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Apartment rents drop further, with vacancies at record high

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Apartment rents drop further, with vacancies at record high


A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.

A slew of new supply is still making its way through the multifamily housing market. That, coupled with weakening demand, especially from the youngest workers, is pushing vacancies up and rents down. 

The national median rent for apartments fell 1% in November from October, and now stands at $1,367, according to Apartment List. It was the fourth consecutive month-over-month decline. Apartment rents are down 1.1% from November 2024 and have fallen 5.2% from their 2022 peak. 

“Earlier this year, it appeared that annual growth was on track to flip positive for the first time since mid-2023; however, that rebound stalled out and reversed course during a particularly slow summer,” according to Apartment List researchers.

After hitting a record high for this index, which dates back to 2017, in October, the national multifamily vacancy rate remained at 7.2% in November. 

The historic surge in multifamily construction over the past few years is now pulling back, but a good supply of new units is still coming online at a time of much weaker demand. 

The fall historically sees the biggest slowdown in multifamily rents, but this year it’s even more pronounced. CoStar reported the biggest monthly drops in median rent it had seen in 15 years of tracking. The primary reason is that more young people are struggling to form new households.  

“That 18- to 34-year-old group … I think it’s up to 32.5% of those now are living with family, and that’s the highest it’s been in a while,” said Grant Montgomery, CoStar’s national director of multifamily analytics. “I think it reflects high rental costs that have risen over the years, as well as the tougher job market for young folks just coming out of college.” 

“That is where a lot of demand traditionally comes from, the core renter demand is from that sort of younger base,” he said.

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The weakness is showing up in stocks of the major public apartment REITs. Names like AvalonBay, Equity Residential and Camden Property Trust are all down year to date. 

Some markets are seeing rents drop faster than others, due to local economic factors. Las Vegas, for example, is experiencing slower tourism, which in turn hits jobs there. Boston has seen a decline in federal funding for biotech as well as a drop in foreign students for its colleges and universities; both are impacting its rental sector hard. Austin, Texas, is seeing the biggest hit to rents, thanks to still more construction of multifamily units. 

While rents are softening nationally, and landlords are boosting concessions, renters are increasingly searching in more affordable markets. 

Cincinnati was the market most searched for, followed by Atlanta and Kansas City, Missouri, according to a Yardi report that looked at where apartment hunters were active last summer, the traditionally busiest time for new leasing. St. Louis saw the biggest quarterly jump in tenant interest, and Washington, D.C., dropped from the top spot to No. 4. 

“The Midwest, in particular, drew more attention than ever, signaling that many of its ‘hidden gem’ markets are no longer a secret,” according to the report, which found 11 of the top 30 cities for renter demand were in the Midwest.

Yardi also revised its expectations for 2026 supply, saying that while new supply will decline through 2027, a larger-than-expected under-construction pipeline caused it to increase its previous quarterly estimates for 2025 and 2026 by 6.8% and 2.5%, respectively.

As construction continues to slow into next year, the overall market should stabilize somewhat, according to the Apartment List report.

“That said, the supply boom still has a bit of runway remaining, and the demand outlook has begun to appear weaker amid a shaky labor market,” researchers wrote.



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Greenland ‘will stay Greenland’, former Trump adviser declares

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Greenland ‘will stay Greenland’, former Trump adviser declares


Faisal IslamEconomics editor

Getty Images Donald Trump's former chief economic advisor wearing a dark suit. Getty Images

Gary Cohn advised Trump on the economy in his first term

Oliver SmithBusiness producer, Davos

Donald Trump will not be able to force Greenland to change ownership, a former top adviser to the US president has told the BBC.

IBM’s vice chairman Gary Cohn, who advised Trump on the economy in his first term, said “Greenland will stay Greenland” and linked the need for access to critical minerals to his former boss’s plans for the territory.

Cohn is one of America’s top tech bosses, a leader in the race to develop AI and quantum computing, and served under Trump as director of the White House National Economic Council.

In a sign of how seriously business leaders are taking the crisis, he warned “invading an independent country that is part of Nato” would be “over the edge”.

He also suggested the president’s recent comments about Greenland “may be part of a negotiation”.

“I just came from a US congressional delegation meeting, and I think there’s pretty uniform consensus with both Republicans and Democrats that Greenland will stay Greenland”, he said.

