Rising Mortgage Rates and Slowing Construction Squeeze Renters as Landlords Regain Upper Hand

Renters across the country are facing a punishing housing market as higher mortgage rates and a slowdown in residential construction shift power back to landlords. With borrowing costs elevated, many would-be homebuyers are staying in the rental market longer, driving up demand and reducing vacancy rates. At the same time, a pullback in new apartment and single-family home building is limiting supply, exacerbating the imbalance. This combination is enabling property owners to push through steeper rent increases and offer fewer concessions, leaving tenants with fewer affordable options. The trend marks a reversal from earlier periods when a construction boom and low rates gave renters more leverage. For millions of households, the squeeze means a larger share of income going to housing costs, with little relief in sight. As long as mortgage rates remain high and builders hesitate, renters are likely to keep bearing the brunt of the market's strain.