According to a new report from Redfin, the national median asking rent remained mostly unchanged in October, inching up a mere 0.2% year-over-year to $1,619.
That figure is down slightly by 0.6% compared to the previous month.
Don't Miss:
- Unlock the hidden potential of commercial real estate — This platform allows individuals to invest in commercial real estate offering a 12% target yield with a bonus 1% return boost today!
- This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
The flat trend follows a period of relative stability over the past two years. The pre-pandemic surge in demand had fueled construction, particularly in the Sun Belt States, leading to a more balanced rental market.
However, the national picture masks significant local variations. While some metropolitan areas experience double-digit growth in asking rents, others face similar-sized declines. Considering your specific location is essential to navigating the rental market.
Trending: Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O’Reilly and Rudy Giuliani are using this platform to create customized gold IRAs to help shield their savings from inflation and economic turbulence.
"New apartments are being completed at the fastest pace on record and that's leading to rents falling in places like Tampa or Jacksonville, Florida, where supply now outweighs demand," Redfin Senior Economist Sheharyar Bokhari said. "Construction is slowing, but we will continue to see a wave of new apartment buildings coming onto the market in the coming months, which is good news for renters looking for an affordable rental in 2025."
Rents are climbing the fastest in the Midwest and East Coast, regions where new construction has lagged compared to the Sun Belt. Among the 50 largest U.S. metro areas analyzed in October, Virginia Beach, Virginia, recorded the steepest year-over-year increase, with rents rising 11.7% to an average of $1,647.
Trending: Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Major Metros With Highest Rent Increases
| Median Asking Rent in October | Median Asking Rent YoY Change | Price Per Square Foot YoY Change | |
| Virginia Beach, Va. | $1,647 | 11.7% | 9.8% |
| Washington, D.C. | $2,060 | 11.1% | 11.4% |
| Cleveland, Ohio | $1,350 | 9.8% | 9% |
| Chicago | $1,768 | 8.8% | 3% |
| Baltimore, Md. | $1,595 | 8.5% | 5.2% |
| Providence, R.I. | $2,100 | 7.7% | 9.3% |
| Memphis, Tenn. | $1,249 | 6.4% | 5.4% |
| Minneapolis | $1,625 | 6.2% | 8.4% |
| Columbus, Ohio | $1,450 | 6.1% | 9.5% |
| Detroit | $1,405 | 6% | 7.2% |
Source: Redfin
Raleigh, North Carolina, experienced the largest rent decrease among major metro areas, with rents falling 8.8% year-over-year to an average of $1,450. Other cities with significant declines include Tampa, Florida (-8.5%), Jacksonville, Florida (-8.4%), Austin, Texas (-8.2% and San Diego (-6.4%).
See Also: The Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).
Major Metros With Highest Rent Decreases
| Median Asking Rent In October | YoY Change | Price Per Square Foot YoY Change | |
| Raleigh, N.C. | $1,450 | -8.8% | -10.2% |
| Tampa, Florida | $1,736 | -8.5% | -5.4% |
| Jacksonville, Florida | $1,495 | -8.4% | -9.3% |
| Austin, Texas | $1,515 | -8.2% | -10.4% |
| San Diego | $2,770 | -6.4% | -4.1% |
| Nashville, Tennessee | $1,526 | -5.9% | -12% |
| San Francisco | $2,685 | -5.8% | -6.1% |
| Pittsburgh | $1,394 | -4.8% | -0.7% |
| Orlando, Florida | $1,720 | -4.4% | -6.1% |
| Phoenix | $1,497 | -4.3% | -3.7% |
Source: Redfin
The rental market continues to soften, with the asking price per square foot for apartments declining for the 18th consecutive month in October. This 1.1% year-over-year decrease reflects an improving affordability landscape for renters.
A key factor driving this trend is the increased supply of rental units because of recent construction booms, particularly in Sun Belt states like Florida and Texas.
With more units available, landlords face heightened competition, prompting them to offer lower rents and incentives to attract tenants.
A 9% Return In Just 3 Months
EquityMultiple's ‘Alpine Note — Basecamp Series' is turning heads and opening wallets. This short-term note investment offers investors a 9% rate of return (APY) with just a 3 month term and $5K minimum. The Basecamp rate is at a significant spread to t-bills. This healthy rate of return won't last long. With the Fed poised to cut interest rates in the near future, now could be the time to lock in a favorable rate of return with a flexible, relatively liquid investment option.
What's more, Alpine Note — Basecamp can be rolled into another Alpine Note for compounding returns, or into another of EquityMultiple's rigorously vetted real estate investments, which also carry a minimum investment of just $5K. Basecamp is exclusively open to new investors on the EquityMultiple platform.
Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
