US Median Asking Rent Declines in All Bedroom Counts in July—A First Since June 2020

On Tuesday, Redfin reported that the median asking rent fell year-over-year across all bedroom counts in July—the first time that’s occurred since June 2020.

Redfin data show that the median asking rent for studio and 1-bedroom apartments fell 0.1% to $1,498 a month; two-bedroom apartments fell 0.3% to $1,730; and 3+ bedroom apartments fell 2.4% to $2,010. All three categories are down at least $50 from all-time highs posted in the last two years.

Prices remained steady for studios and 1- and 2-bedroom apartments due to higher demand in those categories, even with increased supply coming onto the market. The increased supply of 3+ bedroom apartments, however, led to prices falling faster in July due to lower demand for larger, more expensive units which also compete against single-family home rentals.

The overall rental vacancy rate has remained at 6.6% for four consecutive quarters, the highest level since 2021, while the vacancy rate for buildings with 5+ apartments was at 7.8% in the second quarter, up from 7.4% a year earlier.

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

“Rents have recently steadied—or even dropped slightly—because of the sheer number of apartments built over the past two years. Construction is slowing down and prices will eventually start rising again, but now is still a good time for renters to find a deal, especially families looking for an apartment with at least three bedrooms.”