In December, the median asking rent per square foot dipped 0.1% month over month and 1.9% year-over-year (YoY) to $1.78—according to a new Redfin report.
Due to an increase in vacancies caused by an infusion of supply, asking rents have been gradually declining. In the third quarter, when data is available, apartment completions increased 58.1% year-over-year (YoY) to reach their highest level since 1974. Consequently, buildings with five or more units experienced the highest vacancy rate since early 2021, rising to 8%.
In December, the median asking rent per square foot dipped 0.1% month-over-month (MoM) and 1.9% YoY to $1.78.
Due to an increase in vacancies caused by an infusion of supply, asking rents have been gradually declining. In the third quarter, when data is available, apartment completions increased 58.1% YoY to reach their highest level since 1974. Consequently, buildings with five or more units experienced the highest vacancy rate since early 2021, rising to 8%.
| Median asking rent | YoY change in median asking rent | Median asking rent per square foot | YoY change in median asking rent per square foot | |
| 0-1 bedroom apartments | $1,449 | -1% | $2.05 | -2.3% |
| 2 bedroom apartments | $1,665 | -0.6% | $1.60 | -1% |
| 3+ bedroom apartments | $1,950 | -2.5% | $1.49 | -2.2% |
“We’re kicking off 2025 in a renter’s market, with many renters finding that apartments cost less than a year ago—especially in the Sun Belt,” said Redfin Senior Economist Sheharyar Bokhari. “While asking rents declined in 2024, they may not have much further to fall this year given that apartment construction has begun to slow.”
All apartment types saw a decrease in asking rentals, although the highest drop was seen by those with three or more bedrooms.
In December, asking rents decreased for the sixth consecutive month across all bedroom counts.
For apartments with 0–1 bedrooms, the median asking rent decreased by 1% annually to $1,449. It fell 0.6% to $1,665 for apartments with two bedrooms and 2.5% to $1,950 for flats with three or more bedrooms.
The biggest reduction among the 44 major U.S. metropolitan regions Redfin examined was in Austin, Texas, where the median asking rent fell 16.3% year over year in December. Last month, Austin’s median asking rent was $1,393, which was 22.6% less than its record high from August 2023.
The two metro areas in Florida with the next-sharpest drops were Jacksonville (-6.7%) and Tampa (-10.4%). New York (-4.6%) and Nashville (-6.3%) followed.
To read the full report, including more data, charts and methodology, click here.
