Last month, rent prices held steady, barely moving in either direction. And while the market stayed calm in July, the first ripples of change could be felt, especially in certain markets.
July saw a continued surge in interest for new apartments, reaching its highest point since late 2021. Even though the pandemic spurred a building boom, leading to more available apartments, the high demand is quickly closing the supply-demand gap, which in turn is expected to push prices up.
Building has slowed significantly in recent years, with the number of new apartments expected to decrease by 40 percent as we head into 2025. This slowdown means the vacancy rate has leveled off, halting the upward trend that began after 2021.
For the past two quarters of 2024, the vacancy rate has remained steady at 7.8 percent, marking the first time in almost three years it hasn’t increased, according to a report by Jay Lybik, the National Director of Multifamily Analytics at Apartments.com.
Will Rent Prices Rise as the Sun Sets on 2024?
With higher demand comes higher prices, and July reflected this. Nationally, we saw an increase of 1.2% in asking rents. Mid-priced apartments saw a slightly higher increase at 1.5 percent, while luxury apartments rose the least at 0.2 percent. However, as in months past, it all depends on where you live.
For renters in the Sun Belt, rent prices continue to fall, down about -1.3 percent. On the flip side, renters in the Midwest and Northeast saw rent prices climb 2.5 percent.
Cities with the Biggest Rent Increases
In June, rent prices didn’t change much, with the biggest increase of 0.8 percent taking place in Saint Louis, Missouri. In July, Louisville, Kentucky saw rent prices 4.3 percent higher than last year, topping the list for cities with the largest rent increase.
However, the most surprising city on this list is San Jose, California. This is because last year, San Jose was seeing falling rent prices and low demand. Today, it’s once again a hot market with rent prices increasing by 3.4 percent.
And while it didn’t make the top five, another Bay Area city, San Francisco, is also seeing an increase in rent prices. Rent in San Francisco is currently 2.0 percent higher than it was last year.
In July 2024, these five cities saw the biggest rent increases:
- Louisville, KY (+4.3%)
- Washington DC (+3.8%)
- Cleveland, OH (+3.6%)
- San Jose, CA (+3.4%)
- Richmond, VA (+3.4%)
Cities with the Biggest Rent Declines
In May and June, Austin saw the biggest decline in rent prices, falling more than 5 percent year-over-year. July saw much of the same, with Austin once again topping the cities with the biggest drop in rent prices.
Like Austin, Raleigh has a high vacancy rate, sitting at 12.4 percent. This is mostly due to a rise in newly built apartment buildings coming available. Raleigh had one of the highest rates of construction during the pandemic-era building boom. And even though demand is higher, the high vacancy rate persists, driving rent prices down.
In July 2024, these five cities saw the biggest rent declines:
- Austin, TX (-5.1%)
- Raleigh, NC (-2.8%)
- Jacksonville, FL (-2.6%)
- Phoenix, AZ (-1.9%)
- Atlanta, GA (-1.9%)
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:
|
City |
Current Average Rent |
Last Month’s Average Rent |
Year-Over-Year Difference |
|
$2,366 |
$2,338 |
+5.9% |
|
|
$1,572 |
$1,572 |
-1.2% |
|
|
$1,438 |
$1,440 |
-3.6% |
|
|
$3,446 |
$3,442 |
+2.7% |
|
|
$1,591 |
$1,592 |
+0.7% |
|
|
$2,707 |
$2,717 |
+1.3% |
|
|
$1,776 |
$1,781 |
+2.7% |
|
|
$1,440 |
$1,438 |
-1.3% |
|
|
$1,844 |
$1,843 |
+2.9% |
|
|
$1,056 |
$1,055 |
+2.5% |
|
|
$1,313 |
$1,308 |
-0.3% |
|
|
$1,105 |
$1,108 |
+2.8% |
|
|
$1,378 |
$1,376 |
-0.5% |
|
|
$1,692 |
$1,698 |
+0.2% |
|
|
$2,129 |
$2,132 |
-0.8% |
|
|
$1,239 |
$1,248 |
-0.9% |
|
|
$3,591 |
$3,568 |
+2.5% |
|
|
$1,665 |
$1,672 |
+0.6% |
|
|
$1,171 |
$1,167 |
+1.3% |
|
|
$1,072 |
$1,067 |
+2.5% |
|
|
$2,895 |
$2,846 |
-0.4% |
|
|
$1,270 |
$1,277 |
-2.3% |
|
|
$3,039 |
$3,034 |
+2.7% |
|
|
$1,144 |
$1,147 |
+2.1% |
|
|
$1,255 |
$1,256 |
-0.1% |
|
|
$1,745 |
$1,746 |
+1.3% |
|
|
$2,119 |
$2,125 |
+0.2% |
|
|
$1,392 |
$1,394 |
+3.2% |
|
|
$2,075 |
$2,078 |
+2.5% |
|
|
$1,128 |
$1,119 |
+2.8% |
|
|
$1,339 |
$1,339 |
+1.1% |
|
|
$1,644 |
$1,648 |
+0.8% |
|
|
$3,805 |
$3,796 |
+3.2% |
|
|
$1,556 |
$1,566 |
+0.5% |
|
|
$1,694 |
$1,699 |
+1.1% |
|
|
$1,309 |
$1,308 |
-1.4% |
|
|
$1,308 |
$1,310 |
+3.1% |
|
|
$1,495 |
$1,497 |
+1.1% |
|
|
$2,339 |
$2,338 |
+0.8% |
|
|
$1,351 |
$1,359 |
-2.8% |
|
|
$1,356 |
$1,354 |
+4.5% |
|
|
$1,515 |
$1,513 |
+1.5% |
|
|
$1,069 |
$1,069 |
+0.8% |
|
|
$1,091 |
$1,090 |
-0.8% |
|
|
$2,293 |
$2,296 |
-0.5% |
|
|
$2,849 |
$2,834 |
+2.1% |
|
|
$2,554 |
$2,554 |
+4% |
|
|
$2,035 |
$2,037 |
+2% |
|
|
$1,599 |
$1,609 |
-0.1% |
|
|
$2,272 |
$2,271 |
+1.3% |
How Current Rent Prices Impact Renters
Nearly 60 percent of all moves take place in the summer, between May and August. If you’re one of the millions on the move this summer, knowing what to expect as you search can help you determine your budget. Knowing what rent prices are doing is also important if you want to renew your current lease or negotiate a new rent price.
Learn more about what you can expect by comparing the rent prices from this report to those from May and June 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.
FAQs
What is the average rent in the US right now?
According to Apartments.com, the average rent in the United States is currently $1,536 per month.
Which US states had the largest rent increases in 2024?
The states with the largest rent increases compared to last year are Wyoming, West Virginia, and Vermont.
Are rents rising or falling in the US?
Overall, rent prices in the US have increased slightly year-over-year, up 0.8%.
Which states have the cheapest rent?
Right now, the states with the lowest rent prices are Oklahoma, West Virginia, and Arkansas.
