Redfin: November Asking Rents Post Biggest Drop in More Than Three Years

(Image courtesy of Redfin)

Redfin, Seattle, reported asking rents declined 2.1% year-over-year in November–the biggest annual drop since immediately pre-pandemic in February 2020.

They also fell 0.6% from October. The median asking rent now stands at $1,967.

However, despite the drops, rents are still 22.1% higher than they were in the same month in 2019. The record high, $2,054, was set in August 2022.

“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.”

One of the major factors driving down rents: more apartments on the market due to a construction boom. Vacancies are climbing, up to 6.6% in the third quarter, propelling landlords to provide various deals.

The number of completed apartments in the U.S. rose 7% year-over-year in the third quarter to a seasonally adjusted annual rate of 1.2 million–one of the highest levels over the past 30 years.

Apartment starts remain high, but have begun to decline. In the third quarter, that metric fell 26.2% year-over-year to a seasonally adjusted annual rate of 1.2 million.