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U.S. Rents Dip as Sun Belt Supply Boom Cools Prices, While Manhattan Sets New Highs

A recent building boom expanded supply in several southern and Mountain West metros.

Overview

  • The nationwide median asking rent in February was roughly $1,357–$1,400, down about 1.5% from a year earlier yet still about 20% above pre‑pandemic levels, according to Apartment List and Realtor.com.
  • Across 216 metros, 57% posted year‑over‑year declines, with steep drops in Austin (about 6%–7%), San Antonio, New Orleans and Denver (around 5%), and Phoenix and Tampa (near 4%), per Apartment List.
  • By contrast, tighter markets saw gains, including Virginia Beach and the Bay Area (about 5% year over year), Chicago (4%) and St. Louis (3%), reflecting local supply constraints.
  • Manhattan rental inventory fell for the 24th straight month to 11,670 listings in February, and the median rent hit a record $5,000, with StreetEasy also reporting a $4,700 median asking rent up 6.9% year over year.
  • Harvard researchers report a record 22.7 million cost‑burdened renter households, while recent coverage notes high construction costs, a luxury tilt in new supply and seasonal forces that could limit further relief.