Greenland would be happy for the US to increase its military presence on the island, he said, with the North Atlantic and Arctic Ocean “becoming much more of a military threat”.

The US could also negotiate an “offtake” agreement for Greenland’s vast yet largely untapped supplies of rare earth minerals, Cohn suggested.

“But I think, you know, invading a country that doesn’t want to be invaded – that’s part of a militaristic alliance, Nato – seems to me to be a little bit over the edge at this point”, he said.

Cohn indicated the president may be overstating his demands as part of a negotiating tactic – something he says the president has done successfully in the past.

“You’ve got to give Donald Trump some credit for the successes he’s had and he’s many times tried to overreach to get something in a compromise situation,” he said.

“He has overreached in advertising something to end up getting what he actually wants. Maybe what he actually wants is a larger military presence and an offtake.”

The start of this year’s World Economic Forum in the Swiss ski resort of Davos has been overshadowed by the president’s increasingly aggressive stance on the arctic territory, with many political and business leaders alarmed about the potential geopolitical and economic impact. Trump is due to address delegates at the gathering on Wednesday.

While Cohn expressed reservations about some of the president’s actions, he said the US administration had “various different motives” for what they were doing.

He said Trump’s decision to intervene in Venezuela was “a path” to disrupt the country’s relationship with China, the biggest market for its oil, as well as Russia and Cuba.

Cohn also thinks that the president has become increasingly focused on the importance of rare earth minerals, noting that “Greenland has quite a supply” of the resources.

Those minerals are critical to the development of Artificial Intelligence (AI) and quantum computing – also a major talking point in Davos.

US Treasury Secretary Scott Bessent on Monday hit back at claims Trump has blamed his escalating threats over Greenland on the fact he was not awarded the Nobel Peace Prize.

In a message to Norway’s Prime Minister Jonas Gahr Støre, Trump blamed the country for not giving him the prize and said he no longer feels obliged to think only of peace.

Bessent said: “I don’t know anything about the president’s letter to Norway, and I think it’s complete canard that the President will be doing this because of the Nobel Prize.

“The president is looking at Greenland as a strategic asset for the United States. We are not going to outsource our hemispheric security to anyone else.”

AI ‘to be part of every business’

Developments in quantum computing and AI are seen as critical not just for the US economy and productivity, but for US strategic influence in the world.

“IBM is dead centre in what’s going on in quantum today. We have the largest amount of quantum computers in use today” Cohn said, highlighting that his company has put many of these computers into use across America in firms from the banking industry to medicine.

“AI is going to be the backbone for data that feeds into quantum to solve problems we’ve never been able to solve”, he added.

“Where we’re heading is AI is going to be part of everyone’s enterprise. AI and quantum are going to be working in the enterprise behind the scenes to make every company more efficient. And we’re just at the beginning of that sort of long road, and that’s going to take probably another three to five years to get there.”

Earlier this month, Google, also a US company, told the BBC it had the world’s best-performing quantum computer. The race to develop the technology is the other key talking point – apart from Greenland – at the World Economic Forum.



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Are ‘tech dense’ farms the future of farming?

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Are ‘tech dense’ farms the future of farming?


David SilverbergTechnology Reporter

Getty Images An aerial view of a farmer plowing a field in Colorado. Getty Images

The US has fewer but more “tech dense” farms according to a government report

Jake Leguee is a third-generation farmer in Saskatchewan, Canada.

Since his grandfather bought the 17,000 acres in 1956, the Leguee family has grown canola, wheat, flax and green lentils.

As a child, he watched his father and grandfather spending hours riding their tractor to sow seeds and spray crops. Sweat would coat their shirts after those long, hot days.

“It was a lot less efficient back then,” says Leguee. “Today, technology has vastly improved the job that we do.”

To keep his farm competitive, Leguee has made several innovations, particularly when it comes to crop spraying.

With software and remote cameras attached to his John Deere tractor, he can kill the weeds much more efficiently, a practice every farmer has to do before planting seeds.

“It can look down and spray a nozzle when the sensors pick a weed, while we’re going around 15 miles an hour,” Leguee says.

He adds that he saves on pesticide spray since the nozzles only turn on when weeds are detected, as opposed to the kind of blanket spraying he used to do.

