For the past several years, a housing affordability crisis has plagued renters across the U.S., who have been hit with hefty rent hikes and lack of supply amid increased competition from priced-out homebuyers. But according to Insider, 2023 could be the year renters regain bargaining power from landlords.
The national vacancy rate for apartments rose to 5% in December 2022, up from a record seasonal low of 2.5% the year prior, and that falling activity, paired with fresh supply in overheated markets, could cause prices to fall during the coming months.
Something strange is happening in the apartment market. The US job market remains healthy, and the unemployment rate hit a 50-year low in January despite a wave of layoffs in high-profile industries. Wage growth is strong, and people have plenty of savings. Yet property managers are having a harder time getting new renters through the front door.
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