## Apartment Rent Growth Stabilizes in Sun Belt Markets Amid Insatiable Demand **Suburban Phoenix, Arizona** Apartment markets in some of the fastest-growing Sun Belt cities, including Suburban Phoenix, are showing signs of cooling as the blistering growth seen throughout the pandemic subsides. However, rents remain higher than a year ago, driven by insatiable demand for homes and apartments. Average apartment rent in Suburban Phoenix climbed at a slower pace of 0.3% in December, compared to a scorching 1.4% the previous month. Yet, it's still 11.8% higher than last December. **Tampa, Florida** Tampa is also experiencing similar trends. Monthly rent increases slowed to 0.1% in December, down from 0.6% in November. However, annual rent growth remains elevated at 16%, albeit lower than the 16.9% peak in November. **Dallas, Texas** Dallas is another example, with rent growth moderating to 0.2% in December, after reaching 0.9% in November. Despite the slowdown, annual rent increases stand at 9.2%, higher than the national average of 7.3%. **Causes of Rent Stabilization** Several factors are contributing to the slowdown in rent growth. One is the Federal Reserve's interest rate hikes, which are making mortgages more expensive and reducing the number of potential homebuyers. This, in turn, is putting more pressure on the rental market. Another factor is the growing number of new apartments coming online. For example, in the Phoenix area, over 10,000 new apartment units were added in 2022. **Outlook for 2023** Experts predict that rent growth will continue to moderate in 2023, but remain elevated compared to pre-pandemic levels. The high demand for housing, coupled with limited supply, will continue to support rents. For renters, this means they can expect to see more moderate rent increases in the coming months. However, it's still important to budget carefully, as rents are still significantly higher than a year ago.
← anthony rizzo a good trade option for the yankees anthony rizzo injury →
