Rents Fall for the 15th Month in a Row—and the South Becomes Even Friendlier to Renters

Here’s some good news for renters: Rent prices are still moving in the right direction—and have fallen for the 15th consecutive month.

The median asking rent in the 50 largest metros registered at $1,720, down $23 from last month and $40 from its August 2022 peak, notes Realtor.com economist Jiayi Xu in the October 2024 Rental Report.

While the drops have been modest—this month saw just a $9 dip year over year—it’s a welcome relief for anyone searching for a place to call home.

Still, even with this downward trend, rents remain higher than they were before the COVID-19 pandemic. Compared with October 2019, the median asking rent is $272 more, showing just how much the rental market has transformed over the past few years.

Yet that might change due to a boon in housing stock.

Why rents initially went up

Chalk the general rise in rents over the past few years up to inflation. Over the past five years, the real estate inflationary rate has grown by 18.8%. While that’s slightly lower than the overall consumer price inflation rate of 22.7%, it’s still enough to keep rents elevated.

And while rents are up, their increases have been relatively mild compared with for-sale homes. In the same five-year period, the median price per square foot of for-sale home listings surged by a whopping 50.5%.

And now, rental prices are starting to cool further, especially for smaller apartments. Studio and one-bedroom units saw the largest price decreases, with year-over-year declines of 1.2% and 0.9%, respectively.

What’s behind this shift? A much-needed increase in housing supply.

More housing stock is cooling the market

The rental market is finally reaping the benefits of construction projects that began during the pandemic.

“Regionally, all four areas saw a significant increase in multifamily completions in 2024, driven by surges in new starts from prior years,” says Xu.

Between January and September 2024, the average annualized rate of multifamily home completions reached 606,000 units, a 36.1% increase over the same period in 2023.

This growth is particularly evident in the South, where multifamily housing completions have skyrocketed.

The region saw a 49.1% increase in home completions between January and September 2024 compared with the same period in 2023, and an eye-popping 76.6% increase compared with pre-pandemic levels in 2019.

The Sun Belt adds the most rentals

During the pandemic, remote workers flocked to Sun Belt cities, driving up demand and rental prices.

Between February 2021 and February 2022, these metros saw average rent increases of 22.5%. Developers quickly responded, and between January and September 2023 alone, more than 823,000 homes were completed in the region.

Now, the surge in new housing stock in the South is helping to soften the competitive rental market, particularly in popular cities like Miami, Austin, TX, and Memphis, TN. Rents fell there by 1.3%, 4.2%, and 5.4%, respectively.

While rents remain higher than pre-pandemic levels, the added supply is beginning to ease pressure on renters, making these cities more accessible in general.

“The faster growth of rental completions in the South has boosted rental supplies and dampened the typical rental price of homes available in October compared to one year ago,” says Xu.

A rise in rentals to choose from is not limited to the South.

“The South witnessed the most significant rise in new completions between January and September 2024, with a year-over-year growth rate of 49.1%, followed by the Midwest (44.9%), West (23.9%), and Northeast (7.4%),” says Xu.

Below, check out the 10 metros in the U.S. where rents have fallen the most.

Denver, CO

YoY change (0-2 bedrooms): -5.6%
Median rent (0-2 bedrooms): $1,836

Memphis, TN 

YoY change (0-2 bedrooms): -5.4%
Median rent (0-2 bedrooms): $1,204

Nashville, TN

YoY change (0-2 bedrooms): -5.2%
Median rent (0-2 bedrooms): $1,556

Dallas, TX

YoY change (0-2 bedrooms): -4.3%
Median rent (0-2 bedrooms): $1,462

Austin, TX

YoY change (0-2 bedrooms): -4.2%
Median rent (0-2 bedrooms): $1,495

Chicago,IL

YoY change (0-2 bedrooms): -4.1%
Median rent (0-2 bedrooms): $1,780

San Antonio, TX

YoY change (0-2 bedrooms): -4.1%
Median rent (0-2 bedrooms): $1,250

Phoenix, AZ

YoY change (0-2 bedrooms): -4.5%
Median rent (0-2 bedrooms): $1,512

Charlotte, NC 

YoY change (0-2 bedrooms): -3.8%
Median rent (0-2 bedrooms): $1,520

Atlanta, GA

YoY change (0-2 bedrooms): -3.4%
Median rent (0-2 bedrooms): $1,583