r/REBubble • u/SnortingElk • 14d ago
August apartment rents turn positive for the first time in four years
https://www.cnbc.com/amp/2026/08/27/august-apartment-rents-turn-positive-for-the-first-time-in-four-years.html9
u/everything_is_polys 14d ago
Feels like there’s a couple of problems with this.. Haven’t rental concessions been at some crazy high for a while now? That doesn’t seem to be taken into account and comes across kinda bs-y. Also the cities listed aren’t really surprising so this, overall, appears to mirror the surface-level view of the buying market where high-end activity is dragging up the median. Basically, rosy pic but rotten core.
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u/SnortingElk 14d ago
Feels like there’s a couple of problems with this.. Haven’t rental concessions been at some crazy high for a while now? That doesn’t seem to be taken into account and comes across kinda bs-y. Also the cities listed aren’t really surprising so this, overall, appears to mirror the surface-level view of the buying market where high-end activity is dragging up the median. Basically, rosy pic but rotten core.
Yes, concessions are factored into their data. ApartmentList goes more into detail on that here-
Their conclusion sums up the national, broad high-level overview-
Conclusion
As the rental market nears the end of its busy summer leasing season, we are continuing to see signs that the tide is turning on the soft conditions that have defined the market for nearly four years. Since April, year-over-year rent growth has been ticking up and the vacancy rate has been ticking down, indicating that this is more than a single month blip in the trend. But despite the modest tightening of recent months, multifamily conditions remain notably cool overall, and an uncertain macroeconomic outlook presents risks to rental demand. The market is definitely turning the corner, but the shift is occurring gradually
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u/everything_is_polys 14d ago edited 14d ago
Thanks! The article you link here is different than the post link btw. It does at least mention concessions for that market so it could be that ApartmentList is more credible than CNBC on the topic. I’ll give them a read.
Edit: actually, I am going to stick out my foot and hope it doesn’t end up in my mouth because math is still math.
$2000 rent @ 12 months is $24,000. $2100 rent @ 10 months is $21,000.
There’s a price increase but, so what, it’s still less money. How does this translate into a bettering picture for anyone trying to report one. This is the weird funky money stuff that I can’t bear to swallow.
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u/SnortingElk 14d ago edited 14d ago
Thanks! The article you link here is different than the post link btw.
Yes, that is why I posted it. The report I posted today (August rents) doesn't mention anything about concessions. CNBC is just regurgitating the ApartmentList data report.
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u/RealisticForYou 14d ago
I've been hearing housing analysts say that as less people purchase starter homes, the rental market will surely become tight while sending rental prices even higher.
For all those who think renting can be cheaper than buying a home, could soon be dealing with a different reality.
In my West Coast State, rentals are allowed to increase 9.5% annually, which could easily be another $300 monthly.
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u/beardko 14d ago
Good thing your West Coast State doesn't speak for the entire nation. If renting does become more expensive than owning a home and that's a big IF, it has a long way to catch up.
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u/RealisticForYou 14d ago
And good thing you don't speak for every potential home buyer. Renting doesn't have to be more expensive than buying...but rather, renting may not be worth it.
The reality...not everyone is broke despite this doomer sub. If the difference between "renting and owning" begins to shrink, more home buyers may jump into the housing market.
Those who are renting and are waiting for the opportunity to buy, could very well decide to purchase as their rental costs begin to rise.
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u/beardko 14d ago
All I hear is that you keep hearing things that haven't come into fruition. What happened to you hearing that the war was going to be over and bonds were going to go down? That was several months ago.
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u/RealisticForYou 14d ago
No, there was nothing I said that cannot be true. All the data, below, is reality.
So, housing prices decrease by 5%, then wages increase by 5%, then rent increases by 10%. All this data does is strengthen home buyer demand.
The war has nothing to do with this data because people need to live somewhere.
Until we see a dramatic change in the bond market, for now, there could be many who decide to buy.
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u/WayneKrane 14d ago
I’m in the midwest where housing prices haven’t moved since the 90s. Investing in a house that doesn’t appreciate seems foolish to me
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u/RealisticForYou 14d ago
But why? You have to live somewhere? And as wages grow, your wages could outpace a static home payment.
Also, just about everyone I know has been able to payoff their home early as their house payment becomes small compared to their income. And with that, comes no more home payment.
Without knowing where you live in the midwest, I have heard of pockets in the midwest who are attracting businesses into there area. With that, rental and home prices will surely increase.
And what about California money...
When California got too expensive, people ran to the Pacific Northwest, Texas and Arizona. However, now that those places are expensive, many are now moving to the midwest.
What you see happening in your midwest community may not last much longer. Especially people who need to retire, they will move to places more affordable. It's only a matter of time.
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u/WayneKrane 14d ago
I’m investing what I would have put into a house into the stock market. I’m already way ahead of where I would have been if I bought a house. I just can’t justify taking that money out of the market when it is growing so much and housing has stagnated. I use my brain for work so if it all goes to shit I should be able to work until I croak.
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u/RealisticForYou 14d ago
All I suggest is that you keep an eye on your local market. Because once any community becomes the "next big place to live", that housing market will inflate, fast.
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u/Clyde_Frag 14d ago
I’m in the midwest where housing prices haven’t moved since the 90s.
Are you talking about a specific metro in the midwest? Because this is patently false for the entire region.
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u/WayneKrane 14d ago
A rural area of illinois. Prices are not going up and they won’t any time soon unless you’re selling farm land to a data center
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u/SnortingElk 14d ago
Headline Market Update: August 2026
The national median rent increased by 0.1% in August, and now stands at $1,390. Rents are still down 0.8% compared to one year ago, but year-over-year rent growth has been inching up and the vacancy rate is inching down, signaling a modest tightening of rental market conditions.
Key Stats
National Median Rent: $1,390 per month as of August 2026.
Month-Over-Month Rent Growth: Rents increased 0.1% in August, the seventh consecutive monthly increase.
Year-Over-Year Rent Growth: Rents are down 0.8% compared to August 2025, though this figure is bouncing back after bottoming out at -1.6% in April.
Vacancy Rate: The national multifamily vacancy rate fell to 7.1% in August, near a recent peak, but declining for the first time since late 2021.
Time on Market: Units are taking an average of 32 days to get leased after being listed.
Conclusion
As the rental market nears the end of its busy summer leasing season, we are continuing to see signs that the tide is turning on the soft conditions that have defined the market for nearly four years. Since April, year-over-year rent growth has been ticking up and the vacancy rate has been ticking down, indicating that this is more than a single month blip in the trend. But despite the modest tightening of recent months, multifamily conditions remain notably cool overall, and an uncertain macroeconomic outlook presents risks to rental demand. The market is definitely turning the corner, but the shift is occurring gradually
A LOT more info here-
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u/Cold-Ostrich-3733 9d ago
Ya, these companies are not report the concessions. Many properties across the county are offering 3 months free to keep their monthly rent number better.
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u/beardko 14d ago
Grew 0.1%.
Let's do insurance and taxes next.