Rent prices are increasing in these locations, while they are decreasing in these areas.

• In April, multifamily rents decreased by 0.8% compared to the previous year, as stated by Apartment List.
• A recent report from CoreLogic shows that single-family rents increased by 3.4% in March compared to the same month the previous year.
• Single-family rents in Seattle experienced the greatest year-over-year increase among the nation's 20 largest cities, with New York and Boston also seeing significant increases.

Due to the new work-from-home arrangement and migration trends, rent prices for single-family and multifamily homes were extremely high during the initial years of the pandemic.

Some rents are being pushed higher by different drivers, while others are being thrown cold water on.

In April, multifamily rents decreased by 0.8% compared to the same month the previous year, as reported by Apartment List. This was due to a significant increase in new supply on the market, with even more in the pipeline.

For the third consecutive month, apartment rents increased, but the growth rate was only 0.5%. Typically, rents increase in the spring, and this year's gain was smaller than usual and smaller than the previous month's increase. The national median rent in April was $1,396.

The Apartment List report suggests that the slowing of rent growth this month could indicate that the market is preparing for another sluggish summer, as this is typically the time when rent growth accelerates before the busy moving season.

The number of apartment vacancies has increased to 6.7% in March, which is the highest reading since August 2020. Despite a slowdown in new multifamily building permits, the number of units currently under construction is close to a record high. Last year saw the most new apartments enter the market in over 30 years.

A recent report from CoreLogic shows that single-family rents increased by 3.4% in March compared to the previous year. However, this annual growth rate is gradually decreasing due to the increasing supply of rental properties from build-for-rent companies.

In the first quarter of 2023, 18,000 single-family, built-for-rent homes were started, which is a 20% increase from the same quarter in 2022, according to a Census data analysis by the National Association of Home Builders. Over the past four quarters, 80,000 such homes began construction, representing a nearly 16% increase from the previous four quarters.

"Despite some weaknesses in the latest numbers, U.S. single-family rent growth overall strengthened in March, according to Molly Boesel, principal economist for CoreLogic. Specifically, overbuilt areas such as Austin, Texas continued to soften, decreasing by 3.5% annually in March."

According to Boesel, the sustained growth in single-family rents suggests that priced-out potential homebuyers are opting for rental alternatives that are similar in value. With mortgage rates returning to the 7% range and home prices continuing to increase, home buying has become increasingly unaffordable.

Seattle experienced the greatest year-over-year increase in single-family rents among the nation's 20 largest cities, with a rise of 6.3%. New York and Boston followed closely behind, both seeing increases of 5.3%. On the other hand, Austin, Texas, Miami, and New Orleans experienced declines in single-family rents, with Austin seeing the largest decline of 3.5%.

For the first time in 14 years, single-family, attached properties, specifically townhomes, experienced a decrease in rent growth.

"The decline in the attached segment of the single-family rental market is being driven by a subset of markets, primarily in Florida, but also in Austin and New Orleans. As multifamily apartments are being completed, some markets are gaining rental supply, which competes with the attached segment of the single-family rental market," Boesel stated.