The National Multifamily Housing Council recently released a report examining how the boom in “luxury” apartment construction has surprisingly subdued rent growth across all housing sectors in the U.S. Despite these new units initially commanding higher prices, their influence reaches into more affordable apartment markets, alleviating rental pressures nationwide. This process, known as “filtering,” occurs as higher-income residents migrate to newer developments, thereby enhancing housing affordability for lower-income households. The analysis underscores that increased supply, across all types of housing, equals improved affordability.
