The national trend of falling rents is holding steady, but a recent report reveals a tale of two markets. While sunbelt cities like Nashville and Austin see significant dips, three Midwestern metros are experiencing record highs in asking rents.
According to Realtor.com’s April report, Austin leads the nation in rent decline, with a staggering 11.5% drop from its September 2022 peak. Nashville isn’t far behind, with rents falling steadily as well. This trend is attributed to a surge in new apartment construction in these previously hot markets, leading to more vacancies and driving prices down.
But not all regions are mirroring this trend. Indianapolis, Milwaukee, and Minneapolis are defying the national dip and reaching new heights in rental costs. This is likely due to a combination of factors, including low unemployment rates and a slower pace of new apartment development in these areas. Cities like Cincinnati, Cleveland, and Chicago are also showing signs of potential rent increases in the coming months.
Experts suggest the national decline in rents may be nearing its bottom, with some stabilization expected on the horizon. The situation in the Midwest, however, presents a unique contrast. Whether these record highs are sustainable or a temporary blip remains to be seen.
While some renters may find relief in Sunbelt cities, others in the Midwest may face a more competitive and expensive market.
