Single Family Rent Growth Falls to 15 Year Low as New Supply Eases Pressure on Tenants
Rent growth for single-family homes has slowed to its weakest pace in 15 years, signaling that the once overheated rental market is finally cooling. According to Cotality, rents rose just 1.4% year-over-year in August, down from 2.3% in July and well below the 3% average seen in 2024. The slowdown reflects a flood of new housing supply, easing demand pressures, and growing affordability challenges for tenants.
The cooling trend spans all price segments, though regional differences remain stark. Chicago, Los Angeles, Philadelphia, and Washington, D.C. still saw rent increases between 2.6% and 4.7%, while Dallas experienced a 0.6% decline—its weakest in the nation—due to a surge of new multifamily construction.
The apartment sector mirrors the shift: national apartment rents fell 0.8% in September, marking the fifth consecutive month of annual declines, while the vacancy rate rose to a record 7.1%, according to Apartment List. Despite this moderation, rents remain 22% higher than in early 2021, keeping affordability strained.
Experts say the trend represents a market normalization, not a collapse. With supply expanding, job growth slowing, and inflation cooling, rent growth is expected to stabilize near long-term averages. “The rental market is finding its footing again,” said economist Molly Boesel. “For renters, it’s long-overdue breathing room; for investors, it’s the end of the double-digit boom era.”
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