Asking rents have fallen in the last three years, but prices could begin to rise soon, Redfin says.
Median asking rents in the U.S. were $1,625 in April, down 5% from the record high of $1,705 set in August 2022.
Month over month, median asking rent rose 1.2%, typical for that time of year, but fell 1% from a year ago, the largest decline in 14 months as a result of a lopsided supply and demand.
As more units have hit the market in recent years, the number of renters hasn’t kept up and newly built homes and apartment complexes are struggling to match the stream of supply with demand.
While asking rent costs are down across the nation, Austin, Texas, led the retreat with a nearly 10% decline year over year down to an average of $1,399 last month.
“Many people in Austin are finding that it’s a lot cheaper to rent than buy,” Austin real estate agent Andrew Vallejo said. “You could buy a home and have a monthly mortgage payment of $3,200, but the same home will rent for $1,900. Unless the buyer has a good amount of money for a down payment, renting is way less expensive.”
Other cities witnessing a decline in rent include Minneapolis (-7.3%), Portland, Ore. (-5.3%), Raleigh, N.C. (-5.2%), San Diego (-5.2%), and Jacksonville, Fla., (-5.2%).
Asking rent prices increased the most in Cincinnati (8.7%), Pittsburgh (7.5%), Baltimore (5.9%), Birmingham, Ala. (5.8%), and Washington, D.C. (5.2%).
