Rental Price Growth Pace Slows Down Considerably

[Sanat Bhandari]

According to this article by CNBC, rental prices have witnessed the slowest growth in the last 19 months. Some excerpts from the article:

- Rental rates have witnessed the slowest pace at 3.4% in November '22

- Sun belt rents rose by just 0.9%, waning off the insane growth seen over the last couple years. However, rents and demand for single families in sun belt are growing considerably faster than apartments due to a 'the supply of former being smaller than the latter'

- Midwest, on the other hand, had rising rental rates of 10% and 9% in Indianapolis and Kansas City respectively

- Multifamily construction has slowed down considerably with an 18% decrease in permits for the same in November vis-a-vis October

Unsurprising that midwest is still going strong despite slowdowns across the country. Most midwestern markets are a fairly solid choice for investing due to being insulated from the ebbs and flows of the coastal markets.