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Another pressing concern for the housing market is the recent slowdown in rent growth, hitting its lowest rate in over a decade at just 1.5% year-over-year. This sluggish growth — especially as it trails behind increasing property taxes and insurance rates — presents a potential downturn for the housing market as landlords are pressured to sell, likely exacerbated by declining rental income.
While cities like Detroit are experiencing significant rent increases, many other regions, including Austin and Orlando, are witnessing negative annual rent changes. This trend may foreshadow further declines in property values if housing demand continues to contract.