The rollercoaster that has been the national rental market took a dip last month per new numbers out from Redfin. Compared to May 2022, rents have declined 1 percent nationwide—the largest drop since 2020.
Out West, asking rents declined 2.1 percent from a year earlier, nearly four times the national pace. But other U.S. regions saw increases, with rents climbing 5.4 percent in the Northeast, 4.9 percent in the Midwest and 0.8 percent in the South.
The typical asking rent in the U.S. last month came in at $1,995 per month.
High mortgage rates have turned many would-be sellers into landlords, flooding the rental market with more supply than 12-18 months ago This, in turns, means landlords have less leeway to hike prices because they’re grappling with a rise in vacancies as renters have more options to choose from.
Redfin also notes that the national rental supply has also increased because America has been building more multifamily housing. Completed residential projects in buildings with five or more units rose 24.2 percent year-over-year on a seasonally adjusted basis to 400,000 in April—the most recent month for which data is available.