- Despite national growth in median apartment asking rents, Florida and Texas are seeing lower rents due to an apartment oversupply.
- Florida’s four biggest metro areas saw significant rent declines, with Jacksonville reporting the largest drop in median asking rent in five years.
- Austin also recorded a substantial YoY rent decline due to all the supply built during the pandemic to meet high demand.
According to a new Redfin report, apartment asking rents rose 0.7% YoY to $1,654, the highest median multifamily rent recorded since October 2022. But Florida and Texas are defying the national trend due to an apartment oversupply.
Florida vs. Texas
On a big-picture level, the glut of apartments built in popular ‘Great Migration’ states during the pandemic years has resulted in an oversupply that’s increased competition among multifamily owners, resulting in lower rents.
“It’s a good time to hunt for bargains if you’re a renter in Florida or Austin,” said Redfin senior economist Sheharyar Bokhari. Renters in these areas may benefit from concessions like free parking or discounted rent.
Rents have fallen dramatically in Florida’s four biggest metros. Jacksonville saw a 12.4% drop, the largest YoY rent decline in over five years. Tampa Bay reported 6% lower rents, while Orlando and Miami rents fell 4.8% and 3.8%, respectively.
However, Florida renters should also be aware of potentially higher home insurance costs that landlords might pass on via higher rents in the future.
Meanwhile, Austin recorded an even higher 12.6% YoY rent decline.
National Trends
Rents are also rising elsewhere in the country, particularly in the Midwest and Northeast, where new construction has been slower. Virginia Beach median asking rents grew the most YoY at 12.9%, followed by Cincinnati, D.C., Chicago, and Baltimore.
The national apartment vacancy rate has risen to 7.8%, up from 7.4% at the beginning of last year. Although new construction remains near record highs due to projects started during the pandemic, multifamily starts have fallen below their 10-year historical average, suggesting a potential shift in the market.
