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Rents Drop Annually for 33rd Consecutive Month, With Further Renter Relief Likely, Realtor.com Says

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Rents Drop Annually for 33rd Consecutive Month, With Further Renter Relief Likely, Realtor.com Says

Asking rents in the US fell annually for a 33rd successive month in April, with a strong rise in new multi-family construction indicating continued relief for renters ahead, News Corp's (NWS, NWSA) Realtor.com said Wednesday.

The median asking rent across the 50 largest US metropolitan areas dropped 1.7% year over year to $1,673 last month, the 33rd straight month of annual decreases for studio to two-bedroom properties, according to a report by the online real estate portal.

"Many renters have experienced meaningful relief over the past nearly three years, and although completions have slowed, forward-looking indicators are renter-friendly," Realtor.com Chief Economist Danielle Hale said.

In the first quarter, new multi-family groundbreakings surged almost 20%. Units that break ground today typically reach the market within one to two years, according to Hale. "So the pipeline points to continued downward pressure on rents well into 2027," Hale said.

Among major US regions, the Northeast saw new multi-family groundbreakings almost double on an annual basis in the first quarter, while the number of newly completed multi-family units soared 42%, marking the strongest growth of any region, according to the report.

New groundbreakings in the West sank to their lowest first-quarter level since at least 2017, while the number of newly completed multi-family units plunged 38%. This makes the West the only region where completions have dropped below pre-pandemic norms, Realtor.com said.

"As we move into the spring and summer leasing seasons, we expect the median asking rent to tick up modestly on a monthly basis, which is the typical seasonal pattern," Realtor.com Economist Jiayi Xu said. "But given the sustained level of multi-family construction relative to pre-pandemic norms, year-over-year declines are likely to continue through 2026. Modest rent relief is still the story for most renters."

Realtor.com said it expects the rental supply relief to continue into the next "several" years amid the ongoing strength in new multi-family construction.

Price: $30.62, Change: $+0.20, Percent Change: +0.67%

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