Apartments.com Rent Report for April 2024: A Tale of Two Markets

While not as dramatic as the Dickens novel, browsing through the Apartments.com Monthly Rent Report for April 2024 brings the classic tale to mind, mostly because of the contrast between the luxury and mid-priced markets. For renters looking for a luxury apartment, April was a good month. Rent prices for luxury apartments fell another -0.2 percent as supply continued to outpace demand.

On the flip side, renters searching for mid-priced apartments probably found higher rent prices and less availability. Rent for mid-priced apartments has started to moderately increase, now 1.4 percent higher than they were last year. Because there’s stronger demand for mid-priced apartments and there aren’t as many new mid-tier apartments coming available, rent prices could rise more before the end of the year.

Nationally, there is some stabilization in the rental market. The national vacancy rate is still rising, but at a much slower pace, up to 7.8 percent from 7.7 percent at the end of 2023. However, the vacancy rate varies by location. High vacancy rates persist in Austin, Texas and Jacksonville, Florida. Both cities currently have a vacancy rate of 14.3 percent, which is nearly twice the national average.

Rent Prices Are Still Falling in the South

For renters considering a move to the Sun Belt, rent prices are continuing the downward trend, with cities like Austin and Atlanta experiencing the largest year-over-year drops. This means renters may find lower rates in these previously hot markets. Nationally, rent prices increased slightly in April, up by 0.8 percent. However, the Sun Belt is still experiencing a downward trend, falling -1.4 percent year over year.

While the Midwest has been leading the way in terms of higher rent prices, the Northeast is closing the gap. Rent prices in the Midwest climbed 2.5 percent, while the Northeast was only slightly behind at 2.1 percent. Almost all of the top 10 markets that saw year-over-year rent increases were in the Midwest or Northeast.

Cities with the Biggest Rent Increases

In March, the city with the biggest rent increase was Detroit, Michigan, the only city to see rent prices increase by a full percentage point. In April, Detroit fell out of the top five, but it still saw rent prices increase by 1.7 percent. Rent prices in Louisville, Kentucky have seen the largest year-over-year rent increases, up 3.4 percent. Rent prices are 2.8 percent higher than last year in Northern New Jersey, and 2.4 percent higher in Cleveland, Ohio.

April saw more of the same, with the Midwest having five of the top 10 cities with biggest rent increases. These cities included Columbus, Ohio (+1.8%), Kansas City, Missouri (+1.9%), and Chicago, Illinois (+1.9%).

Here are the five cities with the biggest rent increases for April 2024:

1. San Jose, CA (+2.4%)
2. Louisville, KY (+2.3%)
3. Seattle, WA (+2.1%)
4. Milwaukee, WI (+2.1%)
5. San Francisco, CA (+2.1%)

Cities with the Biggest Rent Declines

In April, rent prices continued to tumble in Austin, Texas, where current rent prices have dropped -5.7 percent year over year. The next largest year-over-year drop was in Jacksonville, Florida, by -3.6 percent. These areas still have many apartment communities under construction, with 70 percent of those communities in the luxury market, where demand is the weakest.

However, the changes in April were much smaller than we’ve seen in previous months, another example of the rental market stabilizing. Of the top 50 markets, only two saw rent decreases: San Antonio and Austin. The other cities on this list saw flat or slightly higher rent prices in April.

1. San Antonio, TX (-0.3%)
2. Austin, TX (-0.3%)
3. Jacksonville, FL (+0.1%)
4. Tucson, AZ (+0.1%)
5. Oklahoma City, OK (+0.4%)

Looking Ahead to the Second Half of 2024

Rent prices have stabilized across much of the US, but a resurgence in rent increases could occur in the latter half of the year, based on CoStar data. The Midwest and Northeast regions may lead this upward trend in rent prices, and mid-priced apartments will be instrumental in rent growth. In the Sun Belt states, there’s a potential pivot from the recent trend of declining rents, although this won’t hold true for all of the Southern states.

The stabilizing vacancy rates, coupled with a rising demand for apartments, could fuel rent hikes toward the end of 2024. However, much depends on the performance of the economy. A downturn could lead to less apartment demand, reversing the current trend and pushing the vacancy rate higher. If that happens, rent prices could start to fall once again.

Current Rent Prices Across the US

Want to see what rents are doing where you live? Here’s a look at current rent prices in cities across the country: 

How Current Rent Prices Impact Renters

Since most of the new apartments nearing completion are luxury apartments, and there’s lower demand for these, renters considering a luxury apartment might want to make a move soon before rent prices begin to increase. This is especially true in Sun Belt cities like Austin and Jacksonville, where renters can find more affordable options and rent specials due to the high vacancy rate.

Renters looking for a mid-priced apartment in the Midwest or Northeast may notice less availability and higher rent prices — but only slightly higher, thanks to a leveling off of rental prices across the US. Since rent prices are expected to increase later in the year, renters looking to move should consider the location, the availability, and the overall rent changes in the area. Compare the rent prices from this report to those from March and February to determine the overall trend and visit the US Rent Trends page to view the most current rent prices available across the US based on CoStar data.