Rents are finally cooling off, bolstering Fed's case for cutting interest rates

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Rents are finally cooling off, bolstering Fed's case for cutting interest rates
RentsInflationHousing Crisis
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After years of soaring housing costs, renters are getting some relief as the Federal Reserve looks to extinguish inflation.

After years of soaring housing costs, renters may finally have something to celebrate.Economists say the most recent Consumer Price Index report signals that inflation in the rental market is easing, giving millions of Americans some financial relief. And with rents markedly slower to ease than other spending categories, the downshift highlights that the ferocious inflation that slammed households starting in 2022 is relenting in earnest.

The upshot: Landlords will focus on getting people in the door before making any drastic changes to rent, Ryan said. Capital Economics projects that rent growth will increase to upwards of 3% by the end of 2025. In the meantime, it's a renter's market. And depending on where they live, apartment hunters might have an easier time finding deal, Ryan said.

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