Asking Rents Rise in August, Redfin Reports

Redfin, Seattle, found the median U.S. asking rent rose 2.6%–or $45–year-over-year to hit $1,790 in August.

That’s the largest increase since December 2022, and the average asking rent now hovers just $70 below the record hit in summer 2022.

August saw the third straight month of year-over-year increases, after about two years of stagnation or falling rents.

And, month-over-month, it was up by 0.3%.

“Apartment construction boomed during the pandemic, but many of those projects have since wrapped up and fewer new ones are breaking ground,” said Redfin Senior Economist Sheharyar Bokhari. “Builders are pumping the brakes due to high financing costs, elevated construction expenses and weaker investor appetite. With fewer new apartments coming on the market, renters have fewer options to choose from and landlords are regaining the ability to raise prices.”

New apartments currently being completed fell to a seasonally adjusted annual rate of 385,000 in July (the latest data available); that’s down 45.4% from August 2024’s high water mark of 705,000.

Broken down by apartment type, the median asking rent for apartments with 0-1 bedrooms rose 4.4% year-over-year to $1,650. For 2-bedroom units it increased 3.6% to $1,920. For 3-plus-bedroom units, it was flat at $2,199.

The Chicago metro area saw the largest increase in median asking rent in August, up by 10.7% year-over-year to $2,275. San Jose, Calif., (up by 10.6%), Philadelphia (up by 9.9%), Pittsburgh (up by 9.8%) and Washington, D.C., (up by 8.7%) rounded out the list of increases.

Three metro areas saw declines–Austin, Texas, (down by 3.1%), Louisville, Ky., (down by 2.4%), and Jacksonville, Fla. (down by 1.9%).