(NewsNation) — Annual nationwide rent growth turned negative in August, the first time it had done so in the summer month since the beginning of the pandemic, according to Apartment List’s September National Rent Report.
The national rent index decreased by 0.1% in August, and rents are down by 1.2% compared to a year ago. In other words, apartments across the country are 1.2% cheaper today than a year ago.
“This is a major deceleration from recent years, when annual rent growth neared 18 percent nationally and soared to over 40 percent in a handful of popular cities,” Apartment List analysts wrote.
Chris Salviati, a senior housing economist for Apartment List, said it’s not unusual to see a seasonal dip in rent prices, but it is uncommon to see it start in August.
Salviati said the negative rent growth signaled an early end to the summer “busy” season that was sluggish from the start.
September is when rents typically start to drop, according to Apartment List.
Rents are down year-over-year in 72 of the nation’s 100 largest cities. Apartment List analysts expect rent declines will continue sweeping the nation during the winter when fewer people are moving.