Cleveland recorded the biggest rent increase, while Austin, TX posted the biggest decrease
(NASDAQ: RDFN) — The median U.S. asking rent fell 0.7% year over year in November to $1,595, the lowest level since March 2022. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Rents were down 1.1% on a month-over-month basis.
The median rent is now 6.2% lower than when it hit an all-time high of $1,700 in August 2022.
Highlighting improved rental affordability, November marked the 19th consecutive month where the median asking rent price per square foot (PPSF) fell year over year, down 2.2% to $1.79. That’s the first time the median PPSF has been below $1.80 since November 2021.
While the rental market has remained essentially flat over the past two years, rents have started to tick down slightly in recent months, thanks in part to the record number of new apartments that have been completed this year.
Nationally, apartment completions rose 22.6% year over year to the highest level in over 12 years in the second quarter. As a result, the vacancy rate for buildings with five or more units rose to 8% in the third quarter, the highest level since early 2021.
“Renters in areas where construction has boomed are in a sweet spot right now. Affordability is improving as rents fall and wages rise, and there is increased choice with more and more new apartment buildings opening,” said Redfin Senior Economist Sheharyar Bokhari. “As construction starts to slow, rents will eventually tick back up, but 2025 is shaping up as a renter’s market with potential for the affordability gap between buying and renting to widen.”
Rents for 0-1 bedroom apartments fall to three-year low
With a major boost in supply, November marked the fifth consecutive month that asking rents fell across all bedroom counts.
Median asking rents for 0-1 bedroom apartments fell 1.7% year over year to $1,450 a month, the lowest level since November 2021. Rents for 2 bedroom apartments fell 1.1% (to $1,671) and 3+ bedroom apartments fell 2.3% (to $1,955).
|
Median Asking Rent
|
Median Asking Rent
|
Price Per Square
|
0-1 Bedroom Apartments |
$1,450 |
-1.7% |
-2.5% |
2 Bedroom Apartments |
$1,671 |
-1.1% |
-1.2% |
3+ Bedroom Apartments |
$1,955 |
-2.3% |
-2.4% |
On a price per square foot basis, the decline was more apparent, with 0-1 bedroom apartments falling the most (-2.5%), followed by 3+ bedroom apartments (-2.4%) and 2 bedroom apartments (-1.2%).
Austin rents drop 12%, leading a number of Sun Belt metros seeing significant declines
As has been the case for most of 2024, of the 44 major metros Redfin analyzes, Sun Belt metros saw the most significant declines in median rents, led by Austin, TX (-12.4%), Tampa, FL (-11.3%), Raleigh, NC (-8.4%), Jacksonville, FL (-7.5%) and Nashville, TN (-7%).
Major Metros With Highest Rent Decreases
|
Median Asking Rent
|
Median Asking Rent
|
Price Per Square Foot YoY Change |
Austin, TX |
$1,445 |
-12.4% |
-15.7% |
Tampa, FL |
$1,740 |
-11.3% |
-5.0% |
Raleigh, NC |
$1,424 |
-8.4% |
-7.8% |
Jacksonville, FL |
$1,475 |
-7.5% |
-5.2% |
Nashville, TN |
$1,506 |
-7.0% |
-9.9% |
Denver, CO |
$1,710 |
-5.7% |
-4.7% |
Seattle, WA |
$1,995 |
-4.5% |
-5.4% |
New York, NY |
$2,798 |
-4.2% |
-5.8% |
Orlando, FL |
$1,703 |
-4.1% |
-5.4% |
Pittsburgh, PA |
$1,390 |
-3.5% |
2.9% |
Rents rose the most in Midwest and East Coast metros, where there has been less new construction compared to the Sun Belt.
Cleveland posted the biggest increase (10.6%), followed by Louisville, KY (10.2%), Baltimore (9.4%), Washington D.C. (9.4%) and Providence, RI (9.3%).
Major Metros With Highest Rent Increases
|
Median Asking Rent
|
Median Asking Rent
|
Price Per Square
|
Cleveland, OH |
$1,360 |
10.6% |
9.0% |
Louisville, KY |
$1,236 |
10.2% |
12.2% |
Baltimore, MD |
$1,597 |
9.4% |
5.0% |
Washington, DC |
$2,044 |
9.4% |
10.8% |
Providence, RI |
$2,120 |
9.3% |
7.6% |
Buffalo, NY |
$1,315 |
6.9% |
2.6% |
Detroit, MI |
$1,395 |
6.8% |
7.8% |
Virginia Beach, VA |
$1,600 |
6.8% |
6.6% |
Chicago, IL |
$1,736 |
6.5% |
-0.5% |
Memphis, TN |
$1,222 |
6.3% |
2.8% |
To view the full report, including charts, methodology and additional metro-level insights, please visit: https://www.redfin.com/news/rental-tracker-november-2024
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241211103450/en/
Contacts
Contact Redfin
Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com
