Sun Belt Renters Benefit as Supply Boosts Housing Affordability

Since mid-2023, rents have fallen in fast-growing U.S. metros like Austin and San Antonio due to heavy new housing supply and slower inbound migration. Austin rents dropped about 8%, San Antonio 4%, with declines also in Denver, Phoenix, and Dallas. Conversely, New York, San Francisco, and Chicago saw strong rent growth, supported by stable migration and home prices near historical norms. Remote work and tech employment had minimal impact on these trends.