Redfin Reports U.S. Asking Rents Fell 1% Year Over Year in April—Biggest Drop in 14 Months
The median asking rent was $1,625, down $80 from the record high, as elevated apartment supply pushed rents lower. Asking rents fell fastest in Austin, down 10% year over year and $400 below the record high.
(NASDAQ:RDFN) — The median U.S. asking rent fell 1% year over year to $1,625 in April, marking the biggest decline since February 2024, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's $80 below the August 2022 record high of $1,705.
On a month-over-month basis, the median U.S. asking rent rose 1.2% in April—typical for this time of year.
"Asking rents are sluggish because there are more apartments for rent than people who want to rent them," said Redfin Senior Economist Sheharyar Bokhari. "Renter demand is strong, but growth in apartment supply is even stronger because multifamily construction surged in the wake of the pandemic moving frenzy. Permits to build apartments have started to taper off, though, so asking rents could rebound in the coming months."
The rental vacancy rate for buildings with five or more units was 8.2% in the first quarter—the most recent period for which data is available. That's tied with the prior quarter for the highest level since early 2021. Less than half of newly built apartments are getting rented out within three months—one of the lowest shares on record. This helps explain why asking rents are declining in many areas.
But while asking rents fell last month, zooming out to a longer timeline paints a picture of stability. April marked the 14th-straight month in which asking rents barely decreased or increased, with a year-over-year change of 1% or less during each of those months. Those changes pale in comparison to the wild swings during the pandemic era, when asking rents jumped as much as 17.7% and fell as much as 4.1%.
Austin Asking Rents Are Down 10% From a Year Ago
In Austin, TX, the median asking rent dropped 9.6% year over year to $1,399 in April—$400 below the record high. That's the largest decline in percentage terms among the 44 major core-based statistical areas (CBSAs) Redfin analyzed. Next came Minneapolis (-7.3%), Portland, OR (-5.3%), San Diego (-5.2%), and Raleigh, NC (-5.2%).
Texas was one of the top homebuilders during the pandemic building boom, which is one reason Austin is seeing such a large decline in rents, offering renters some relief.
"Many people in Austin are finding that it's a lot cheaper to rent than buy," said local Redfin Premier real estate agent Andrew Vallejo. "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."
The typical U.S. homebuyer needs to earn over $50,000 more than the typical renter to afford monthly housing payments, and the gap has been widening. That's partly because mortgage payments are at a record high due to elevated mortgage rates. This affordability gap is boosting demand for rentals.
Asking rents rose most in Cincinnati (8.7%), Pittsburgh (7.5%), Baltimore (5.9%), Birmingham, AL (5.8%) and Washington, D.C. (5.2%).
Asking Rents Are Falling Fastest for Two Bedroom Apartments
The median asking rent for 0-1 bedroom apartments fell 1.2% year over year to $1,481. For 2 bedroom apartments, it decreased 1.5% to $1,699—the largest decline since February 2024. And for 3+ bedroom apartments, it fell 1% to $1,999.
To view the full report, including charts, a metro-level summary and methodology, please visit: https://www.redfin.com/news/rental-tracker-april-2025
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin's subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250512168334/en/
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