New data shows median asking rent fell in June, with supply outpacing demand in many major markets
Rents across the US have ticked down for the fourth consecutive month as new apartment supply continues to outpace demand, even as high mortgage rates keep many would-be buyers in the rental market.
The median national asking rent dipped 0.5% year over year to $1,642 in June, marking a steady decline from the same period in 2024, according to a new report from Redfin. While still just $63 below the all-time high of $1,705 set in August 2022, rents have remained relatively stable over the past year, fluctuating by less than 1% in either direction since March.
The decline is largely driven by a construction surge that has left many markets with an excess of vacant units. Apartment construction is currently near a 50-year high, and a separate Redfin analysis found that fewer than half of newly completed apartment units at the end of 2024 were leased within three months, giving renters more room to negotiate.
“Renters have the upper hand—at least for now—because there are a near-record number of apartments coming on the market that landlords are scrambling to lease,” Redfin senior economist Sheharyar Bokhari wrote in the report.
“In certain parts of the country, renters may be able to negotiate discounted rent, flexible leases or free parking. But these perks may be short-lived given that apartment construction is expected to slow and rental demand is expected to remain strong.”
Two-bedroom units posted the sharpest decline, with the median asking rent falling 1.5% year over year to $1,713. Rents for smaller studios and one-bedroom apartments held at $1,499, while three-bedroom or larger units averaged $2,014, relatively unchanged from a year ago.
Although rental supply is currently exceeding demand, Redfin notes that the multifamily building boom is starting to taper, with permits for new apartment construction now returning to pre-pandemic levels. That shift could narrow the gap between supply and demand over the coming year.
For those considering homeownership, affordability remains a major challenge. Veros Real Estate Solutions projects a modest 2.2% average national home price appreciation over the next 12 months, as elevated borrowing costs and high prices continue to deter both buyers and sellers.
“The US housing market continues to face headwinds in mid-2025 as elevated mortgage rates, stubbornly high home prices, and rising economic uncertainty create a difficult environment for buyers and sellers alike,” Veros wrote. “Until mortgage rates decline meaningfully or incomes catch up with housing costs, affordability will remain a central issue.”
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