Understanding Rent Metrics: Why More Supply Often Means Slower Rent Growth
Source: https://therealdeal.com/
When many new apartments, such as large luxury apartment buildings, are built in a neighborhood, the median asking rent in those listings often increases. However, this does not mean supply is at fault. Data shows that about 70% of new units are market-rate and priced higher than the existing median, leaving listing-based statistics skewed upward.
By contrast, rent increases for lease renewals in older units tend to be smaller since landlords do not want to lose good tenants to these new buildings. These renewals are not captured in many widely reported data sets.
Media reports that link new supply development with rent hikes are misinterpreting the data, and new supply generally slows down rent growth overall, not increase it. To get a fuller picture, lease renewals, census data, and analyses over longer periods are more revealing than snapshot listing metrics.
Erik Engquist, Housing Supply Myth Rears Ugly Head in NYC, The Real Deal (Sept. 10, 2025), https://therealdeal.com/new-york/2025/09/10/housing-supply-skepticism-rears-ugly-head-in-nyc/.
Tags: Economics, housing supply, Listing vs. Renewals, New York, Real Estate Market, Rent Growth