Rent Relief Will Be Brief as Apartment Crunch Looms: Conor Sen

The current state of the market for renters is akin to being in the eye of a multi-year hurricane. Rents surged in 2021 and 2022, driving a wave of apartment construction that helped to stabilize or even lower prices this year. But storm clouds already loom on the horizon — new construction has slumped and financial conditions don’t support a pickup, threatening another supply crunch in the not-too-distant future.

Groundbreakings for new apartments are down 35% from a year ago as high-construction metros such as Austin and Atlanta see rents decline. Building activity is also being held back by onerous funding ...