The United States is experiencing a construction boom of unprecedented proportions, with a particular focus on multi-family housing. This surge in construction activity, ignited post-pandemic, has led to a dramatic increase in the supply of rental units. The implications of this trend are far-reaching, particularly for tenants who have faced soaring rental prices in recent years.

A Flood of New Units

Never before has the U.S. witnessed such a rapid pace of multi-family unit completions. June 2023 marked a historic milestone, with more units completed than in any single month in nearly half a century. This surge in supply has injected a much-needed dose of competition into the rental market, empowering tenants with more choices and negotiating power.  

Rent Relief on the Horizon

As the availability of rental units increases, landlords are finding themselves in a more competitive landscape. To attract tenants, they are increasingly offering rent concessions, such as discounts, incentives, or perks. In fact, over a third of landlords reported offering at least one rent concession in July, a significant jump from the previous year.  

This shift in landlord behavior is translating into more affordable rental options for tenants. While rents remain elevated due to the pandemic-induced price hikes, the rate of increase has slowed considerably. Median asking rents for all apartment sizes have declined, offering some relief to renters who have been burdened by rising costs.