U.S. Asking Rents Decline to 2022 Levels: Tampa and Jacksonville Shift Toward a Renter’s Market
In a significant turn for renters across the United States, median asking rents have dropped to levels last seen in March 2022, signaling a notable shift in the rental market. According to real estate brokerage Redfin, the median U.S. asking rent fell 0.3% year-over-year in December 2024, reaching $1,594. This decrease is part of a broader trend reflecting changing dynamics in supply and demand within the housing market.
Rent Levels and Market Trends
The median asking rent decreased slightly by 0.1% from November 2024 and is down 6.2% from the peak of $1,700 recorded in August 2022. The asking rent per square foot also declined, falling 1.9% year-over-year to $1.78. These trends highlight a growing shift in favor of renters, driven by increased housing supply and rising vacancy rates.
Apartment completions soared 58.1% year-over-year in Q3 2024, marking the highest level of completions since 1974. This construction boom pushed the vacancy rate for buildings with five or more units to 8%, the highest since early 2021. This influx of new units has empowered renters with more options and greater negotiating power, as landlords contend with filling empty apartments.
Regional Dynamics: Sun Belt Leads in Rent Declines
The Sun Belt, known for its rapid population growth and housing construction, has emerged as a focal point in the decline of asking rents. Florida, in particular, boasts two of the most significant drops in rental costs. Tampa saw a 10.4% decrease, while Jacksonville recorded a 6.7% decline. Austin, TX, leads nationally with a dramatic 16.3% year-over-year drop in median asking rent, plummeting 22.6% from its August 2023 peak to $1,393.
Other metropolitan areas, such as Nashville (-6.3%) and New York (-4.6%), also experienced declines, underscoring the broader trend. Experts attribute the Sun Belt's rent reductions to a combination of aggressive housing development and market correction following unsustainable price surges during the pandemic.
Nationwide Breakdown by Apartment Type
Asking rents declined across all apartment types for the sixth consecutive month, with larger units showing the steepest decreases:
0-1 Bedroom Apartments: Down 1% year-over-year to $1,449.
2 Bedroom Apartments: Declined 0.6% to $1,665.
3+ Bedroom Apartments: Dropped 2.5% to $1,950.
These figures suggest that larger apartments, often catering to families or shared living arrangements, are experiencing the highest price corrections.
Areas with Rising Rents
While many metros are enjoying a dip in rental costs, others are witnessing increases. Providence, RI, saw the sharpest rent growth, with a 12.6% year-over-year rise. Other cities, including Virginia Beach, VA (+10.9%), Louisville, KY (+10%), Baltimore (+10%), and Buffalo, NY (+9.4%), bucked the national trend with notable increases. These markets may reflect localized supply shortages or unique economic conditions driving demand.
Outlook for 2025
“We’re kicking off 2025 in a renter’s market, with many renters finding that apartments cost less than a year ago — especially in the Sun Belt,” noted Redfin Senior Economist Sheharyar Bokhari. However, he cautioned that the downward trend in rents may not continue indefinitely. The pace of apartment construction is slowing, potentially stabilizing rents in the near future.
While rents declined in 2024, 2025 may see a more balanced market as construction levels normalize and demand adjusts. Renters in high-supply regions like the Sun Belt are likely to continue benefiting, but markets with fewer new developments or persistent demand may see rents plateau or even rise.
Conclusion
The decline in U.S. asking rents to 2022 levels marks a shift toward a more favorable market for renters, driven by increased housing supply and higher vacancy rates. The Sun Belt, with its robust housing development, has led the nation in rent reductions, offering relief to tenants in regions like Austin, Tampa, and Jacksonville. As construction slows, 2025 could bring a stabilization of rents, but for now, renters across the country have reason to breathe a sigh of relief.
