The median asking rent in the U.S. increased by just 0.2% year-over-year to $1,619 in October, according to new Redfin data. Month-over-month, overall rents decreased by 0.6%.
Due to a development boom in some Sun Belt states brought on by a spike in demand during the epidemic, rents have stayed relatively stable over the last two years. However, rental markets may fluctuate greatly depending on where you reside in the nation; in some metro areas, asking rents are increasing by double digits, while in others, they are declining by comparable amounts.
“New apartments are being completed at the fastest pace on record and that’s leading to rents falling in places like Tampa or Jacksonville, where supply now outweighs demand,” said Redfin Senior Economist Sheharyar Bokhari. “Construction is slowing, but we will continue to see a wave of new apartment buildings coming onto the market in coming months, which is good news for renters looking for an affordable rental in 2025.”
Rents in Sun Belt Metro Areas Drop, While East Coast & Midwest See the Highest Increases
Compared to the Sun Belt, the Midwest and East Coast have seen the largest increases in rents due to a lack of new building. Out of the 50 most populated metro areas we examined in October, Virginia Beach, VA, saw the largest rent increase, rising 11.7% annually to $1,647.
Top 10 Major U.S. Metros With Highest Rent Increases
| U.S. Metro | Median Asking Rent (Oct) | Median Asking Rent YoY Change | Price Per Square Foot YoY Change |
| Virginia Beach, VA | $1,647 | 11.7% | 9.8% |
| Washington, DC | $2,060 | 11.1% | 11.4% |
| Cleveland | $1,350 | 9.8% | 9.0% |
| Chicago | $1,768 | 8.8% | 3.0% |
| Baltimore | $1,595 | 8.5% | 5.2% |
| Providence, RI | $2,100 | 7.7% | 9.3% |
| Memphis, TN | $1,249 | 6.4% | 5.4% |
| Minneapolis | $1,625 | 6.2% | 8.4% |
| Columbus, Ohio | $1,450 | 6.1% | 9.5% |
| Detroit | $1,405 | 6.0% | 7.2% |
Rents in Washington, DC rose 11.1%, while Cleveland (+9.8%), Chicago (+8.8%) and Baltimore (+8.5%) rounded out the five major metros where rents rose the most.
Raleigh, NC saw the biggest rent decline, down 8.8% year over year to $1,450. It was followed by Tampa, FL (-8.5%), Jacksonville, FL (-8.4%), Austin, Texas (-8.2%) and San Diego (-6.4%).
Major Metros With Highest Rent Decreases
| U.S. Metro | Median Asking Rent (Oct) | YoY Change | Price Per Square Foot YoY Change |
| Raleigh, NC | $1,450 | -8.8% | -10.2% |
| Tampa, FL | $1,736 | -8.5% | -5.4% |
| Jacksonville, FL | $1,495 | -8.4% | -9.3% |
| Austin, Texas | $1,515 | -8.2% | -10.4% |
| San Diego | $2,770 | -6.4% | -4.1% |
| Nashville, TN | $1,526 | -5.9% | -12.0% |
| San Francisco | $2,685 | -5.8% | -6.1% |
| Pittsburgh | $1,394 | -4.8% | -0.7% |
| Orlando, FL | $1,720 | -4.4% | -6.1% |
| Phoenix | $1,497 | -4.3% | -3.7% |
Rents Dropped Across All Bedroom Counts for the Third Time in Four Months
For the third time in four months, asking rentals decreased across all bedroom counts, despite a minor increase overall last month. Simpson’s paradox is a statistical phenomenon that explains the slight difference between the three distinct bedroom counts—all of which decreased—and the total median rent (which showed a slight 0.2% gain).
The median monthly rent for apartments with 0–1 bedrooms decreased by 0.4%, to $1,475; for apartments with 2 bedrooms, it decreased by 0.1%, to $1,699; and for apartments with 3 or more bedrooms, it decreased by 1.5%, to $1,985.
| Number of Units | Median Asking Rent | YoY Change |
| 0-1 Bedroom Apartments | $1,475 | -0.4% |
| 2 Bedroom Apartments | $1,699 | -0.1% |
| 3+ Bedroom Apartments | $1,985 | -1.5% |
For the 18th Consecutive Month, Asking Rents Per Square Foot has Decreased
For the 18th consecutive month, October saw a 1.1% decrease in rental unit asking prices per square foot compared to a year earlier, underscoring the general improvement in affordability for renters.
The general rise in supply brought on by the recent building boom is one factor contributing to the decline in price per square foot. According to the latest data available, the second quarter saw a 6.2% year-over-year decline in the rents of newly built apartments. Building owners are now fighting with one another to fill their apartments in places like Florida and Texas where new development has exploded, which has resulted in lower rentals and concessions being offered.
To read the full report, including more data, charts, and methodology, click here.
The post Good News for Renters Seeking Affordable Rentals first appeared on The MortgagePoint.
