Although newly built multifamily units across the country continue to attract tenants, a new analysis from Redfin suggests that the overall supply of these apartments is outpacing demand. According to Redfin, 54% of newly built units were rented out within three months, but this absorption rate is the second-lowest in four years, second only to the first quarter of this year, when only 47% of units were leased within three months.

The analysis indicates that while the uptick in absorption is positive for landlords, they may be adjusting rents and offering concessions to attract new tenants.

"With only about half of new apartments renting out within three months, not only do renters have more choices, but they also likely have the ability to negotiate a better deal," said Redfin Senior Economist Sheharyar Bokhari. "There's a huge number of new apartments opening up, and building owners are competing with one another to fill them quickly."