U.S. rental demand declines following 2021 surge

New real estate data shows that apartment demand is starting to ease.

Video Transcript

- All right, let's get to our chart of the day. And this has to do with apartment demand, which is starting to ease, according to real estate data provider, RealPage. It saw rental demand turn negative in the third quarter for the first time in 30 years. Negative demand means more people are moving out than in, suggesting that higher rent prices are taking a toll on would-be renters after last year's resurgence in rental demand.

Having moved recently myself, experiencing 37% price increases, I can testify to this rental inflation. And sticking with real estate, mortgage rates have jumped to their highest level in more than two decades. The average rate on a 30-year fixed loan increased to 6.92% as of today, Thursday. According to Freddie Mac's weekly survey, last time we saw that was April 2002.