Key Details:
- Nationally, rents fell 0.7% year-over-year in April 2024.
- Some Sun Belt and West Coast metros saw the biggest drops in rent compared to their peaks, with Austin leading the way at -11.5%.
- In contrast, Indianapolis, Milwaukee, and Minneapolis in the Midwest witnessed record-high rents.
In April 2024, national rents declined by 0.7% year-over-year, according to Realtor.com®’s latest Rental Report.
While this marks the ninth consecutive month of decline, rents are still rising in some areas. This is particularly true in the Midwest where low unemployment and a lack of new construction are driving demand.
Danielle Hale, Chief Economist at Realtor.com®, emphasized the variability of rental trends across different locations:
“In the ever-fluctuating real estate market, renters will find that trends vary significantly by location. Renters in some historically expensive areas are seeing lower prices compared to what they would have paid at the peak of the market, while many relatively affordable markets are witnessing a continued rise in rental costs to new highs, and the scales could tip to even more markets later this summer.”
National Rental Market Overview: April 2024
Declining Rents Across the Country
The national median rent for 0-2 bedroom units fell by 0.7% year-over-year in April 2024, reaching $1,723. Even with nine consecutive months of decline, rents are just $33, or 1.9%, below their peak in August 2022.
April saw continued declines in rents across all unit sizes:
- Studios experienced the largest drop, with median rents falling by 1.7% year-over-year to $1,443, down 3.2% from their October 2022 peak.
- One-bedroom units saw an 11th consecutive month of declines, with median rents falling by 1.4% to $1,601.
- Two-bedroom units also declined by 0.7%, with median rents at $1,916, 1.9% below their August 2022 peak.
Biggest Savings in South and West Markets
Renters in Austin, Texas, Las Vegas, and San Francisco enjoyed the biggest rent savings. Austin saw the largest percentage drop, with median rents falling by 11.5% ($195) from their peak in September 2022, down to $1,494. This decline is partly attributed to an influx of new multi-family homes, increasing the rental vacancy rate.
Las Vegas and San Francisco also saw notable reductions. Las Vegas rents decreased by 11.1% ($184) from their June 2022 peak, while San Francisco’s rents fell by 9.9% ($303) from their peak in July 2022.
Midwest Markets See Record-High Rents
Not every market is experiencing declines in rent. Indianapolis, Milwaukee and Minneapolis each experienced record-high rents in April:
- Indianapolis: up 4.5% to $1,334
- Milwaukee: up 3.8% to $1,671
- Minneapolis: up 2.5% to $1,529
These increases are driven by below-average unemployment rates and a slower pace of new home construction compared to other markets. Current rental prices in other Midwest cities—including Cincinnati, Cleveland and Chicago—are close to their peak levels and could reach new highs this summer if the growth trend continues.
Rental Data for the 50 Largest Metros
Below is a sortable table showcasing Redfin’s April 2024 rental data for the 50 largest metros.
For more information, including methodology, visit Redfin’s Rental Report.
