Where is the rental market headed in 2024?

Apartment List economists released predictions for 2024 rental market
Those looking to rent should have more opportunities to negotiate
Year-over-year rent growth is expected to bounce back slightly

Updated: Dec 7, 2023 / 11:26 PM CST

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(NewsNation) — Apartment List economists released predictions for the 2024 rental market, and they believe renters will have more opportunities to negotiate prices and lease terms in the new year.

“We’re in the midst of a historic multifamily construction boom, and as softening demand collided with increasing supply, our national vacancy index continued to ease in 2023 and recently stabilized at 6.4 percent, slightly higher than the 2019 average,” the report reads. “The key takeaway? The blistering rental surge has cooled for now thanks to easing demand and rising supply.”

2024 will be the strongest for multifamily supply growth, data from the Census Bureau suggests. This includes duplexes, townhomes and apartment complexes.

When it comes to year-over-year rent growth, economists expect it to crawl out of negative territory in 2024, but it won’t rise above single-digits.

Lastly, economists predict that home prices will remain high, even though mortgage rates are expected to ease. This would create more long-term rental opportunity.

You can access Apartment List’s full year-end report here.