The median nationwide asking rent fell 0.7% year-over-year to $1,595 last month, according to data from Redfin (NASDAQ: RDFN). On a month-over-month measurement, rents were down by 1.1%.
The median rent is now 6.2% lower than when it hit an all-time high of $1,700 in August 2022. Last month’s level marked the lowest level for asking rents since March 2022, and 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. This also marked the first time the median PPSF has been below $1.80 since November 2021.
Within the 44 major metros tracked by Redfin, Sun Belt markets saw the most significant declines in median rents, led by Austin (-12.4%), Tampa (-11.3%), Raleigh (-8.4%), Jacksonville (-7.5%) and Nashville (-7%).
Redfin also noted that nationwide 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.”
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