In Denver, apparently (HT:MY) rising supply is leading to a drop in rents, while home prices continue to rise. This is treated as a mystery, or as a problem of affordability.
But, this is basically what needs to happen across the country. Affordability is not what is keeping households out of ownership right now. In any path forward to normalization, rents will decline and prices will rise. That is even the case if interest rates rise. In fact, in normalization of the housing market, rates will rise as prices rise and rents moderate. The question is whether rates are pushed up arbitrarily by monetary authorities or naturally by markets.
I take this as a good sign, even though national indicators still seem mixed.