- U.S. median asking rent fell 1% year-over-year to $1,625 in April 2025, the largest drop in 14 months.
- Austin experienced the most significant decline, with median rents dropping nearly 10% year-over-year.
- Rents for two-bedroom apartments saw the steepest decrease, falling 1.5% annually.
The U.S. rental market is seeing a notable shift as the median asking rent fell by 1% year-over-year to $1,625 in April 2025, according to a new report by Redfin (RDFN, Financial). This represents the most significant decline since February 2024, with the latest figure marking an $80 drop from the record high of $1,705 in August 2022. Although there was a month-over-month increase of 1.2%, the overall trend points towards declining rental costs driven by a surge in new apartment supply.
The decrease in asking rents is most pronounced in Austin, Texas, where the median rent dropped by 9.6% to $1,399, making it the largest year-over-year percentage decline among the 44 major metropolitan areas analyzed. This reduction is attributed to the significant construction activity in the region during the pandemic, providing renters in Austin with more affordable housing options.
In contrast, the asking rents saw increases in Cincinnati (8.7%), Pittsburgh (7.5%), and Baltimore (5.9%). The decline in rental costs is primarily affecting larger apartments, with rents for two-bedroom units falling by 1.5% to $1,699, the largest decrease since early 2024.
Redfin's Senior Economist, Sheharyar Bokhari, notes that while rental demand remains robust, the increase in available units outpaces this demand, contributing to the overall drop in asking rents. The vacancy rate for buildings with five or more units stands at 8.2%, the highest since early 2021, further indicating an oversupply in certain markets.
As the rental market adjusts, Redfin expects that asking rents could see a rebound if the construction of new apartments continues to taper off. The current market conditions offer a rare opportunity for renters to secure more affordable housing options compared to the steep costs of home buying, amplified by high mortgage rates.
