Housing Market Takes a Turn for Renters

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New apartments are seeing prices falling.

Prices for new apartments plunged to begin the year as the supply of properties entered the market, giving renters more options and, in turn, reducing the cost of leasing a home, according to real estate platform Redfin.The median asking price for renting a new studio apartment declined by close to 21 percent in the first quarter of 2024. One-bedroom apartment prices also fell by nearly 12 percent, while two-bedrooms saw their cost of a lease drop by more than 1 percent.

More than 90,000 new units were finished in the fourth quarter of 2023, Redfin pointed out, which has contributed to a nearly 7 percent vacancy rate—the highest level in three years.'Completions are still near their record high because there were so many construction projects kicked off during the pandemic moving frenzy that are just now being finished,' Redfin said in its analysis. 'This backlog of new units is putting a lid on how much rent prices can grow.

 

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