Redfin: U.S. Apartment Asking Rents See Biggest Increase Since 2023

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Redfin, Seattle, found the median asking rent in July rose 1.7% year-over-year. That’s the largest increase since January 2023.

The median asking rent now stands at $1,790, but remains $70 below the July 2022 record high of $1,860.

This was the second consecutive month of year-over-year increases. Month-over-month, the median asking rent grew 0.8%.

“Asking rents may be climbing because shrinking apartment supply is coinciding with growing renter demand, which is being fueled by the high cost of homeownership,” said Redfin Senior Economist Sheharyar Bokhari. “Rents have been sluggish for the past two years because the pandemic building boom created a surplus of supply, which left landlords scrambling to fill vacancies and gave renters negotiating power. But now a slowdown in apartment construction may be shifting the balance of power toward landlords.”

The median asking rent for studio and 1-bedroom apartments rose 3.4% year-over-year to $1,650 in July. For 2-bedroom apartments, it increased 1.7% to $1,907. For three-bedroom-plus apartments, it fell 1.5% to $2,192.

San Jose, Calif., saw the biggest increase in median asking rent, as it jumped 8.8% year-over-year to $3,569. It was followed by Chicago (up 8.6%), Washington, D.C., (up 8.5%), Pittsburgh (up 7.7%), and Philadelphia (up 7.5%).

Seven metros saw asking rents fall. Jacksonville, Fla., had the biggest annual decline (3.5%). It was followed by Austin, Texas, (down 2.6%), Louisville, Ky., (down 2.4%), Cincinnati (down 1.7%), Phoenix (down 1.1%), Cleveland (down 1%), and Orlando, Fla., (down 0.2%).