Yardi Matrix data revealed that Boston experienced a 1% drop in rents for September, despite having one of the more limited supplies of new apartments under construction among major markets. The Midwest, which has long been among the leaders for rent growth, also saw several hub cities reverse course. Detroit posted a 0.4% overall rent decline, including a sharp 2.2% fall in the “lifestyle” category, which refers to units rented by choice rather than necessity. In Chicago and Columbus, rents dropped by 0.5% in September, further illustrating the broad-based nature of the pullback.
The month’s results also showed that rent cuts were not confined solely to markets affected by construction booms or excess inventory, which in recent years have most often tracked with negative rent growth. Instead, some locations with slow pipeline growth, like Boston, now face downward pricing pressure. The Yardi Matrix report points to this shift as an emerging signal of market softness, as reduced demand, changing demographics and broader economic headwinds influence pricing even in previously resilient locations.
Source: Negative Rent Growth Emerges in Boston and the Midwest
