The median U.S. asking rent declined 0.6% year over year to $1,610 in March, while increasing 0.4% month over month. This marks the 13th consecutive month with year-over-year rent changes under 1%, keeping rates below the 2022 peak of $1,705, according to Redfin.
Austin recorded the steepest annual decline among the 44 largest U.S. metros, with rents falling 11% to $1,420—$379 below its previous high. San Diego followed with a 10% drop, while Portland and Minneapolis both saw declines of 8%, and Raleigh rents fell 7%. Texas’ rapid building during the pandemic contributed to the current oversupply driving prices down.
Conversely, Cincinnati saw rents climb 12%, the highest among all metros, followed by Providence (11%), Cleveland (11%), Washington, D.C. (9%) and Baltimore (8%). Redfin noted that while Cincinnati has added new apartments, supply still lags behind demand, especially in higher-end units.
By apartment size, rents dropped 1% for studios and one-bedrooms, 0.5% for two-bedrooms, and 0.4% for three-bedrooms. Despite the recent declines, demand remains high due to the cost of homebuying, which limits further decreases.
Redfin also warns that new tariffs could drive rents higher by increasing both construction costs and rental demand, especially as economic uncertainty steers potential buyers toward renting.
