Raleigh rents are still high, for now

Rents in Raleigh are still much higher than they were before the pandemic. But since the second half of last year, they've been on a steady downward trajectory.

By the numbers: In the fourth quarter of 2022, the average asking rent in Raleigh was $1,494, up 8.6% from a year earlier, per economic research firm Moody's Analytics.

• The good news: In November, rents fell faster in Raleigh (1.3%) than any other large metro area.

What's happening: Many would-be home buyers chose to rent longer last year, sustaining apartment demand, economists at Moody's Analytics say. But folks are hitting their spending limit.

What they're saying: Year-over-year rent growth slowed in the second half of the year across the board, "and we expect further deceleration as new supply makes it to market at the same time the labor market softens," senior economist Lu Chen tells Axios.

Zoom out: Rents are already falling in cities that were near the epicenter of the pandemic home-price boom, Axios' Matt Phillips reports, citing Realtor.com data.

What we're watching: New apartment construction. The expected surge in supply could help bring down prices.

• Yes, but: Experts say most cities will "remain undersupplied with the kind of affordable units that see the highest demand," per The Wall Street Journal.