Rents are falling in some hotspot cities due to a 'timing mistake' by homebuilders

Rents in some US hotspot cities are declining due to a 'timing mistake' by homebuilders, according to real estate consultant Aziz Sunderji. In Austin, rents have fallen by about 8% since mid-2023, while cities like New York and Chicago have seen increases of up to 16%. Sunderji attributes these divergent trends to changes in migration patterns and the level of new housing supply in each market. His analysis suggests that increased supply in cities with reduced inflows of new residents has pushed rents downward.

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