Top takeaways from December:
- The median asking rent fell 0.3% year over year in December to $1,594.
- Rents fell 0.1% ($1) on a monthly basis, down from $1,595 in November.
- Providence, Virginia Beach, and Louisville saw the biggest rent increases; Austin, Tampa, and Jacksonville posted the biggest declines.
- 2025 is starting off as a renter’s market: Apartments are coming online at record levels, pushing rents down and helping widen the affordability gap between buying and renting.
National rental trends
The median U.S. asking rent fell 0.7% year over year in December to $1,594 – their lowest level since March 2022. On a monthly basis, rent prices fell by 0.1% ($1). The price per square foot of an apartment, which has hovered around $1.80 for the past year, also dipped slightly.
On average, rents returned to calmer waters in 2024 – a welcome respite for renters. Prices have now held relatively steady for two years following explosive growth in 2021 and 2022. Rents are 6.2% below their record high of $1,700 in August 2022.
What today’s rent prices mean for renters
For renters who are looking to move, now may be a great time. Affordability has improved across the board thanks to a surge of new apartments hitting the market – a 50-year high – and rising wages. More apartments means more supply, which helps offset demand and keeps rent prices from surging. As a result, vacancy rates are at three-year highs. Plus, fewer renters are moving than ever, meaning you may face less competition.
However, trends vary widely depending on where you live.
In some cities, primarily in the Sun Belt, new apartment completions continue at a blistering pace, resulting in more supply and lower rents. This frenzy has prompted some property managers to offer rent concessions (free parking, free month of rent, etc) to attract tenants. Construction has recently slowed, but new apartments will continue hitting the market for the in the near future, which should keep prices lower.
Meanwhile, cities where apartment construction has been more limited are seeing rents rise. Midwest and East Coast metros, like Providence and Louisville, are seeing the biggest gains.
Demand from young renters and a fast-growing renter population are also contributing factors. In metros like San Jose and Los Angeles, for example, more than half of households are renters.
Rental trends by bedroom type
Median rents fell across all bedroom types for the sixth consecutive month in December, highlighting how record levels of construction have improved affordability.
- Rents for 0-1-bedroom apartments fell 1.0% YoY to $1,449
- Rents for 2-bedroom apartments fell 0.6% YoY to $1,665
- Rents for 3+-bedroom apartments fell 2.5% YoY to $1,950
Metros with the biggest rent increases and decreases
Rents keep climbing in the Midwest
Several historically affordable Midwest and East Coast metros continue to see steady rent growth, primarily because they haven’t built as many new apartments. This supply/demand imbalance has helped drive rents higher.
Washington, D.C. is unique because rents aren’t particularly affordable, but they’re still rising because construction hasn’t kept up with strong demand in recent years. Demand for lower-priced rentals is especially high.
Prices drop steeply in the Sun Belt
Similar to past months, rents are falling in Sun Belt metros, which built the most apartments during the pandemic in an effort to meet skyrocketing demand. Now, the region is faced with an abundance of supply, rising vacancy rates, and a drop in new construction. New apartments are also cheaper than they’ve been in over two years.
Austin again topped the list of the largest rent decreases, continuing its steep decline from post-pandemic highs. Rents are 22.6% below their 2023 record of $1,799. As people leave in droves, apartment supply now outweighs demand, leading developers to halt construction and prices to drop.
Year-over-year rent changes by metro
Historical change in rents by metro area
Rent prices have changed significantly since the pandemic, but some metros have seen much larger changes than others.
The median rent in San Francisco, for example, has fallen nearly $800 from a record high of $3,455 in 2022 to $2,697 in December 2024. On the other end of the spectrum, the typical rent in Providence has climbed $600 in the past five years.
Complete metro-level data
Methodology
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 December 2024 covers rentals that were listed on Rent. and Redfin during the three months ending December 31, 2024. Data on Rent. market trends pages may differ from data shown in this report.
Metro-level data in this report covers 44 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.
