Welcome back to another blog post. Today we are looking at the current state of multi family rental rates across the nation and how housing has weighed on inflation.

On average across the nation we are seeing declining rents to the tune of a little less than 1%. Even though many states are seeing declining rents, others are not and we think there is one defining factor to decipher the two. Red states and Blue states.

Within the red states you are seeing declining rents and this can be attributed to the drastic increase in supply, especially in Sunbelt markets. Cities like Austin, Phoenix, Dallas, and Tampa are experiencing year over year declines in median rents anywhere from -2% to -4%.

On the contrary, cities in the blue states like: Milwaukee, Washington DC, Chicago, and Detroit are experiencing median rent increases from 2.5% to 4%.

Interesting to see that this is almost the complete opposite. Some believe that the increase in blue states is contributed by the lack of housing. This is something that is quite interesting and definitely something to consider when investing in certain markets.

Thank you,

The Nest Journal

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