US Asking Rents in November Fall to Lowest Level Since March 2022

On Wednesday, Redfin reported that according to its latest data, the median US asking rent fell 0.7% year-over-year to $1,595 in November, the lowest level since March 2022. On a month-over-month basis, rents were down 1.1%.

The median rent is now 6.2% lower than when it hit an all-time high of $1,700 in August 2022.

Redfin notes that while the rental market has remained essentially flat over the past two years, rents have started to tick down slightly in recent months, thanks in part to the record number of new apartments that have been completed this year. Nationally, apartment completions rose 22.6% year-over-year in Q2 to the highest level in over 12 years. As a result, the vacancy rate for buildings with five or more units rose to 8% in Q3, the highest level since early 2021.

With a major boost in supply, November marked the fifth consecutive month that asking rents fell across all bedroom counts, Redfin reported. Median asking rents for 0–1-bedroom apartments fell 1.7% year-over-year to $1,450 a month, the lowest level since November 2021. Rents for 2-bedroom apartments fell 1.1% to $1,671, and 3+ bedroom apartments fell 2.3% to $1,955.

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

“Renters in areas where construction has boomed are in a sweet spot right now. Affordability is improving as rents fall and wages rise, and there is increased choice with more and more new apartment buildings opening. As construction starts to slow, rents will eventually tick back up, but 2025 is shaping up as a renter’s market with potential for the affordability gap between buying and renting to widen.”