The median asking rent fell at the end of 2024 to its lowest level since March 2022.
2025 Starts as a Renter’s Market
The median asking rent has fallen to its lowest level since March 2022 to end 2024 down 0.3% year-over-year to $1,594, according to a Redfin report. The decrease is likely due to an influx of supply that has pushed apartment vacancies higher.
The report said asking rents were down 0.1% month-over-month and 6.2% from their August 2022 peak of $1,700. Median asking rent per square foot dropped 1.9% year-over-year and 0.1% month-over-month in December to $1.78.
Meanwhile, apartment completions surged 58.1% during the third quarter to reach the highest level since at least 1974. Consequently, the vacancy rate for buildings with five or more units increased to 8%, the highest level since early 2021.
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“We’re kicking off 2025 in a renter’s market, with many renters finding that apartments cost less than a year ago — especially in the Sun Belt,” said Redfin senior economist Sheharyar Bokhari. “While asking rents declined in 2024, they may not have much further to fall this year given that apartment construction has begun to slow.”
Asking rents fell across apartments with all bedroom counts. Those with three or more bedrooms saw the largest decline, dropping 2.5% to $1,950, while the median asking rent for zero- and one-bedroom apartments fell 1% year-over-year to $1,449 and for two-bedroom apartments fell 0.6% to $1,665.
Of the 44 major US metro areas analyzed by Redfin, Austin logged the largest decline in median asking rent, dropping 16.3% to $1,393 and 22.6% from its August 2023 record high.
Following Austin, the next steepest declines were in Tampa and Jacksonville, Florida, falling 10.4% and 6.7% respectively. Nashville fell 6.3% and New York fell 4.6% to round out the five largest declines in rent.
Redfin said asking rents are falling the most in the Sun Belt because of a combination of new inventory and rents normalizing after rising to unsustainable levels during the pandemic.
Rents rose the most in Providence, Rhode Island (12.6% YoY), followed by Virginia Beach, Virginia (10.9%), Louisville, Kentucky (10%), Baltimore (10%) and Buffalo (9.4%).
Source: GlobeSt.
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