The return-on-investment for adding these new layers to his farm operations are often high, Leguee adds.

“There are low-cost solutions that won’t be as expensive as new spraying tech, and they could be an app to help you better keep your records, for example,” he says.

Jake Leguee Smiling and wearing a stripey blue and grey shirt, Jake Leguee stands in front of large tractor.Jake Leguee

Jake Leguee’s farm in Saskatchewan has been in the family since the 1950s

It’s a lesson that farmers across North America are taking on board.

A 2024 McKinsey survey found that 57% of North American farmers are likely to try new yield-increasing technologies in the next two years.

Another report, from 2022, by the US Department of Agriculture said that while the number of farms in the country is shrinking, the farms that remain are becoming “tech dense”.

Norah Lake, the owner and farmer at Vermont’s Sweetland Farms, says to get a successful harvest, “there’s a lot of looking forward and then backwards and then forwards and then backwards in crop farming”.

She once used Microsoft Excel to plug in the figures for, say, their yields from a recent harvest, or a given year, and see how they compare to years prior.

“I’d want to know that if we planted 100 bed feet of broccoli, what did we actually produce?” she says.

More recently, Lake, who grows vegetables such as asparagus, tomatoes and zucchini, as well as pastured meat, has been using software and an app from a company called Tend.

She wanted to digitise and streamline those laborious tasks into a piece of tech that she can view on her cellphone or computer.

Now she can input those harvest numbers into Tend, and the software can give her details, and advice, on how to manage her crop best for the coming harvest.

“We can use Tend to calculate the quantity of seed that we need to order based on the row feet of a particular crop that we want to harvest,” she says.

Syngenta Group A tablet computer shows a map of a farm with someone pointing to a particular field.Syngenta Group

Cropwise uses 20 years of weather data to help help advise farmers

There’s no shortage of tech for farmers to choose from.

Sygenta, the argri-tech giant based in Switzerland, offers farmers the software Cropwise, which uses AI and satellite imagery to guide farmers on what to do next with their crops, or alerts them to emergencies.

“It can tell the farmer that you need to visit the southeast corner of your field because something is not right about that section, such as a pest outbreak,” says Feroz Sheikh, chief information office of Syngenta Group. “And the system also has 20 years of our weather pattern data fed into a machine learning model, so we know exactly what kind of conditions lead to what outcome.”

With that data, farmers can cover their crops before, say, an incoming snap frost that could kill a large portion of their acreage.

In Germany, Jean-Pascal Lutze founded NoMaze to give farmers a deeper understanding of how different crops will perform under climate conditions.

Its software is rolling out this year. “We did field tests in a variety of environments and then created simulations through our computer model to give clients better insight into, say, how much water to use, how to get the maximum yield,” he explains.

Getty Images Soybeans pour through a metal grating as they are unloaded.Getty Images

If the tech works then it could lead to lower food prices

The impact of these technologies might be felt by the consumer, says Heather Darby, an agronomist and soil specialist at the University of Vermont.

Bringing more food to market could translate to lower prices at the register, she says.

“When farmers get help to avoid crop failures, that could lead to a more controlled farm environment and a reliable and secure food system,” says Darby.

Back in Saskatchewan, Darby notes younger farmers are turning to technology while older tillers might resist major change.

He says that farmers need to be open to change.

“After all, when you think about it, some of these farms are multi-million-dollar businesses that are supporting multiple families. We need to embrace technology that works for us.”

“I heard someone say once: ‘If you treat farming as a business, it’s a great way of life, but if you treat your farming as a way of life, it’s a horrible business.'”



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Water companies to face regular MOT-style checks in industry shake-up

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Water companies to face regular MOT-style checks in industry shake-up


Simon Jack,Business editorand

Jonah Fisher,Climate correspondent

Getty Images A young woman's hands cup water as it runs from a tap into a deep black sink.Getty Images

Inspections without notice, regular MOT-style checks and compulsory water efficiency labels on appliances are among the key measures in the government’s overhaul of the water industry.

The government is describing the measures as as the biggest overhaul of the water industry in England and Wales since privatisation.

Environment Secretary Emma Reynolds said there will be “nowhere to hide” for poor performing water companies.

The proposed changes come after widespread public anger at increasing numbers of pollution incidents, leaks and water outages that have affected thousands of customers across England and Wales in recent years.

