SEATTLE, WA — The median asking rent in the U.S. dropped 0.7% in November compared to the same month last year, hitting $1,595—the lowest level since March 2022. On a month-over-month basis, rents declined 1.1%, according to a new report from Redfin.
This marks a 6.2% decrease from the all-time high of $1,700 seen in August 2022. November also represented the 19th consecutive month of year-over-year declines in median rent price per square foot, which fell 2.2% to $1.79, the lowest it has been since November 2021.
A surge in new apartment construction has contributed to these lower rental costs. Apartment completions nationwide rose 22.6% year-over-year in the second quarter, reaching their highest level in over a decade. The vacancy rate for apartment buildings with five or more units increased to 8% in the third quarter, the highest since early 2021.
“Renters in areas where construction has boomed are in a sweet spot right now,” said Sheharyar Bokhari, Senior Economist at Redfin. “Affordability is improving as rents fall and wages rise, and there is increased choice with more and more new apartment buildings opening. 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.”
Regional Trends
Sun Belt metros, which have seen substantial apartment construction, reported the largest rent declines. Austin, TX, led with a 12.4% drop in median asking rents, followed by Tampa, FL (-11.3%), Raleigh, NC (-8.4%), Jacksonville, FL (-7.5%), and Nashville, TN (-7%).
Conversely, rents increased the most in Midwest and East Coast cities, where new construction has been less prevalent. Cleveland saw the highest rent growth at 10.6%, with Louisville, KY (10.2%), Baltimore (9.4%), Washington D.C. (9.4%), and Providence, RI (9.3%) rounding out the top five.
Apartment Size and Affordability
Declines in rent were observed across all apartment sizes, with smaller apartments recording the largest reductions. Median asking rents for studio and one-bedroom units fell 1.7% to $1,450, reaching a three-year low. Rents for two-bedroom apartments dropped 1.1% to $1,671, while rents for units with three or more bedrooms decreased by 2.3% to $1,955.
On a per-square-foot basis, the decline was most pronounced in smaller units, with studios and one-bedrooms seeing a 2.5% drop.
As supply continues to outpace demand in some markets, renters across the country—particularly in high-growth areas—are benefiting from lower costs and increased availability. However, as construction activity slows, experts suggest these trends may not last indefinitely. For now, renters can enjoy the rare combination of lower prices and greater housing options.
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