What’s happening with rents nationwide?
Nationwide, rent prices rose 0.4% year over year in July to $1,647. This marks the fourth-straight month of increases after 11 months of decreases. Prices are still hovering near their $1,700 record high set in 2022. Asking rents rose the fastest in more affordable metros, with Virginia Beach (+13.7%) and Baltimore (+12.5%) leading the way.
However, rents again fell the most in popular pandemic hotspots, with all in the Sun Belt. Austin, (-16.9%), Jacksonville (-14.3%), and San Diego (-12.7%) all posted huge declines. Florida metros again filled the list of biggest falls, with Tampa (-5.9%) and Orlando (-4.4%) also dropping significantly.
Why are prices rising nationwide?
Rents are rising nationwide, largely because tough homebuying conditions have kept many people in the rental market, increasing demand. This is especially true among young renters, who would sacrifice a lot to start the process of homeownership. Persistent demand has helped hold prices steady, even as supply catches up in many markets. Prices are rising more quickly in historically affordable metros, many of which didn’t build enough new apartments during the pandemic.
However, prices on the whole have risen slowly because new apartments that were built during the pandemic are continuing to hit the market. New housing starts have also fallen below the 10-year average.
Why are prices falling in the Sun Belt?
Many Sun Belt metros built plenty of apartments during the pandemic housing boom to meet the huge demand. Austin, Jacksonville, and San Diego have all built large amounts of apartments, with construction spiking following the pandemic. However, as housing trends have started to change and newly-completed buildings hit the market, property owners are having to compete for tenants. And in some cases, new apartments are left unfilled, filling up at the slowest pace since 2020.
Austin, which saw the largest price gains in June, is seeing among the most pronounced trends. This could be because Austin issued more multifamily building permits from 2021-2023 than anywhere else in the country, and built more than anywhere else. Jacksonville came in third.
Another reason rent prices are falling may be because they rose too quickly during the pandemic, causing some residents to be priced out. This has the effect of lowering demand and prices. A few expensive coastal metros, like San Diego and San Francisco, are dropping for similar reasons.
Metro-level rental summary: July 2024
| U.S. metro area | Year-over-year change in median asking rent | Median asking rent |
| Austin, TX | -16.9% | $1,458 |
| Jacksonville, FL | -14.3% | $1.465 |
| San Diego, CA | -12.7% | $2,699 |
| San Francisco, CA | -7.6% | $2,693 |
| Tampa, FL | -5.9% | $1,750 |
| Nashville, TN | -4.8% | $1,594 |
| Phoenix, AZ | -4.4% | $1,528 |
| Orlando, FL | -4.4% | $1,772 |
| Los Angeles, CA | -4.4% | $2,772 |
| Portland, OR | -3.8% | $1,799 |
| Charlotte, NC | -3.6% | $1,521 |
| Seattle, WA | -3.5% | $2,075 |
| Pittsburgh, PA | -3.5% | $1,465 |
| Miami, FL | -3.2% | $2,430 |
| Dallas, TX | -2.2% | $1,506 |
| Atlanta, GA | -0.9% | $1,573 |
| Denver, CO | -0.3% | $1,827 |
| Philadelphia, PA | +0.6% | $1,925 |
| San Jose, CA | +0.8% | $3,302 |
| Sacramento, CA | +1.6% | $2,047 |
| Detroit, MI | +1.6% | $1,392 |
| Riverside, CA | +1.8% | $2,315 |
| New York, NY | +3.2% | $3,047 |
| Indianapolis, IN | +4.5% | $1,415 |
| Las Vegas, NV | +4.8% | $1,520 |
| Boston, MA | +5.1% | $2,833 |
| Minneapolis, MN | +7.4% | $1,658 |
| Houston, TX | +9.6% | $1,356 |
| Cincinnati, OH | +9.9% | $1,356 |
| Chicago, IL | +10.3% | $1,764 |
| Washington, D.C. | +11.6% | $2,109 |
| Baltimore, MD | +12.5% | $1,665 |
| Virginia Beach, VA | +13.7% | $1,610 |
Methodology
According to a Redfin analysis. Asking rent figures in this report cover newly listed units in buildings with five or more units. The median is calculated based on a rolling three-month period. For example, the median asking rent for July 2024 covers rentals that were listed on Rent. and Redfin during the three months ending July 31, 2024.
Metro-level data in this report covers 33 of the 50 most populous U.S. core-based statistical areas (CBSAs). National figures are based on data for the entire U.S.
Asking rents reflect the current costs of new leases. In other words, the amount shown as the median asking rent is not the median of what all renters are paying, but the median asking price of apartments available for rent.