Less than half of newly constructed apartments that were completed in the fourth quarter of last year were rented within three months. That’s down from 60 percent a year earlier and is the lowest share on record aside from the first quarter of 2020, according to Redfin.
One reason that new apartments are taking longer to rent out is because there’s a near-record number of them hitting the market. There were 90,260 new apartments completed in the fourth quarter—the highest number on record with the exception of the second quarter of 2023.
According to the report, however, apartment builders have now slowed the number of projects they’re starting, as multifamily building starts have fallen below their 10-year historical average.
“If you’re looking for a rental and you’ve noticed a lot of new apartments popping up in your neighborhood, it may mean you have room to negotiate on price or ask for concessions like discounted parking or a free month’s rent,” said Redfin Senior Economist Sheharyar Bokhari. “But if you live in an area where the supply of new apartments is limited, deals may be harder to come by. Building more housing is a tried and true way to ease the housing affordability crisis, and with rent and home prices at historic highs, local and federal leaders should continue to encourage more construction.”
Be the first one to reply
Your Reply