The lowest asking rent has reached its most affordable point since March 2022, with median rents dropping to $1,595 in November 2024. This represents a 0.7% year-over-year decline and a 1.1% decrease from the previous month. As reported by Redfin, renters are benefiting from a combination of declining costs, increased supply, and steady wage growth, creating a favorable market for those seeking new leases.
Lowest Asking Rent Since 2022
The State of Rental Affordability
For the fifth consecutive month, rents have declined across all apartment sizes, signaling a significant shift in the rental landscape. The median rent for 0-1 bedroom apartments fell 1.7% year-over-year to $1,450, marking the lowest level since November 2021. Meanwhile, 2-bedroom and 3+ bedroom units also experienced declines, dropping by 1.1% and 2.3%, respectively. This sustained decrease is attributed to an unprecedented surge in apartment construction, which has improved availability and choice for renters.
Redfin’s data highlights that the price per square foot (PPSF) of rental apartments dropped 2.2% year-over-year, marking the 19th consecutive month of decline. The November PPSF of $1.79 is the first time this figure has fallen below $1.80 since late 2021.
Regional Variations in Rental Trends
Rental markets across the U.S. have exhibited varied performance. Sun Belt cities, including Austin (-12.4%), Tampa (-11.3%), and Raleigh (-8.4%), led the declines in lowest asking rent, reflecting regional oversupply and softened demand.
Conversely, Midwest and East Coast cities such as Cleveland (+10.6%) and Washington, D.C. (+9.4%) saw notable rent increases due to slower construction activity and consistent demand.
Why Rents Are Falling
The record number of new apartment completions in 2024, up 22.6% year-over-year, has created a competitive market. In the third quarter, the vacancy rate for apartment buildings with five or more units rose to 8%, the highest since early 2021. This oversupply has provided renters with increased bargaining power and more affordable options.
Sheharyar Bokhari, Redfin’s Senior Economist, noted, “Renters in areas where construction has boomed are in a sweet spot right now. Affordability is improving as rents fall and wages rise. However, as construction slows, rents may rise again, but 2025 is shaping up to be a renter’s market.”
A Renter’s Market Emerges
The lowest asking rent in November 2024 signals a turning point in the rental market, with affordability reaching levels unseen since March 2022. While rents may stabilize as construction slows, current trends favor renters seeking better deals and more choices. As highlighted by Redfin’s comprehensive analysis, the continued focus on affordability and supply will be key in shaping rental markets in the coming year.
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