Redfin Reports U.S. Asking Rents Ticked Up for Second Straight Month in May, Hitting Highest Level Since 2022
The median asking rent climbed 0.8% year over year to
Apartment prices are closely tied to apartment supply. Multifamily construction surged during the pandemic moving frenzy, which pushed rent prices down because building owners were competing for tenants. While multifamily building starts have fallen below their 10-year historical average, there’s still a backlog of new units that are hitting the market every month, which is putting a lid on how much prices can grow.
“Demand from young renters remains high, as many of them are opting to stay put rather than contend with an increasingly unaffordable homebuying market,” said Redfin Senior Economist
For the past three quarters, the rental vacancy rate has hovered at 6.6%. That’s the highest level since 2021, though it’s worth noting that the vacancy rate is no longer growing like it was during the pandemic.
While asking rents ticked up in May, they’re stable compared to recent years; they rose as much as 17.5% year over year during the pandemic, and then fell as much as 4.1% this past summer. Still, the median asking rent in May was just
Rents Are Posting Double-Digit Gains in
In
The biggest asking rent declines were in
Rents are falling in the
Meanwhile, rents are rising in many Midwest metros because the region hasn’t been building as many apartments. The Midwest is also the most affordable region to live in, which helps bolster demand at a time when housing affordability is strained across most of the
To view the full report, including charts, metro-level data and methodology, please visit:
https://www.redfin.com/news/asking-rents-highest-since-2022
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Source: Redfin