December 2024 Rental Report: Rents Continue To Fall as New Construction Outpaces Demand

  • December 2024 marks the seventeenth consecutive month of year-over-year rent decline for 0-2 bedroom properties in the 50 largest metropolitan areas of the US. Rents nationally were down by 1.1% from December 2023.
  • The national median asking rent fell to $1,695, dipping below $1,700 for the first time since April 2022.
  • Median rent fell consistently across all units of all bedroom counts. Studios were down 1.3% year-over-year, 1-bedrooms and 2-bedrooms were both down 0.9%.
  • The nationwide absorption rate, the share of newly-built rental units that are successfully leased out within 3 months of completed construction, fell to 55%, in line with the level from 2019, suggesting that strong rental supply growth in recent years has returned the market to a more balanced state.
  • The absorption rate actually grew from 58% to 67% in the Northeast year-over-year, indicating that supply was less able to keep up with demand in this region in the most recent quarter.
  • A higher absorption rate for more affordable rental units suggests that demand continues to outpace supply for these types of homes.

 

https://www.realtor.com/research/december-2024-rent/

 

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