US Asking Rents Little Changed Year-Over-Year but Down 2% Month-Over-Month in September

Redfin reported (10-5-23) that the US median asking rent rose 0.4% year-over-year in September to $2,011. This marks the sixth consecutive month in which rents were little changed from a year earlier. Previously, rent growth had been slowing rapidly for roughly a year, coming back after a surge in prices during the pandemic.

On a month-over-month basis, the median asking rent fell 2%.

On a year-over-year and regional basis, the median asking rent in the Midwest increased 5% to a record high $1,436. Likewise, there was also an increase in the Northeast, where the median rent climbed to $2,482, a 3.1% increase. Asking rents declined in the West, dropping 1.6% to $2,413. In the South, asking rents declined 0.3% to $1,653.

Adding additional background and her analysis to the report, Redfin Economic Research Lead Chen Zhao said:

“Rents have flattened because a boom in apartment building in recent years has flooded the market with supply, but they haven’t yet posted a substantial decline because there’s still demand for rentals—especially as high mortgage rates keep many would-be homebuyers and sellers on the sidelines. There are still a lot of apartments under construction that will continue to hit the market, which should keep rents from increasing much in the near-to-medium term. But construction has started to slow, which should eventually help bolster rent prices.”