US Asking Rents Decline in December

On Thursday, Redfin reported that the median US asking rent fell 0.3% year-over-year to $1,594 in December—the lowest level since March 2022.

The median asking rent was down 0.1% from November, and down 6.2% from its August 2022 record high of $1,700. The median asking rent per square foot dropped 1.9% year-over-year to $1.78 and fell 0.1% month-over-month.

Asking rents have been inching lower because of an influx of supply that has left apartment owners with rising vacancies, Redfin said. Apartment completions surged 58.1% year-over-year to the highest level since 1974Q3—the most recent period for which data is available. As a result, the vacancy rate for buildings with five or more units rose to 8%, the highest since early 2021.

Asking rents fell across all bedroom counts for the sixth consecutive month in December. The median asking rent for 0–1-bedroom apartments fell 1% year-over-year to $1,449. For 2-bedroom apartments, it declined 0.6% to $1,665, and for 3+ bedroom apartments, it dropped 2.5% to $1,950.

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

“We’re kicking off 2025 in a renter’s market, with many renters finding that apartments cost less than a year ago—especially in the Sun Belt. While asking rents declined in 2024, they may not have much further to fall this year given that apartment construction has begun to slow.”