Is it a renter's market? It depends on where you live

Key Points:

• Renters are currently benefiting from a renter's market in many U.S. cities, with landlords offering move-in incentives such as one to three and a half months of free rent, particularly in cities experiencing an apartment construction boom like Nashville, Phoenix, and Austin.
• Nationally, rent increases have slowed to 1.9% year over year in April, lagging behind inflation at 4.2%, and some data even shows rents declining by 1.5%, providing financial relief amid rising living costs.
• The surge in apartment construction in 2024, with around 600,000 new units built—the highest in 38 years—has increased supply, leading to a 7.3% rental vacancy rate, the highest in over a decade, especially in Sun Belt cities.
• However, this renter's market is not uniform; cities like Chicago have seen rent increases of 5.4% year over year due to high demand and limited supply, making affordable housing difficult to find.
• Move-in incentives are temporary, and renters often face annual rent increases; despite current perks, average rents have risen nearly 37% since the pandemic began, meaning housing remains costly overall.