US Asking Rents Fall in May

On Wednesday, Redfin reported that the median US asking rent fell 1% year-over-year to $1,633, $72 below the August 2022 record high. Month-over-month, the median asking rent rose 0.5%, which Redfin says is typical for this time of year.

Overall, 28 of the 44 major core-based statistical areas (CBSAs) Redfin analyzed saw asking rents decline last month—the highest number since September 2023.

Redfin notes that while asking rents are falling, they’re much less volatile than they were during the pandemic. May marked the 15th-straight month in which asking rents barely decreased or increased, with a year-over-year change of roughly 1% or less during each of those months. Those changes pale in comparison to the wild swings during the pandemic era, when asking rents jumped as much as 17.7% and fell as much as 4.1%.

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

“Apartment construction in America has been hovering near a 50-year high, and even though renter demand is strong, it’s not keeping pace with supply. Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.”