Have Rent Prices Finally Peaked? Data Shows ‘Significant Dip’

According to Apartment List, their national rent index fell 0.7% during October. This decrease marks the second straight month-over-month decline and the most significant single-month dip in the index's history, dating back to 2017.

The results suggest a rapid cooling in the rental market; however, the timing is consistent with a seasonal trend already present in pre-pandemic years.

Thankfully for renters' budgets, the prices will likely continue to drop as we enter the winter season, which is historically slow in the rental market.

Despite the decline, rent growth throughout 2022 is still outpacing pre-pandemic growth, even though it has slowed significantly from last year's peaks. So far this year, rents are up across the nation by 5.9%, compared to a staggering 18% at this time last year.

Year-over-year growth has been decelerating since the beginning of the year, but it is probable that 2022 will still end up being the second fastest year of growth since the start of the index.

The cooldown of the growth comes alongside the continued easing in the market's supply side. Apartment List's vacancy index now sits at 5.5%. In the past couple of months, the vacancy rate has ticked upward again after plateauing over the summer.

The recent slowdown is not contained to just one part of the country. The nation is experiencing this cooldown, which could ease the minds of those looking to move to notoriously high-rent cities such as New York and Los Angeles.

Boise, Idaho, was one of the first rental markets to explode in the early stage of the pandemic, and the city is already seeing a sharp decline.

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