by Calculated Risk on 9/11/2024 09:44:00 AM

Today, in the Real Estate Newsletter: Asking Rents Mostly Unchanged Year-over-year

Brief excerpt:

Tracking rents is important for understanding the dynamics of the housing market. For example, the sharp increase in rents helped me deduce that there was a surge in household formation in 2021 (See from September 2021: Household Formation Drives Housing Demand). Now that household formation has slowed, and multi-family completions have increased, rents are under pressure.

Welcome to the September 2024 Apartment List National Rent Report. Our model captured an average rent decrease of -0.1% in August, and today the nationwide median rent stands at $1,412. This signals the end of the rental market’s annual busy season, as well as the second consecutive summer of modest rent growth, as the market remains sluggish thanks to a windfall of new supply. If historical trends hold, rents will continue to fall on a monthly basis for the remainder of the year.

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Realtor.com: 12th Consecutive Month with Year-over-year Decline in Rents

In July 2024, the U.S. median rent continued to decline year over year for the 12th month in a row, down $12 (-0.7%) for 0-2 bedroom properties across the top 50 metros, faster than the rate of -0.4% seen in June 2024. The median asking rent was $1,741, down by $2 from last month, reflecting a similar seasonal trend as observed in the for-sale market.