For June, median asking rents have fallen by half of a percent year-over-year to $1,642. That marked the fourth straight month of annual declines, according to a Redfin report. The marketplace attributed the steady decline to greater supply than demand, despite a strong rental market buoyed by challenging home-buying costs.
These fluctuations are consistent with a relatively steady rental market that has persisted over the past year, with annual declines and increases of about 1% or less since March 2024, according to Redfin. Before that, larger swings in asking rent were common throughout the pandemic, with prices increasing by as much as 18% or decreasing by as much as 4%.
Although the median asking rent has fallen from a year ago, current levels are just $63 less than the all-time high of $1,705 recorded in August 2022.
Apartment construction is nearing a 50-year high, which has resulted in a shortage of vacant units. Less than half of the newly built apartments completed at the end of 2024 were occupied within three months, giving tenants negotiating power, said Redfin.
“Renters have the upper hand—at least for now—because there are a near-record number of apartments coming on the market that landlords are scrambling to lease,” said Sheharyar Bokhari, a senior economist at Redfin. “In certain parts of the country, renters may be able to negotiate discounted rent, flexible leases or free parking. But these perks may be short-lived given that apartment construction is expected to slow and rental demand is expected to remain strong.”
The report noted that apartment permitting has returned to pre-pandemic levels.
Asking rents fell in more than half of major core-based statistical areas, led by Minneapolis with a 5.8% decrease, Austin with a 5.7% decrease and Las Vegas with a 4% drop in asking rents.
Austin's are the lowest they have been in more than four years at $1,379, despite strong demand, as the market continues to absorb a large amount of pandemic-driven supply. Redfin noted builders in Austin secured far more permits between 2021 and 2023 than builders in other major metros, which caused vacancy to soar.
Meanwhile, Cincinnati posted an asking rent increase of 6.2%, followed by St. Louis, where rents rose 4.3%, and Pittsburgh, where rents inched up 3.7%. Each of these markets has lower-than-average apartment construction, according to Redfin.
Two-bedroom apartments experienced a 1.5% decrease in the median asking rent to $1,713 in June. Rent for 0-1 bedroom apartments and three-plus units were relatively unchanged year-over-year. The average rent was $1,499 for 0-1 bedroom apartments and $2,014 for 3+ bedroom apartments, according to the report.
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