- September marked the 14th consecutive month of YoY rent declines, with the median asking rent across the top 50 U.S. metros at $1,743, down 0.5% from the previous year.
- Studio rents saw the largest YoY decline at 2.3%, while rents for 1-bedroom and 2-bedroom units slipped by 0.5% and 0.4%, respectively.
- Cincinnati, OH, led the way with the fastest rent growth at 3.4%, while Nashville, TN, saw the steepest decline at -4.8%.
According to realtor.com, The U.S. rental market continued its downward trend in September 2024, marking 14 straight months of YoY rent declines.
By The Numbers
September data showed a decline across all unit sizes. The median asking rent for 0–2 bedroom properties was $1,743, a 0.5% dip compared to 2023. This trend signals potential relief for renters, though current rates remain way above pre-pandemic levels.
- Studios: The median rent was $1,442, down 2.3%, marking the largest drop among all unit types. This was $48 (3.2%) lower than the peak observed in October 2022.
- 1-Bedrooms: Rents slipped by 0.5% to $1,623, a slightly slower slippage compared to August.
- 2-Bedrooms: The median rent fell by 0.4% to $1,930, continuing a 16-month trend of annual declines. Despite this drop, rents for larger units saw the highest growth over the past five years, up 21.4%.
Overall, median rents have slipped by $17 from their peak in August 2022 but remain $286 (19.6%) higher than in September 2019.
Growth and Decline
Cincinnati led the top 10 U.S. metros for rent growth, with a 3.4% gain, followed by Washington, DC (2.9%) and New York City (2.8%). Midwest markets generally showed resilience, with cities like St. Louis and Minneapolis also experiencing growth.
This growth suggests factors like affordability and strong local labor markets continue to draw demand.
Conversely, the Southern U.S. dominated the list of cities with the largest rent declines. Nashville recorded the steepest drop at -4.8%, followed by markets like Dallas (-4.0%) and Austin (-3.7%).
These declines can be attributed to a surge in new multifamily housing, which has bumped up supply and put pressure on rents.
Slower Climb or Further to Fall?
As the rental market continues to stabilize, the YoY declines point to a period of adjustment after rapid pandemic-era growth. The Midwest appears to be benefiting from its relative affordability, while new housing development in the South is driving down rents.
Moving forward, renters may find better deals, particularly in areas where construction is outpacing demand. With rents still much higher than pre-pandemic levels, more adjustments may help moderate inflation, particularly in the shelter category, a major contributor to consumer price increases.
