Some of those areas are, like Austin, just beginning to see modest drops in average rents but remain much pricier than just a few years ago. The Miami metro area, for instance, has had the nation’s biggest jump in rents since 2020, at 40%. Orlando, Florida, rose 32% over the same time, according to Apartment List.
In the past six months, rents dwindled just 1% in each city.
“Recent gains in housing supply have helped to slow rental prices and housing costs, although I would be cautious about calling rent decreases of 1% very significant,” said Randy Deshazo, director of economic development and research at the South Florida Regional Planning Council. Soaring prices are particularly painful in the region, he said, because affordability, in terms of housing costs compared with income, is the worst in the country.
In some parts of the Northeast and Midwest, where the construction boom hasn’t been quite as robust, rents have continued to rise in the past six months as of September. Rents were up by 7% in Providence, Rhode Island, for example. During the same period, the increase was 5% in Boston, New York City and Hartford, Connecticut.
Estimates of the nation’s housing shortage, which many experts blame for high rents, vary. Fannie Mae last year estimated that there were 4.4 million too few units in large metro areas, and Realtor.com this year pegged the shortage at 2.3 million units. About 1.4 million units were finished in 2022, the most since 2007, and another nearly 947,000 were finished in 2023 through August, according to a U.S. Census Bureau construction survey.