Virginia Beach, VA recorded the biggest rent increase, while Raleigh, NC posted the biggest decrease
The median U.S. asking rent barely moved in October, nudging up 0.2% year over year to $1,619. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Rents were down 0.6% on a month-over-month basis.
Rents have remained largely flat over the past two years, after a surge in demand during the pandemic led to a construction boom across a number of Sun Belt states.
Depending on where you live in the country, however, you could be seeing very different rental markets—with some metros seeing asking rents rising by double digits, while others are seeing similar-sized falls.
“New apartments are being completed at the fastest pace on record and that’s leading to rents falling in places like Tampa or Jacksonville, where supply now outweighs demand,” said Redfin Senior Economist Sheharyar Bokhari. “Construction is slowing, but we will continue to see a wave of new apartment buildings coming onto the market in coming months, which is good news for renters looking for an affordable rental in 2025.”
East Coast and Midwest metros post highest rent increase, as rents in Sun Belt metros fall
Rents are rising the most in the Midwest and on the East Coast, where there has been less new construction in comparison to the Sun Belt. Virginia Beach, VA, posted the biggest rent increase of the 50 most-populous metros we analyzed in October, up 11.7% year over year to $1,647.
Major Metros With Highest Rent Increases
|
Median Asking Rent |
Median Asking |
Price Per Square |
|
|
Virginia Beach, VA |
$1,647 |
11.7% |
9.8% |
|
Washington, DC |
$2,060 |
11.1% |
11.4% |
|
Cleveland, OH |
$1,350 |
9.8% |
9.0% |
|
Chicago, IL |
$1,768 |
8.8% |
3.0% |
|
Baltimore, MD |
$1,595 |
8.5% |
5.2% |
|
Providence, RI |
$2,100 |
7.7% |
9.3% |
|
Memphis, TN |
$1,249 |
6.4% |
5.4% |
|
Minneapolis, MN |
$1,625 |
6.2% |
8.4% |
|
Columbus, OH |
$1,450 |
6.1% |
9.5% |
|
Detroit, MI |
$1,405 |
6.0% |
7.2% |
Rents in Washington, D.C. rose 11.1%, while Cleveland, OH (+9.8%), Chicago (+8.8%) and Baltimore (+8.5%) rounded out the five major metros where rents rose the most.
Raleigh, NC saw the biggest rent decline, down 8.8% year over year to $1,450. It was followed by Tampa, FL (-8.5%), Jacksonville, FL (-8.4%), Austin, TX (-8.2%) and San Diego (-6.4%).
Major Metros With Highest Rent Decreases
|
Median Asking Rent |
YoY Change |
Price Per Square |
|
|
Raleigh, NC |
$1,450 |
-8.8% |
-10.2% |
|
Tampa, FL |
$1,736 |
-8.5% |
-5.4% |
|
Jacksonville, FL |
$1,495 |
-8.4% |
-9.3% |
|
Austin, TX |
$1,515 |
-8.2% |
-10.4% |
|
San Diego, CA |
$2,770 |
-6.4% |
-4.1% |
|
Nashville, TN |
$1,526 |
-5.9% |
-12.0% |
|
San Francisco, CA |
$2,685 |
-5.8% |
-6.1% |
|
Pittsburgh, PA |
$1,394 |
-4.8% |
-0.7% |
|
Orlando, FL |
$1,720 |
-4.4% |
-6.1% |
|
Phoenix, AZ |
$1,497 |
-4.3% |
-3.7% |
Rents fall across all bedroom counts for third time in four months
Despite the slight overall rise last month, asking rents fell across all bedroom counts for the third time in four months. The minor discrepancy between the overall median rent (showing a small 0.2% gain) and the three different bedroom counts (which all fell) is the result of a statistical phenomenon known as Simpson’s paradox.
Median asking rents for 0-1 bedroom apartments fell 0.4% year over year (to $1,475 a month), 2 bedroom apartments fell 0.1% (to $1,699) and 3+ bedroom apartments fell 1.5% (to $1,985).
|
Median Asking Rent |
YoY Change |
|
|
0-1 Bedroom Apartments |
$1,475 |
-0.4% |
|
2 Bedroom Apartments |
$1,699 |
-0.1% |
|
3+ Bedroom Apartments |
$1,985 |
-1.5% |
Asking rent price per square foot falls for 18th consecutive month
Highlighting the improved affordability for renters overall, the asking price per square foot for rental apartments fell for the 18th consecutive month in October, dropping 1.1% from a year ago.
One reason the price per square foot is falling is the overall increase in supply stemming from the recent construction boom. Rents for newly constructed apartments fell 6.2% year over year in the second quarter, the most recent data available. In areas where new construction has boomed, including Florida and Texas, building owners are now competing with each other to fill their units—leading to lower rents and concessions being offered.
To view the full report, including charts and additional metro-level insights, please visit: https://www.redfin.com/news/rental-tracker-october-2024