Reynolds told the BBC: “We’ve had a system whereby water companies are marking their own homework.”

“This has been a whole system failure,” she said. “A failure of regulation, a failure of regulators, of the water companies themselves.”

The Water white paper promises to set up company-specific teams to monitor, supervise and support individual firms and their particular issues rather than rely on a “desk based, one size fits all” approach.

Smart meters and mandatory water efficiency labels on appliances including dishwashers and washing machines will also help households monitor their usage and costs, the government said.

It is also creating a chief engineer role at the regulator that will be set up to replace Ofwat.

Government officials have told the BBC that the establishment of a new regulator may take a year or more and water companies say it will take time for the benefits of new investments to be felt.

The government’s reforms come after a review by Sir John Cunliffe, who issued 88 recommendations to improve the industry.

However, he was asked not to consider whether to nationalise the sector, which was privatised in the late 1980s.

Campaigners said the proposed reforms did not go far enough.

River Action chief executive James Wallace said the measures showed the government “recognises the scale of the freshwater emergency, but lacks the urgency and bold reform to tackle it”.

The new regulator must be “truly independent” and properly funded, he warned, and said major gaps remain.

“None of these reforms will make a meaningful difference unless the failed privatised model is confronted head on. Pollution for profit is the root cause of this crisis,” Wallace said.

Surfers Against Sewage chief executive Giles Bristow said the government’s proposed changes were “frankly insulting” and fall short of much needed structural reform.

“The truth is glaringly obvious to everyone except this government. As long as the industry is structured to prioritise profit, the public will keep paying the price through soaring bills and polluted water,” he said.

Sir Dieter Helm, professor of economic policy at Oxford University, said the government had not wanted to explore that because its self-imposed spending rules have already been stretched to the limits.

“In addition to that, I think there’s a very sensible view around government that the government probably isn’t competent and capable to run these businesses,” he said.

“The government should think really quite carefully about this, because if they’re supervising the companies, and something goes wrong, Whose fault is it?”

Problems in the beleaguered sector have been thrown into focus recently after tens of thousands of South East Water customers were cut off for several days both before and after Christmas.

Mike Keil, chief executive of the Consumer Council for Water (CCW), said the “miserable disruption” underlined the importance of “meaningful change” in water regulation.

A new, powerful ombudsman service would also be welcome, Keil said, given CCW has had a 50% increase in customers asking for help with complaints relating to their water provider.

“One of our key asks of the Independent Water Commission was to make our existing voluntary ombudsman service mandatory, as this is vital to giving customers robust protection,” he said.

‘Proof in the river’

A man in a grey sweatshirt and khaki trousers kneels on a green riverbank next to a tree. He is using equipment from a yellow box to test the water.

Peter Devery testing the water of the River Pang

The River Pang in Berkshire is regarded by some as one of the inspirations for Kenneth Grahame’s Wind in the Willows classics. It’s environmental status has deteriorated from “good” in 2015 to “poor” now – with campaigners blaming regular sewage discharges.

On the banks of the Pang, Pete Devery from the Angling Trust told the BBC he was sceptical of the government’s plans.

“I won’t hold my breath” he said.

“The proof will be in the river. Do the rivers across the country improve? That’s the end result. Doesn’t matter what you call that regulator. It doesn’t matter how many regulators there are. If the difference isn’t made in the rivers, they will have failed.”

In 2024, water companies released raw sewage into England’s rivers and seas for a record 3.61 million hours, a slight increase on 2023.

Aging infrastructure, wetter winters and drier springs and farming runoff into rivers and lakes have all contributed to poor water service and quality.

Ofwat, is currently the water industry’s economic regulator for both England and Wales. In October 2025 the Welsh government said that when Ofwat is abolished it plans to form its own stand-alone economic regulator to replace it.

In 2025, water supply interruptions across England and Wales rose by 8% and pollution incidents by 27%, while customer satisfaction fell by 9%.

Average water bills rose by 26%, or £123 a year, from last April after years of below-inflation increases that some have blamed, along with high executive pay and shareholder dividends, on under-investment in the sector.

The sharp rise in bills is meant to address that under-investment by funding spending of £104 billion over the next five years – more than 40% of which is earmarked for new infrastructure.



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