US Asking Rents Increase 0.9% Annually in August

On Tuesday, Redfin reported that the median US asking rent rose 0.9% year-over-year in August to $1,645—the biggest annual increase since April 2023. Month-over-month, rents were up 0.1%.

Redfin data show that rents for 0–1-bedroom apartments ticked up 0.1% year-over-year to $1,495, while 2-bedroom apartments remained unchanged at $1,725. Rents for 3+ bedroom apartments fell 1.7% to $2,008. The discrepancy between the overall result (showing a 0.9% gain) and the three different bedroom counts (which either fell, remained the same, or rose by a lower amount) is the result of a statistical phenomenon known as Simpson’s paradox.

While rents rose the most in nearly 18 months, August marked two years from when they hit an all-time high. Lower rents, paired with wages growing 3.8% year-over-year, show that rental affordability has improved.