- U.S. apartment rents rose 0.9% YoY in August, the largest increase in 18 months, while multifamily construction kept rents relatively stable.
- Wage growth of 3.8% combined with stable rents has improved rental affordability in many areas of the country.
- Cities like Austin saw the sharpest rent drops (-17.6%), while Virginia Beach enjoyed the largest rent growth (+15.2%).
As reported in Globest, stable apartment rents, driven by a surge in multifamily construction, are helping improve apartment affordability across the country.
By The Numbers
A Redfin report for August showed that apartment rents were up 0.9%, the highest growth in 18 months, with median rents at $1,645.
Despite this, rents remain below their peak of $1.7K from two years ago. Coupled with 3.8% wage growth, rents have grown more affordable in several key regions.
On a national level, stabler rents plus wage growth have made apartment living more affordable overall. The report revealed that median rents for two-bedroom apartments remained unchanged at $1,725 YoY, while smaller units saw only slight rent growth.
Construction Stabilizes Rents
As multifamily building completions hit a historic high in 2024, some areas are seeing supply outpace demand, prompting rent cuts and concessions.
The construction boom has particularly impacted Sun Belt states, where stable or even declining rents have become more common.
For example, in Austin, rents dropped by 17.6% YoY in August, the steepest decline among the 33 major metros Redfin analyzed.
Rents Rise in Select Markets
Of course, not all regions saw rent declines during the quarter. Virginia Beach reported the steepest rise in rents, up 15.2% rise in August.
Other cities like Washington, D.C., Baltimore, Chicago, and Cincinnati also recorded notable rent increases, contrasting with the overall national trend of more affordable rents.
Despite some market variability, multifamily rents are expected to remain stable in the near term as the new construction backlog continues to supply apartments across the country.
