US Asking Rent Declines 2.1% Year-Over-Year in November

Redfin reported on Wednesday (12-13-23) that the median US asking rent declined 0.6% month-over-month and 2.1% year-over-year in November to $1,967. That is the largest annual decline since February 2020.

According to Redfin, the number of completed apartments in the US rose 7% year-over-year in Q3 to a seasonally adjusted annual rate of 1.2 million, one of the highest levels of the last three decades. The number of apartment buildings on which construction has started also stands at one of the highest levels of the past three decades but has begun to decline: -26.2% year-over-year in Q3 to a seasonally adjusted annual rate of 1.2 million.

As a result, apartment vacancies are climbing because renters have an increasing number of buildings to choose from. In Q3, the rental vacancy rate rose to 6.6%—the highest level since 2021Q1.

Commenting on the report, Redfin Chief Economist Daryl Fairweather said:

“Renters are finally catching a break. Better deals are easier to come by because landlords are doling out concessions and rents have started falling in a meaningful way. Rising supply also means renters have more good options to choose from. With homeownership so expensive, renting has started to lose its stigma. Still, we may see more renters jump into the homebuying market next year as home-sale prices and mortgage rates tick down.”