St. Pete-Clearwater Sun

While U.S. inflation saw a slight uptick in November, renters received some welcome news: rental prices are declining.

A recent analysis of listings on Rent.com and Redfin.com reveals that the median asking rent fell by 0.7% year-over-year in November, settling at $1,595. This marks a 6.2% drop from the August 2022 peak of $1,700, which was the highest on record.

RELATED: Planning to Buy a Home in 2025? Here’s What to Expect for Mortgage Rates

When measured per square foot, rental prices decreased by 2.2% compared to November 2023, hitting their lowest levels since December 2021. Apartments with three or more bedrooms experienced the sharpest declines, with asking rents down 2.3%, followed by studios and one-bedrooms (1.7%) and two-bedroom units (1.1%).

Biggest Drops in the Sun Belt

Sun Belt cities, where apartment construction has surged, saw the most significant rent reductions. Leading the list was Austin, Texas, with a 12.4% drop, followed by Tampa, Florida (-11.3%), Raleigh, North Carolina (-8.4%), Jacksonville, Florida (-7.5%), and Nashville, Tennessee (-7.0%).

RELATED: First-Time Homebuyer Age Reaches New High, According to New National Realtors Survey

“Renters in areas where construction has boomed are in a sweet spot right now,” said Redfin Senior Economist Sheharyar Bokhari. “Affordability is improving as rents fall and wages rise, and there is increased choice with more and more new apartment buildings opening.”

New Construction Drives Down Costs

The second quarter of 2024 saw more apartments built than during any quarter in the past 12 years. This surge in construction has increased vacancies in buildings with five or more units, contributing to the decline in rental costs.

Cities Where Rents Are Rising

Not all cities shared in the decline. Cleveland recorded the steepest rent increases among major metropolitan areas in November, followed by Louisville, Kentucky; Baltimore, Maryland; Washington, D.C.; and Providence, Rhode Island.

The rental market shift underscores how increased housing supply in growing regions is helping to balance affordability, even as other areas continue to face rising costs.

Want to win a $25 Amazon gift card? 

To enter, simply follow us on Facebook, Instagram, Threads, or X between now and Tuesday, December 24th. (Psst… You can enter up to 4x by following us on all four! But sorry, U.S. residents only.)

(Image credit: iStock)