Rent Comes Down for the Wealthy, While Rising for the Rest
February 06, 2024 by The decrease in overall rent growth is heavily attributable to an oversupply of high-end homes and apartments in cities with above average completions, including in Austin, Raleigh, Charlotte, Salt Lake City, and Phoenix according to data from Marcus & Millichap Research Services. When those higher end residences are excluded, rent growth nationally was still up 2% (instead of 0.3%) nationally in 2023 due to steady demand for middle and lower tier housing. Some cities \had rent increased for middle income housing by 3%-6% in 2023. There is relatively little new supply for lower and middle income tenants and buyers due to high construction and labor costs. The oversupply in upper-tier housing still provides the benefit of overall reduced rent growth compared to 2021 and 2022.