In September, the average asking rent in the U.S. increased by 0.6% year-over-year to $1,634, with the largest rises occurring in numerous East Coast and Midwestern metro areas. That’s according to a recent Redfin study that revealed a 0.2% decrease in rent month-over-month.
For the past two years, the median rent has remained relatively stable, ranging between $1,599 and $1,663—with 16 of the previous 24 months falling within a narrow window between $1,630 and $1,650. Simultaneously, incomes are increasing by about 4% annually, indicating that rent is now more affordable than it was two years ago.
“Rents remain stable nationally, but could look very different depending on where you live in the country,” said Redfin Senior Economist Sheharyar Bokhari. “On the East Coast and in the Midwest, there hasn’t been as much building activity, so asking rents are rising. Meanwhile, if you’re in a Sun Belt city where construction boomed following the pandemic, rents are now falling pretty fast.”
Sun Belt Metros See Rate Declines While Washington Posts the Highest Rent Increase
Out of the 50 most populous metro areas that Redfin examined in September, Washington, D.C., saw the highest rise in rent, rising 12% annually to $2,088. Asking rents in two other Eastern Seaboard metropolises, Virginia Beach, VA, and Baltimore, increased by double digits, by 11.3% and 10.6%, respectively. The remaining five large metro areas where rents increased the most were Chicago (+9.1%) and Cleveland (+11.1%), both in the Midwest.
The Sun Belt states topped the major metro areas with the most rent cuts, with the median asking rent in Jacksonville, Florida, falling 11.3% to $1,485. San Diego (-10.4%), Raleigh, NC (-10.6%), Austin, Texas (-9.9%), and Tampa, FL (-7.7%) completed the list of the five metro areas where asking rents dropped the most.
Top 10 Major Metros With the Highest Rent Increases
1. Washington, DC
- (Median asking rent in September: $2,088)
- (YoY change: 12%)
2. Virginia Beach, VA
- ($1,625)
- (11.3%)
3. Cleveland
- ($1,350)
- (11.1%)
4. Baltimore
- ($1,620)
- (10.6%)
5. Chicago
- ($1,768)
- (9.1%)
6. Minneapolis
- ($1,649)
- (8.3%)
7. Providence, RI
- ($2,103)
- (7.8%)
8. Cincinnati
- ($1,341)
- (7.3%)
9. Houston
- ($1,299)
- (7%)
10. Louisville/Jefferson County, KY
- ($1,260)
- (6.4%)
Asking Rents Decline Across All Bedroom Counts
Before July, asking rents hadn’t dropped across all bedroom counts for over four years. This happened for the second time in three months.
Changes in Median asking Rents for Apartments:
0-1 Bedroom Apartments
- (Median asking rent: $1,489)
- (YoY change: -0.2%)
2 Bedroom Apartments
- ($1,714)
- (-0.1%)
3+ Bedroom Apartments
- ($1,995)
- (-1.9%)
The monthly median asking rent for apartments with one to one and two bedrooms decreased by 0.2% to $1,489, 0.1% to $1,714, and 1.9% to $1,995 for apartments with three or more bedrooms.
Top 10 Major Metros With the Highest Rent Decreases
1. Jacksonville, FL
- (Median asking rent in September: $1,485)
- (YoY change: -11.3%)
2. Raleigh, NC
- ($1,457)
- (-10.6%)
3. San Diego
- ($2,685)
- (-10.4%)
4. Austin, Texas
- ($1,503)
- (-9.9%)
5. Tampa, FL
- ($1,715)
- (-7.7%)
6. San Francisco
- ($2,683)
- (-7.5%)
7. Pittsburgh
- ($1,394)
- (-5.8%)
8. Phoenix
- ($1,505)
- (-5.6%)
9. Nashville, TN
- ($1,561)
- (-4.6%)
10. Miami
- ($2,385)
- (-4.4%)
To read the full report, including more data, charts, and methodology, click here.
