According to a recent survey from Redfin, the median asking rent in the U.S. dropped 1% year-over-year (YoY) in May to $1,633, which is $72 less than the record high set in August 2022. The median asking rent in the U.S. increased by 0.5% month-over-month (MoM) in May, which is normal for this time of year. The study found that overall asking rents decreased last month in 28 of the 44 main U.S. core-based statistical areas (CBSAs) that Redfin examined, the most since September 2023.
The pandemic moving frenzy caused a spike in multifamily building, which is still at historically high levels even though it has begun to slow down. Asking rents can increase as it slows down further.
In Q1, the most recent period for which data is available, the rental vacancy rate for buildings with five or more units was 8.2%. That is the highest level since early 2021, tied with the previous quarter. One of the lowest percentages ever recorded is that less than half of newly-constructed apartments are rented out within three months.
“Apartment construction in America has been hovering near a 50-year high, and even though renter demand is strong, it’s not keeping pace with supply,” said Sheharyar Bokhari, Senior Economist at Redfin. “Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.”
Asking rents are decreasing, but they are not as erratic as they were during the pandemic. May was the fifteenth consecutive month where asking rents either barely changed or grew, with each month seeing a rise of less than 1% YoY. The dramatic swings during the pandemic era, when asking rents increased by 17.7% and decreased by 4.1%, are far worse than those changes.
The Top 10 Metros with the Biggest YoY Drop in Median Asking Rent:
| Core-based statistical area (CBSA) | Median asking rent | MoM change in median asking rent | YoY change in median asking rent |
|---|---|---|---|
| Austin-Round Rock-Georgetown, Texas | $1,385 | -1.0% | -8.8% |
| Minneapolis-St. Paul-Bloomington, MN-WI | $1,551 | 0.7% | -6.3% |
| Columbus, Ohio | $1,427 | 0.5% | -3.5% |
| Nashville-Davidson–Murfreesboro–Franklin, TN | $1,540 | -0.4% | -3.4% |
| Portland-Vancouver-Hillsboro, OR-WA | $1,799 | 0.2% | -3.4% |
| Raleigh-Cary, NC | $1,474 | 1.7% | -3.4% |
| Las Vegas-Henderson-Paradise, NV | $1,499 | -0.1% | -3.1% |
| New York-Newark-Jersey City, NY-NJ-PA | $2,887 | 1.5% | -3.1% |
| Phoenix-Mesa-Chandler, AZ | $1,493 | 0.5% | -3.0% |
| Denver-Aurora-Lakewood, CO | $1,780 | 1.8% | -2.9% |
New Construction Jumps as Rents See Significant Drop in ATX
In May, the median asking rent in Austin, Texas, fell 8.8% YoY to $1,385, the lowest since February 2021 and $414 less than the record high set in August 2023. Out of the 44 major CBSAs that Redfin examined, that represents the most percentage drop. The top metros that followed were:
- Minneapolis (-6.3%)
- Columbus, Ohio (-3.5%)
- Nashville (-3.4%)
- Portland, OR (-3.4%)
From April 2024 to March 2025, Austin issued permits for 64.5 multifamily units per 10,000 residents, more than any other metro area Redfin examined in a different analysis. In addition, Columbus, Ohio, and Nashville, TN, were among the top 10 cities for multifamily permits. The 3.5% asking-rent cut in Columbus was the most for that metro area in data going back to 2019.
“I’m not seeing many first-time homebuyers right now,” said Nicole Stewart, a Redfin Premier real estate agent in Boise, ID. “Rental rates here are still more manageable than saving up for a down payment and mortgage. People are finding rentals that are nicer than the house they could afford at the same monthly cost. That’s in part because a lot of home sellers are overpricing their properties as they struggle to adjust to the changing housing market.”
Many Americans are also choosing to continue renting because rents are declining and the cost of buying a home is increasing in many American cities. But hey, what’s a consumer to do? We have to have a place to live!
Additionally—and unfortunately—in order to afford monthly housing payments, the average American homeowner must make more than $50,000 more than the average renter, and this disparity has been persistent and growing as a result of rising home prices and mortgage rates.
Rent Fell in Some U.S. Metros, But Hitting Record Highs in Others
Despite a drop in rents in some 28 metros across the nation, in four U.S. metro areas, asking rents reached record highs. Of the 44 CBSAs Redfin examined, Cincinnati’s median asking rent increased the most, up 7.4% YoY to a record $1,460 in May. This was followed by:
- Tampa, FL (4.2%)
- St. Louis (4%)
- Pittsburgh (3.5%)
- Birmingham, AL (2.4%)
Rents in three metro areas, excluding Cincinnati, reached a record high in May. The metros with the highest asking rents were:
- Chicago (+1.9% YoY to $1,781)
- Memphis (+1.9% to $1,274)
- Washington, D.C. (+2.4% to $2,104)
For apartments with 0–1 bedrooms, the median asking rent decreased by 0.7% annually to $1,492. It dropped 1.8% to $1,704 for two-bedroom flats, the biggest drop since February 2024. Additionally, the price of apartments with three or more bedrooms dropped by 0.2% to $2,009, the least amount in over a year.
Per the report, rents may be rising since all of the metro areas in this section—aside from Tampa and Washington, D.C.—are allowing less multifamily construction than the national average. However, new construction is on the rise in specific metros listed earlier in the report.
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