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73 August 2024 J O U R N A L However, the median asking rent for brand-new three-plus-bedroom apart- ments increased by 9.1%, suggesting that these units are in high demand. Since there is a growing supply of small apartments in America, rent declines in this area of the market have probably been the greatest. In contrast to the 22.2% increase for one-bedroom apartments, the 2.3% increase for two-bedroom apartments, and the 0.9% reduction for three-plus-bedroom apart- ments, the number of finished studio apartments increased by 32.6% during Q4 of last year. In the United States, the majority of apartment developers steer clear of targeting families in favor of accommodating singles. Building Owners Limited When Increasing Rent Prices The amount that rent rates can in- crease is being restrained by this backlog of new apartments. However, demand from tenants who are unable to afford to buy a property of their own is maintain- ing rents close to record high levels. A separate Redfin report indicat- ed that the median asking rent for an apartment in the U.S. increased by 0.8% annually in May 2024, reaching its high- est point since October 2022. The median priced apartment today requires a tenant to make $66,120, which is $11,408 more than what we think the average renter in the U.S. makes. However, the affordabili- ty of rentals varies significantly through- out markets. "If you're looking for a rental and you've noticed a lot of new apartments popping up in your neighborhood, it may mean you have room to negotiate on price or ask for concessions like discounted parking or a free month's rent," said She- haryar Bokhari, Senior Economist at Red- fin. "But if you live in an area where the supply of new apartments is limited, deals may be harder to come by. Building more housing is a tried-and-true way to ease the housing affordability crisis, and with rent and home prices at historic highs, local and federal leaders should continue to encourage more construction." PRICE GROWTH BEGINS TO MOD- ERATE IN ONCE- HOT PANDEMIC BOOMTOWNS O ver the past few years, the most popular housing markets in the United States have experienced significant changes, showing a pattern of ongoing development and evolution, according to CoreLogic's May Home Price Insights report. Per CoreLogic's research, South Dako- ta—home to the historical Mount Rush- more—is the state with the second-fastest rate of appreciation, and Camden, New