Condo rents have elevated barely for the previous few months, because the seasonally stronger spring exercise kicks in. However in March they have been solely up 2.6% from March of 2022.

That is the smallest annual acquire since April 2021, in line with Condo Record. And, after final 12 months’s record-setting tempo, hire development is now barely beneath the pre-pandemic common of two.8%. Some markets, resembling San Francisco, are falling at a much bigger charge.

Vacancies are additionally beginning to rise again to regular ranges, as extra provide comes available on the market. They stand at 6.6%, up from 6.4% in February.

Over 917,000 house models have been below building throughout the U.S. on the finish of final 12 months, which can enhance the nation’s current house base by 4.9%, in line with RealPage Market Analytics. That is the very best variety of models below building because the early Nineteen Seventies.

“Even when demand continues to strengthen, a sturdy provide of latest stock hitting the market this 12 months ought to hold costs in test. It appears like 2023 is shaping to be a 12 months of modest optimistic hire development,” researchers at Condo Record famous within the report.

Markets seeing the largest hire jumps in contrast with a 12 months in the past have been principally within the Midwest, with Chicago, Indianapolis, Cincinnati and Louisville all up 6%. Boston rents rounded out the highest 5, additionally up 6%.

A number of main cities are seeing rents decline. Phoenix and Las Vegas rents have been down 3% 12 months over 12 months, and San Francisco dropped 1%.

Rents for single-family properties are additionally easing, however are nonetheless far hotter than house rents. Single-family hire development was 5.7% 12 months over 12 months in January, the bottom charge of appreciation since spring 2021, in line with CoreLogic.

Of the 20 main markets tracked by CoreLogic, Orlando, Florida, had the very best hire acquire from a 12 months in the past at 8.9%, however that’s down from its newest peak of 25% annual development in April 2022. Miami was seeing 39% annual development final January, however that is right down to about 7% this 12 months.

“Whereas hire development is slowing in any respect tracked worth tiers, declines for the lowest-cost leases usually are not as vital, which raises affordability considerations. Annual hire development for lower-tier properties was about 3 times the pre-pandemic charge, whereas positive factors within the highest tier have been practically one-and-a-half instances throughout the identical interval,” Molly Boesel, principal economist at CoreLogic.