During the pandemic, the national vacancy rate dropped to 4.8%, causing a surge in new construction to meet demand. But large construction projects can take years to complete. These new apartments are coming available just as demand has fallen, leading to more available apartments than there are renters to fill them.
The vacancy rate has risen to 6.6% and is expected to climb even higher, potentially up to 8%, according to CoStar reports. This would mark the sharpest increase in two decades.
While the national vacancy rate is up overall, it varies by location. For example, far fewer construction projects were started in the Midwest, so the vacancy rate has held steady and rent prices are climbing. In the South, however, the opposite is true.
Higher vacancy rates can often lead to lower rent prices, special offers, and attractive move-in deals. Here are the top 10 cities where the vacancy rate was highest in Q1 2024, and what that means for renters.
1. Austin, TX
With its exciting nightlife, growing tech industry, and famous music scene, Austin is a fun-loving city with plenty to offer. The city’s blend of culture and Western flair make it a one-of-a-kind city that attracts visitors from all over. Luckily, living in Austin is becoming more affordable.
Due to a variety of construction projects that were started during the pandemic and are now at or nearing completion, Austin has the highest vacancy rate than any other city in the country at 14.1%. And while the vacancy rate is up, rent prices are trending down.
Rent has decreased by 7.40% in the last year, saving renters an average of about $106 per month. Currently, the average rent in Austin is $1,439.
2. Memphis, TN
The rich tapestry of culture, history, and entertainment in Memphis attracts visitors from all corners of the globe. As the largest city on the Mississippi River, Memphis holds a special place in the heart of the Southeastern region.
Renowned for its pivotal contributions to the music industry, including blues, soul, and rock 'n' roll, the city is home to iconic attractions like Graceland, the former residence of Elvis Presley, Beale Street's lively nightlife, and Sun Studio, where legendary artists recorded groundbreaking music. Beyond its musical significance, Memphis plays a crucial role in American history, housing the National Civil Rights Museum at the Lorraine Motel, which offers profound insights into the civil rights movement.
Life in Memphis is punctuated by sultry evening air and riverfront parks. It’s also very affordable, with rent prices in Memphis sitting at just $987 per month, a whopping 34% below the national average. In fact, Memphis is one of the most affordable cities in the country.
3. Jacksonville, FL
If you’ve always dreamed of living at the beach where sun and surf frame your days, Jacksonville, Florida is the place to be. The city boasts 22 miles of stunning beaches, ideal for those seeking relaxation by the sea or engaging in water sports. Its extensive park system and nature and wildlife preserves invite outdoor enthusiasts to explore its lush landscapes. Jacksonville's eclectic museums, arts scene, and historic neighborhoods underscore its rich cultural tapestry.
Jacksonville is a large city with a strong economy, and while supply currently outstrips demand, the vacancy rate is expected to decline in 2024. That said, the average rent in Jacksonville is $1,276 per month, which is 15 percent below the national average.
4. Raleigh, NC
The capital of North Carolina, Raleigh is not only the largest city within the Research Triangle area—an important hub for technology and academia—but it also ranks as the tenth-most populous city in the Southeast. In addition to a strong economy, the city provides activities from shopping and dining to parks and museums. The city’s ideal location between the coast and the mountains provides those living in Raleigh with a variety of ways to enjoy the outdoors.
Raleigh currently has a vacancy rate of 13 percent, mostly due to record construction that’s nearly double the historical average. Rent in Raleigh averages $1,336 per month, which is 11% below the national average. Renters can score a variety of deals and specials in Raleigh ranging from reduced rent to a free month, making now a great time to move to this dynamic city.
5. Charlotte, NC
Known as the Queen City, Charlotte buzzes with excitement and energy. The city is a haven for sports enthusiasts, home to the NBA's Charlotte Hornets and the NFL's Carolina Panthers. Even motorsports fans will love living in Charlotte, which is home to the NASCAR Hall of Fame and the Charlotte Motor Speedway.
For those seeking arts and entertainment, Charlotte provides the Blumenthal Performing Arts Center and numerous art galleries. The city's burgeoning food scene is also exciting, combining traditional Southern cuisine with innovative dining concepts.
Charlotte currently has the fifth-highest vacancy rate in the US at 12.5%. This is due to record construction providing more than 30,000 new apartments in the city, outpacing demand. However, this imbalance is expected to ease in 2024.
Right now, the average rent in Charlotte is $1,415, which is -3.41% lower than last year and six percent lower than the national average. With a variety of apartment communities advertising rent deals and specials, renters moving to Charlotte could discover that their dream apartment is well within reach.
