New apartments are taking longer to rent out because a near-record number of them are hitting the market.

A surge in new apartment constructions has indeed led to a situation where these units are taking longer to rent out. This increased supply is creating more competition among landlords, which in turn is limiting how much they can raise rental prices.

For example, in cities like Austin, Texas, a significant number of new apartments have been built, leading to lower rental prices and more incentives for tenants, such as rent-free months. This trend is expected to continue as more of these new units become available.

New apartments are taking longer to rent out because a near-record number of them are hitting the market.

Competion for tenants is now limiting how much prices can grow 👉 t.co/qPDzGOdl5v #rentals pic.twitter.com/W5by5rs1bs

— Redfin (@Redfin) July 28, 2024

Sources:
www.austinmonitor.com/stories/2024/02/austin-apartments-boomed-and-rents-went-down-now-some-builders-are-dismantling-the-cranes/

www.kut.org/austin/2024-02-29/construction-boomed-in-austin-and-rents-went-down-now-some-builders-are-dismantling-the-cranes

www.morningstar.com/news/marketwatch/2024070278/a-surge-of-new-apartments-is-hitting-the-market-renters-in-these-cities-stand-to-benefit-the-most