Overall, 28 of the 44 major U.S. core-based statistical areas (CBSAs) Redfin analyzed saw asking rents decline last month—the highest number since September 2023.
“Apartment construction in America has been hovering near a 50-year high, and even though renter demand is strong, it’s not keeping pace with supply,” said Redfin Senior Economist Sheharyar Bokhari. “Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.”
Multifamily construction surged in the wake of the pandemic moving frenzy, and while it has started to taper off, it’s still at historically high levels. As it continues to slow, asking rents may rebound.
The rental vacancy rate for buildings with five or more units was 8.2% in the first quarter—the most recent period for which data is available. That’s tied with the prior quarter for the highest level since early 2021. Less than half of newly built apartments are getting rented out within three months—one of the lowest shares on record.
Source: Asking Rents Are Falling in 28 U.S. Metros—the Most Since 2023
