- Median US asking rent fell 0.5% year-over-year in June to $1,642, marking the fourth consecutive annual decline.
- A surge in apartment construction is providing renters with leverage, especially in high-supply markets like Austin and Minneapolis.
- Despite recent declines, asking rents remain just $63 shy of their August 2022 peak of $1,705.
- Rent growth is holding in low-supply metros such as Cincinnati and St. Louis, where rents are still rising year-over-year.
Rental Market Cooldown
Median asking rents fell slightly in June, declining 0.5% year-over-year to $1,642, according to a new report from Redfin. While modest, the drop marks the fourth consecutive month of annual rent declines, a sign of shifting momentum in favor of renters. Despite the cooling trend, asking rents remain close to their all-time high, just $63 below the $1,705 peak recorded in August 2022, per GlobeSt.
Supply Outpaces Demand
The main driver of falling rents? A wave of new apartment deliveries. Apartment construction is near a 50-year high, and less than half of newly completed units in late 2024 were occupied within three months—giving tenants more power at the negotiating table.
“Renters have the upper hand—at least for now,” said Redfin Senior Economist Sheharyar Bokhari. “With landlords under pressure to fill units, renters can often negotiate perks like discounted rent, flexible lease terms, or free amenities.”
Local Standouts
Among major metros, Minneapolis led rent declines with a 5.8% drop, followed by Austin (-5.7%) and Las Vegas (-4%). In Austin, asking rents fell to a four-year low of $1,379 as the city continues to absorb a glut of new supply from the pandemic-era permitting boom.
Conversely, cities with limited apartment construction saw rents increase. Cincinnati posted a 6.2% jump, with St. Louis (+4.3%) and Pittsburgh (+3.7%) also recording notable gains.
Apartment Type Breakdown
The median asking rent for two-bedroom apartments declined 1.5% to $1,713. Rents for studios and one-bedroom units held steady at $1,499, while three-bedroom or larger units averaged $2,014, showing no major change from a year ago.
What’s Next
Redfin expects renter-friendly conditions to persist in the short term as new units continue to hit the market. However, with apartment permitting now back to pre-pandemic levels and rental demand projected to remain strong, current tenant advantages may be short-lived.
Bottom Line
For now, renters in high-supply markets have room to negotiate. But with the pace of new development slowing, those perks may disappear as equilibrium returns to the rental market.
