Rents are falling in some hotspot cities due to a 'timing mistake' by homebuilders
Rents in Austin have fallen around 8% since mid-2023. Other US cities have seen increases up to 16%. Jay Janner/The Austin American-Statesman via Getty Images Rents continue to rise in major US cities, including New York and Chicago. In Austin, however, rents dropped 8% since mid-2023. Real estate consultant Aziz Sunderji explained the factors that create uneven housing markets across the country. Rents have moved in opposite directions across major US cities since mid-2023, and changes in where Americans are moving and how much those cities built in response could explain why. Cities like New York and Chicago have seen their rents rise , while others, like Austin, have seen them fall by around 8%, according to a study by Aziz Sunderji, founder of Home Economics, a publication about the US housing market. Sunderji found that increases in supply in expensive markets with decreased inflows of new residents pushed rents down, while the local labor market, as measured by remote work and te...
