- Nationwide, median rent prices climbed 0.4% year over year to $1,647 – the fourth consecutive month of annualized increases
- However, prices actually fell by $3 month-over-month
- Rents rose the most in Virginia Beach, Baltimore, and Washington, D.C., and fell the furthest in Austin, Jacksonville, and San Diego – all unchanged from last month except Baltimore, which usurped Cincinnati
What’s happening with rents nationwide?
The median U.S. asking rent rose 0.4% year over year in July to $1,647, just $53 below the $1,700 record high set in 2022. This is the fourth consecutive increase following 11 months of decreases. Demand from young renters and difficult homebuying conditions are the primary reasons behind the rising rents. In fact, America’s renter population is growing three-times faster than its homebuyer population, largely because homes are so unaffordable.
A recent drop in mortgage rates has prompted an increase in homebuyer activity, though, helping some renters enter the housing market.
Rents are rising nationwide largely because a large number of new apartments continue hitting the market. But asking rents may not stay at these levels for very long. Construction is slowing down and prices may start rising again soon. Now is still a good time for renters to find a deal, especially families looking for an apartment with at least three bedrooms.
Data breakout by bedroom
Contrary to the above data, median asking rents actually fell when isolating the data to bedroom types. In fact, rents fell across all bedroom types for the first time since June 2020. Median asking rents for 0-1 bedroom apartments fell 0.1% (to $1,498 a month), 2 bedroom apartments fell 0.3% (to $1,730) and 3+ bedroom apartments fell 2.4% (to $2,010).
It may seem odd that rents rose when looking at all bedroom types combined but fell when isolating by bedroom type. This is due to the statistical phenomenon known as Simpson’s paradox.
July 2024: U.S. metros where rents are rising
| U.S. metro area | Year-over-year change in median asking rent | Median asking rent |
| Virginia Beach, VA | +13.7% | $1,610 |
| Baltimore, MD | +12.5% | $1,665 |
| Washington, D.C. | +11.6% | $2,109 |
| Chicago, IL | +10.3% | $1,764 |
| Cincinnati, OH | +9.9% | $1,356 |
| Houston, TX | +9.6% | $1,356 |
| Minneapolis, MN | +7.4% | $1,648 |
| Boston, MA | +5.1% | $2,833 |
| Las Vegas, NV | +4.8% | $1,520 |
| Indianapolis, IN | +4.5% | $1,415 |
Why are rents rising in these metros?
Rent prices are continuing to stay hot in some historically affordable metros, largely because they haven’t built as many new apartments. So, as more people search for affordability, demand starts to outpace supply, which raises prices. The Midwest – typically the most affordable region to live in – has seen months of consistent price growth.
Washington, D.C. bucks the trend because rents are not particularly affordable. Rents are still rising, though, because of a surge in demand for lower-priced rentals. In Boston, slowing new construction and consistent demand has helped push prices up over the past year.
July 2024: U.S. metros where rents are falling
| U.S. metro area | Year-over-year change in median asking rent | Median asking rent |
| Austin, TX | -16.9% | $1,458 |
| Jacksonville, FL | -14.3% | $1.465 |
| San Diego, CA | -12.7% | $2,699 |
| San Francisco, CA | -7.6% | $2,693 |
| Tampa, FL | -5.9% | $1,750 |
| Nashville, TN | -4.8% | $1,594 |
| Phoenix, AZ | -4.4% | $1,528 |
| Orlando, FL | -4.4% | $1,772 |
| Los Angeles, CA | -4.4% | $2,772 |
| Portland, OR | -3.8% | $1,799 |
Why are rents falling in these metros?
One reason rent prices are falling in these metros is because of an abundance of supply. Many popular metros built a lot of new apartments in the past few years in an effort to meet demand. Now, some of the most popular pandemic hotspots are seeing newly-built apartments go unfilled.
Austin, for example, issued more multifamily building permits (per 10,000 people) than anywhere else in the country from 2021-2023. Austin has also led the nation in year-over-year rent decreases for the past two months, and prices have dropped $121 since April.
Rents may also be falling in these areas because they rose too quickly during the pandemic, causing some residents to get priced out. Now, they’re starting to come back down. In Tampa, for example, rents surged as much as 37.8% year over year in 2022, more than twice the nationwide average at the time.
Methodology
According to a Redfin analysis. Asking rent figures in this report cover newly listed units in buildings with five or more units. The median is calculated based on a rolling three-month period. For example, the median asking rent for July 2024 covers rentals that were listed on Rent. and Redfin during the three months ending July 31, 2024.
Metro-level data in this report covers 33 of the 50 most populous U.S. core-based statistical areas (CBSAs). National figures are based on data for the entire U.S.
Asking rents reflect the current costs of new leases. In other words, the amount shown as the median asking rent is not the median of what all renters are paying, but the median asking price of apartments available for rent.
