Median Asking Rent Sees Biggest Annual Drop in More Than 3 Years, Redfin Reports
Originally published on December 13, 2023, by Isabelle Novak for Redfin.
The median U.S. asking rent declined 2.1% year over year in November to $1,967—the biggest annual drop since February 2020—according to a report from Redfin (redfin.com), the technology-powered real estate brokerage. This is a 0.6% decline in asking rents since October.
The rental market has lost momentum over the last year and a half in large part because there are more apartments on the market—the result of a building boom in recent years. This jump in supply has left many landlords struggling to fill vacancies, motivating them to drop asking rents in some cases.
“Renters are finally catching a break. Better deals are easier to come by because landlords are doling out concessions and rents have started falling in a meaningful way. Rising supply also means renters have more good options to choose from,” said Redfin Chief Economist Daryl Fairweather. “With homeownership so expensive, renting has started to lose its stigma. Still, we may see more renters jump into the homebuying market next year as home-sale prices and mortgage rates tick down.”