Rent dropped for a fourth straight month in November, with all but six of the nation’s top 40 markets reporting flat or declining month-over-month rent.

New markets require new approaches and tactics. More than 250 experts and industry leaders will take the stage at Inman Connect New York in January to help you navigate the market shift — and prepare for success in 2023.  Register today.

Earlier this year, investors began talking about a slowdown in the pace of rent growth.

Now, in all but a handful of markets, they’re talking about asking rent for apartments dropping, and the slowdown is expected to continue, according to a report CoStar released on Friday.

Rent declined or stayed flat from October to November this year in all but six of the top 40 markets, the report reads. And while asking rent for apartments remains higher than what it was a year ago, the pace continued to drop.

The report is only the latest to find that after nearly two years of rapid rent increases, an increase in supply of rentals paired with weakening demand is putting downward pressure on the rental market.

“While sequential monthly rents have decreased for four straight months, we witnessed a slower decline from October to November, with rents down $6 or 0.4% compared to a decrease of 0.6% just 30 days prior,” said Jay Lybik, national director of multifamily analytics at CoStar Group. “As market conditions slip further out of equilibrium with new deliveries far outpacing demand, we expect monthly rents to continue their downward trend.”

As with other areas of real estate, the COVID-19 pandemic darlings for investors are cooling fastest.

Investors who had been targeting the Sun Belt for rental acquisitions are now watching as several Sun Belt markets where rent grew the fastest are now cooling off the fastest.

Year-over-year rents were up 22 percent at the end of 2021 in Las Vegas. They’ve now fallen to 0.4 percent at the end of November. In Phoenix, rent had climbed 20.8 percent to end last year. It was up just 0.4 percent in November.

Rent fell month over month by 1.1 percent in Raleigh, the biggest drop. 

Rent remains up nationwide year-over-year, CoStar found. Yet that growth fell to 4.1 percent in November, down from 4.8 percent in October.

None of the top 40 largest markets saw their year-over-year asking rent expand in November, CoStar said.

“Historically, the fourth quarter tends to be slower for multifamily, but we’re witnessing a weaker market overall with the downward rent growth and volatile market conditions,” according to the CoStar report.

“With a potential recession looming in the first half of 2023, the current mismatch between supply and demand appears likely to widen even more,” the report continues. “Therefore, the downward pressure on rents appears likely to continue across the nation, but especially in over-supplied Sun Belt markets.”

Year-over-year rent growth November 2022

  • Miami: 7.7 percent
  • Indianapolis: 7.5 percent
  • Orlando: 7.1 percent
  • Cincinnati: 6.9 percent
  • San Diego: 6.0 percent

Month-over-month rent growth November 2022

  • Palm Beach: 1.7 percent
  • Nashville: 0.3 percent
  • Miami: 0.2 percent
  • Minneapolis: 0.2 percent
  • Northern New Jersey: 0.1 percent

Email Taylor Anderson

Get Inman’s Property Portfolio Newsletter delivered right to your inbox. A weekly roundup of news that real estate investors need to stay on top, delivered every Tuesday. Click here to subscribe.

recession | websites
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription