaked in October of 2023, and has fallen steadily ever since. According to Redfin, that equated to a 45% drop in the number of new apartments being added to the market since the pandemic-era construction wave.
“Apartment construction boomed during the pandemic, but many of those projects have since wrapped up and fewer new ones are breaking ground,” said Redfin Senior Economist Sheharyar Bokhari in the report. “Builders are pumping the brakes due to high financing costs, elevated construction expenses and weaker investor appetite. With fewer new apartments coming on the market, renters have fewer options to choose from and landlords are regaining the ability to raise prices.”
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