- Asking rent prices are falling in 28 of 44 major U.S. metropolitan areas as of May, the most urban areas since Sept. 2023, according to Redfin.
- Many rentals are left vacant for months following a surge in apartment construction, which is giving renters negotiating power.
- Still, rent asking prices hit record highs in Chicago, Cincinnati, Memphis and Washington, D.C.
Rent is coming down in many parts of the U.S. after more apartments were built.
The median asking rent fell around 1% year over year in May to $1,633, a decline of $72 from a record high in August 2022, according to a report from real-estate broker Redfin.
“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 Redfin senior economist Sheharyar Bokhari in a statement.
The decline in rent prices comes as less than half of newly built apartments are getting rented within three months as of the end of 2024, Redfin said.
“Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high,” Bokhari said.
Asking rent prices fell the most in Austin, Texas, with a median decline of 8.8%, followed by Minneapolis, Minn. (-6.3%), Colombus, Ohio (-3.5%), Nashville, Tenn. (-3.4%) and Portland, Ore. (-3.4%) in the rest of the top five.
Redfin said that Austin granted more permits to build multifamily units from March to April than any other metro.
Still, rent went up in 16 of the 44 major metros, with Cincinnati, Ohio having the biggest increase of 7.4%, followed Tampa, Fla. (4.2%), St. Louis, Mo. (4%), Pittsburgh, Pa. (3.5%) and Washington D.C. (2.4%) in the rest of the top five.
Asking rent also hit record highs in four metros: Chicago ($1,781), Cincinnati ($1,460), Memphis ($1,274) and Washington, D.C. ($2,104).