Sun Belt cities, initially quick to build apartments to address the pandemic-driven demand surge, are now facing an oversupply challenge, resulting in rent decreases. Redfin’s April report underscores this trend, with notable rent drops across these cities due to surplus housing stock. Notably, nine of the top ten cities with the largest rent declines were in the Sun Belt, such as Phoenix (-4.6%). In contrast, the Midwest and Northeast experienced sharp rent increases amid reduced residential construction and increased demand.
