Rent Reversal

New-lease asking rent growth is plummeting! After rising 14.5% Y-o-Y through last May, new-lease rent increases rose just 2% in 5/23 compared to 5/22, and may well turn negative, something that since the Housing Bust only happened during the first few months of Covid in 2020. With new-lease rents barely rising, renewal rent increases are also softening because rental vacancy rates have risen by a substantial two percentage points Y-o-Y.