The Housing Market Is Tilting in Favor of Renters
With a near-record amount of apartments coming on line, frustrated would-be homebuyers are probably better off leasing anyway.
Apartment construction is booming.
Photographer: Justin Sullivan/Getty Images
The US housing story of 2023 is one of two markets moving in different directions. For buyers, dwindling supply and a modest uptick in demand has meant home prices are on the rise again , even with 30-year mortgage rates hovering around 7%. The rental market is trending in the opposite direction, with rising vacancy rates as new apartment buildings hit the market and put downward pressure on rents - at least in metros where there's been a lot of construction in recent years.
This is creating a short-term opportunity for frustrated would-be homebuyers, especially in metro areas that have seen the most construction. In places such as Nashville, Charlotte and Austin, where rent growth is sluggish and lots more supply will be coming on line, these folks can get a great deal on a new apartment now and hope the market for homebuyers is better next year.