6. Atlanta, GA
The capital of Georgia, Atlanta is a very popular city, attracting renters with its eclectic food scene, strong job market, endless entertainment, and Southern charm. Atlanta offers an array of attractions ranging from world-famous tourist spots like the Georgia Aquarium and Centennial Park to hidden gems like the Atlanta Beltline and the Krog Street Market.
Those living in Atlanta can cheer on their favorite sports teams, like the Falcons, Hawks, and Braves. They can explore the High Museum of Art, take in a show at the famous Fox Theatre, or explore the great outdoors in parks known for festivals and events, such as Grant Park, Piedmont Park, and Candler Park.
Luckily, rent is trending down in Atlanta. The current average rent is $1,547, which is 5.57 percent lower than last year, Still, Atlanta rent prices are higher than the national average. With a vacancy rate of just over 12%, renters can still find a great deal on an apartment, especially when factoring in rent specials and discounts.
7. San Antonio, TX
If you want to live in Texas, consider renting in San Antonio. Between the history of the Alamo and the shopping and dining of Riverwalk, you’ll find an amazing city filled with legends, music, and cowboy boots. Beyond its history and natural beauty, San Antonio is known for its diverse population, culinary excellence—particularly its Tex-Mex cuisine—and a strong sense of community.
San Antonio is also seeing construction outpacing demand, and this trend is expected to continue into next year. This has driven the vacancy rate to 11.9%, with rent prices declining.
Currently, the average rent for an apartment in San Antonio is $1,076 per month. This is 28% lower than the national average, making it one of the more affordable cities in the US. Rent prices have fallen 3.26% in the last year.
8. Orlando, FL
As the heart of Florida, Orlando is more than theme parks and sunshine. Orlando is a city rich in culture, offering an array of museums, shopping, and outdoor adventures. The city is also a hub for business and innovation, home to a bustling downtown and one of the largest universities in the country, the University of Central Florida.
Beyond the economic and financial benefits, Orlando's natural beauty is a major reason people choose to live in the city. Orlando is home to picturesque lakes, natural reserves, parks, and green spaces, providing residents with countless opportunities to enjoy the outdoors.
Even though Orlando is one of the top-most searched cities on Apartments.com, it has a vacancy rate of 11.7%. This has caused rent prices to dip 3.3% since last year, with the average rent in Orlando currently at $1,551. High vacancy rates are especially apparent in the luxury market, with 90 percent of the apartment communities being built in this sector.
9. Salt Lake City, Utah
Ruggedly beautiful Salt Lake City is a gateway to some of the nation's most spectacular natural landscapes. Nestled in the valley of the Wasatch Range, it offers breathtaking views and an abundance of outdoor activities, from skiing and snowboarding in the nearby world-class resorts to hiking and biking in the summer months.
Salt Lake City, the only non-Southern city to make it on the list, sneaks in with its 11.5% vacancy rate, which is expected to rise throughout 2024 and into 2025. Rent prices are trending downward in Salt Lake City, with the current average rent of $1,383 being 2.13% lower than last year.
10. Nashville, TN
Living up to its moniker “Music City,” Nashville is the heartbeat of the country music industry. Home to the legendary Grand Ole Opry, the Country Music Hall of Fame, and countless clubs and bars, Nashville hums with the tunes of musical legends--past, present, and future.
The city’s history stretches beyond music, being home to such landmarks at the Hermitage, the historic home of President Andrew Jackson. When it comes to food, your tastebuds will sing with the array of options available, from traditional Southern comfort food to innovative cuisine.
If you’ve wondered what it would be like to live in Nashville, now might be a great time to experience all this dynamic city has to offer. With a vacancy rate of 11.5%, Nashville is experiencing a flood of new construction that began during the pandemic when demand was high.
Vacancies are more pronounced in the luxury market than in mid-priced apartments, where demand has held somewhat steady. Still, the average rent in Nashville is trending down, sitting at $1,594 per month. This is a drop of 4.05% from last year.
For the most part, Southern states saw the highest vacancy rates in Q1 2024. However, other cities are experiencing similar trends—for now. According to CoStar, vacancy rates should level off toward the end of the year. Before you move, be sure to research what’s happening in your area. If vacancies are high, rent prices might be lower, and it could be possible to find rent deals and specials to make moving even more affordable.
The information provided in this article is based on CoStar market reports for Q1 2024. Rent prices and vacancy rates fluctuate rapidly, so be sure to research current rent trends in your area.
