Asking Rents Fall Across All Bedroom Counts for First Time in 4 Years
- The nationwide median asking rent was $1,647 in July, down $53 from the all-time high in 2022.
- Rents for 3+ bedroom apartments fell the fastest, dropping 2.4% year over year.
- Rents fell in Sun Belt metros, especially in Florida and Texas, where new construction levels have been strong since the pandemic.
The median asking rent fell across all bedroom counts in July year over year, the first time that’s occurred since June 2020.
Median asking rents for 0-1 bedroom apartments fell 0.1% (to $1,498 a month), 2 bedroom apartments fell 0.3% (to $1,730) and 3+ bedroom apartments fell 2.4% (to $2,010). All three categories are down at least $50 from all-time highs posted in the last two years.
Prices remained steady for 0-1 bedroom and 2 bedroom apartments due to higher demand in those categories, even with increased supply. The increased supply of 3+ bedroom apartments, however, led to prices falling faster in July due to lower demand for larger, more expensive units which also compete against single-family home rentals.
The overall rental vacancy rate has remained at 6.6% for four consecutive quarters, the highest level since 2021, while the vacancy rate for buildings with 5+ apartments—the subject of this report—was at 7.8% in the second quarter, up from 7.4% a year earlier.
“Rents have recently steadied—or even dropped slightly—because of the sheer number of apartments built over the past two years,” said Redfin Senior Economist Sheharyar Bokhari. “Construction is slowing down and prices will eventually start rising again, but now is still a good time for renters to find a deal, especially families looking for an apartment with at least three bedrooms.”
Nationwide median asking rent rises slightly, but still down $53 from all-time high
The median asking rent for all bedroom counts combined actually rose 0.4% year over year in July to $1,647. This discrepancy between the combined result (showing a gain) and the three different bedroom counts (which all fell) is the result of a statistical phenomenon known as Simpson’s paradox.
The national median asking rent was down 0.2% month over month from June and $53 less than the all-time high of $1,700 recorded in August 2022. Despite the slight dip, affordability is still a serious issue for renter households, which earn roughly $11,000 less than is needed to afford a typical apartment.
“Rents have recently steadied—or even dropped slightly—because of the sheer number of apartments built over the past two years,” said Redfin Senior Economist Sheharyar Bokhari. “Construction is slowing down and prices will eventually start rising again, but now is still a good time for renters to find a deal, especially families looking for an apartment with at least three bedrooms.”
The overall rental vacancy rate has remained at 6.6% for four consecutive quarters, the highest level since 2021, while the vacancy rate for buildings with 5+ apartments—the subject of this report—was at 7.8% in the second quarter, up from 7.4% a year earlier.
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Rents drop across Sun Belt, as East Coast and Midwest cities record big increases
Metro areas in Texas and Florida, two states which have built a high number of new apartments since the pandemic, continue to see large falls in price.
The median asking rent in Austin, TX dropped the most of any metro we analyzed in July, falling 16.9% year over year. Jacksonville, FL, was not far behind, with the median asking rent falling 14.3%.
San Diego (down 12.7%), San Francisco (down 7.6%) and Tampa, FL (down 5.9%) rounded out the five metros with the biggest drops in asking rents.
Metro-level data in this report covers apartment asking rents in 33 major U.S. metropolitan areas. National data represents the entire U.S.
The median asking rent in Virginia Beach, VA rose 13.7% year over year in July, the biggest jump among the metros Redfin analyzed. Baltimore, MD (up 12.5%), Washington, D.C. (up 11.6%), Chicago (up 10.3%) and Cincinnati, OH (up 9.9%) posted the next highest gains.
Note: Redfin is reporting bedroom-specific data for the first time this month to provide more granular insights into the rental market. Rental data will now be shared publicly each month.
Metro-Level Summary: July 2024
| U.S. metro area | Median asking rent | Month-over-month change in median asking rent | Year-over-year change in median asking rent |
| Atlanta, GA | $1,573 | -0.1% | -0.9% |
| Austin, TX | $1,458 | -1.2% | -16.9% |
| Baltimore, MD | $1,665 | 0.9% | 12.5% |
| Boston, MA | $2,833 | -1.0% | 5.1% |
| Charlotte, NC | $1,521 | 0.3% | -3.6% |
| Chicago, IL | $1,764 | -0.6% | 10.3% |
| Cincinnati, OH | $1,356 | -1.4% | 9.9% |
| Dallas, TX | $1,506 | -0.6% | -2.2% |
| Denver, CO | $1,827 | -0.2% | -0.3% |
| Detroit, MI | $1,392 | -0.9% | 1.6% |
| Houston, TX | $1,299 | 1.0% | 9.6% |
| Indianapolis, IN | $1,415 | -1.9% | 4.5% |
| Jacksonville, FL | $1,465 | -1.5% | -14.3% |
| Las Vegas, NV | $1,520 | -1.0% | 4.8% |
| Los Angeles, CA | $2,772 | -0.6% | -4.4% |
| Miami, FL | $2,430 | -1.3% | -3.2% |
| Minneapolis, MN | $1,648 | -0.3% | 7.4% |
| Nashville, TN | $1,594 | -0.3% | -4.8% |
| New York, NY | $3,047 | 0.7% | 3.2% |
| Orlando, FL | $1,772 | -0.2% | -4.4% |
| Philadelphia, PA | $1,925 | -1.2% | 0.6% |
| Phoenix, AZ | $1,528 | -0.2% | -4.4% |
| Pittsburgh, PA | $1,465 | -1.6% | -3.5% |
| Portland, OR | $1,799 | -1.4% | -3.8% |
| Riverside, CA | $2,315 | -0.1% | 1.8% |
| Sacramento, CA | $2,047 | 0.1% | 1.6% |
| San Diego, CA | $2,699 | -0.8% | -12.7% |
| San Francisco, CA | $2,693 | -1.2% | -7.6% |
| San Jose, CA | $3,302 | 0.6% | 0.8% |
| Seattle, WA | $2,075 | -0.3% | -3.5% |
| Tampa, FL | $1,750 | 0.2% | -5.9% |
| Virginia Beach, VA | $1,610 | -0.1% | 13.7% |
| Washington, DC | $2,109 | 0.7% | 11.6% |
| National—U.S.A. | $1,647 | -0.2% | 0.4% |
Methodology
Median asking rent figures in this report cover newly listed units in apartment buildings with five or more units. The median is calculated based on a rolling three-month period, i.e., the median asking rent for July 2024 covers rentals that were listed on Rent.com and Redfin.com during the three months ending July 31, 2024.
Metro-level data in this report covers 33 of the 50 most populous U.S. core-based statistical areas (CBSAs)—those for which Rent. and Redfin have sufficient rental data. The national figures are based on data for the entire U.S.
Asking rents reflect the current costs of new leases during each time period. In other words, the amount shown as the median asking rent is not the median of what all renters are paying, but the median asking price of apartments that were available for new renters during the report period.
Source: Redfin.com
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