Asking Rents for Newly Completed US Apartments Move Higher in Q3

On Monday, Redfin reported that according to its latest data, asking rents for newly constructed apartments rose 1.5% in Q3—the biggest year-over-year increase in 18 months—to a median $1,802.

The rise in rents came after two consecutive quarters where rents for new apartments fell by more than 7%. The median rent for newly constructed apartments bounced back above $1,800 in Q3 for the first time since late 2023—after falling all the way to $1,714 in Q2, the lowest level since mid-2021.

The regional breakdown is as follows:

• Asking rents for new apartments actually fell year-over-year in the Northeast, declining 3.6%, after the number of newly finished apartments rose 13% year-over-year in Q2 to the highest level since 2022Q4.
• The West saw the biggest uptick in median rents, up 4.4%, despite seeing a 34.1% jump in new apartments being completed.
• Midwest asking rents ticked up 3.3% after a 47% increase in new apartment completions.
• The South, which saw almost as many new apartment completions as the other three regions combined, posted a minor increase of just 1.1%.

Commenting on the report, Redfin Senior Economist Sheharyar Bokhari said:

“We would usually predict that rents will stay flat, or even potentially fall, when there are so many new apartment buildings opening up. What’s interesting in the third quarter is that rents are rising by more than the national average in the West and Midwest, even after the number of new apartments spiked between 30–50%. This is likely due to more new apartments being built in more expensive metros in each region, pushing the overall levels up.”