Nationwide, asking rents rose 0.9% year over year in July to $1,645. This marks the fifth-straight month of increases after 11 months of decreases. Rents are still hovering near their $1,700 record high set two years ago in August 2022. Asking rents rose the fastest in more affordable metros, with Virginia Beach (+15.2%) and Baltimore (+11.3%) among the largest risers. Washington, D.C. (+12.2%) is relatively expensive, but has a lot of demand at lower price points, pushing up its average rate.
Rents are still falling the most in popular pandemic hotspots, with nearly all in the Sun Belt. Austin, (-17.6%), San Diego (-13.3%), and Jacksonville (-13.0%) all posted huge declines. Many Florida metros are again on the list of biggest decreases, with Tampa (-5.8%) and Orlando (-4.1%) dropping significantly.
Rents are slowly rising nationwide, largely because tough homebuying conditions have kept many people in the rental market, increasing demand. This is especially true among young renters, who would sacrifice a lot to start the process of homeownership. A steady drop in mortgage rates has helped bring some renters back into the housing market, but house prices remain stubbornly high.
Asking rents have actually held relatively steady since the 2022 record. This is because persistent renter demand has largely filled the historic number of new apartments hitting the market, many of which were started during the pandemic. Rents are generally rising the most in affordable metros that haven’t built enough new apartments, causing demand to outpace supply.
Rents may not remain stable for too long, though. An abundance of new apartments are becoming available, but new construction is slowing down, which will eventually cause demand to outpace supply. We’re seeing the beginnings of this trend play out in some metros now.
Many Sun Belt metros saw a surge of new apartment construction during the pandemic housing boom to meet the huge demand. Austin, Jacksonville, and San Diego have all built large amounts of apartments, with construction spiking following the pandemic. However, as migration patterns change and newly-completed buildings hit the market, some property owners are having to compete for tenants.
Austin is seeing among the most pronounced trends. This could be because Austin issued more multifamily building permits from 2021-2023 than anywhere else in the country, and also built more than anywhere else. Now, apartment supply far outweighs demand. Austin has led the nation in year-over-year rent decreases for the past three months, and rents have dropped $317 in the past year.
Another reason rents are falling in the Sun Belt might be because they rose too quickly during the pandemic, causing some residents to be priced out. This has the effect of lowering demand and prices.
Pittsburgh has seen tremendous rent increases since the pandemic, but saw some relief in August, which may indicate a longer-term trend.
Expensive coastal metros like San Diego and San Francisco are seeing drops because demand is low, with pockets of popularity. Rents are still unaffordable for a majority of residents, though.
U.S. metro area | Year-over-year change in median asking rent | Median asking rent |
Austin, TX | -17.60% | $1,482 |
San Diego, CA | -13.30% | $2,695 |
Jacksonville, FL | -13.00% | $1,478 |
San Francisco, CA | -7.80% | $2,668 |
Tampa, FL | -5.80% | $1,750 |
Phoenix, AZ | -5.10% | $1,518 |
Pittsburgh, PA | -4.70% | $1,420 |
Los Angeles, CA | -4.20% | $2,775 |
Orlando, FL | -4.10% | $1,762 |
Nashville, TN | -4.10% | $1,576 |
Charlotte, NC | -3.80% | $1,513 |
Miami, FL | -3.80% | $2,404 |
Dallas, TX | -3.40% | $1,488 |
Portland, OR | -3.00% | $1,792 |
Seattle, WA | -1.90% | $2,070 |
Philadelphia, PA | -1.10% | $1,876 |
Atlanta, GA | -0.30% | $1,575 |
San Jose, CA | 0.30% | $3,299 |
Denver, CO | 0.30% | $1,820 |
New York, NY | 0.40% | $2,962 |
Detroit, MI | 1.70% | $1,399 |
Sacramento, CA | 1.70% | $2,050 |
Riverside, CA | 2.40% | $2,323 |
Las Vegas, NV | 3.40% | $1,499 |
Indianapolis, IN | 3.50% | $1,412 |
Boston, MA | 4.20% | $2,804 |
Minneapolis, MN | 8.80% | $1,650 |
Houston, TX | 9.20% | $1,310 |
Cincinnati, OH | 9.40% | $1,345 |
Chicago, IL | 10.80% | $1,779 |
Baltimore, MD | 11.30% | $1,640 |
Washington, D.C. | 12.20% | $2,100 |
Virginia Beach, VA | 15.20% | $1,635 |
According to a Redfin analysis. Asking rent figures in this report cover newly listed units in buildings with five or more units. The median is calculated based on a rolling three-month period. For example, the median asking rent for August 2024 covers rentals that were listed on Rent. and Redfin during the three months ending August 31, 2024.
Metro-level data in this report covers 33 of the 50 most populous U.S. core-based statistical areas (CBSAs). National figures are based on data for the entire U.S.
Asking rents reflect the current costs of new leases. 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 available for rent.