The big story in September was the vacancy rate. It fell 10 basis points to 7.8%. This is significant because it’s the first time the vacancy rate dropped since 2021.
So, what caused the vacancy rate to fall in September? There’s more stability in the rental market right now, with building slowing down and fewer apartments on the market, combined with a rise in demand. As a result, the vacancy rate is declining and overall rent prices are stabilizing, up slightly by 1.1% at the end of September.
Continued Relief in the Sun Belt
Overall, the average rent price in the United States is $1,556 per month, which is an increase of 0.9% since last year. However, rent prices in the Sun Belt continue to fall. Rent prices in Austin are down -4.7% compared to last year, while Raleigh has seen rent prices fall -2.9%.
In stark contrast to the Sun Belt, the Midwest and Northeast have seen rent prices climb much higher than the national average. Of the top 50 markets nationwide, Washington, DC saw the biggest jump in rent prices, up 3.5% year-over-year. Rent prices in Richmond, Virginia, and Detroit, Michigan were right behind DC with an increase of 3.4% year-over-year.
The Great (Vacancy) Divide
The overall vacancy rate increasing for the first time in four years is just part of the story. When you look at the comparison between the vacancy rate in the northeast compared to that of the Sun Belt, it truly is an impressive series of peaks and valleys.
For example, New York City has the lowest vacancy rate in the country at 2.8%. Compare that to the city with the highest vacancy rate, Austin, Texas, which currently has a vacancy rate of 15.1%.
The vacancy rate also varies by property type. The luxury market continues to struggle, with a vacancy rate of 11.1%. Compare that to mid-priced apartments, where the vacancy rate is 7.1%, below the national average.
Cities with the Biggest Rent Increases
In August, Erie, Pennsylvania topped the list for biggest rent increase at a modest 1%. It was followed by Duluth, Minnesota and Green Bay, Wisconsin, both with an increase of 0.9%. Four of the five cities with the largest increases in August were in the Northeast and the Midwest.
September saw more of the same, with Northeastern and Midwestern cities experiencing higher rent prices overall.
For September 2024, here are the cities with biggest rent increases:
- Washington, DC (+3.5%)
- Richmond, VA (+3.4%)
- Detroit, MI (+3.4%)
- Cleveland, OH (+3.3%)
- Louisville, KY (+3.3%)
Cities with the Biggest Rent Declines
In August, Austin, Texas saw the biggest decline in rent prices, falling -1.2%. Things didn’t change much in September, with Austin still topping the list for the largest decrease in rent prices. Like last month, most of the cities in the top five are in the Sun Belt. The exception in September is Denver, with rent prices falling -2.2%.
For September 2024, here are the five cities with the biggest rent declines:
- Austin, TX (-4.7%)
- Raleigh, NC (-2.9%)
- Jacksonville, FL (-2.5%)
- Phoenix, AZ (-2.2%)
- Atlanta, GA (-1.9%)
Current Rent Prices Across the US
|
City |
Current Average Rent |
Last Month’s Average Rent |
Year-Over-Year Difference |
|
$2,360 |
$2,371 |
+5% |
|
|
$1,586 |
$1,602 |
-1% |
|
|
$1,451 |
$1,467 |
-3.7% |
|
|
$3,479 |
$3,487 |
+3.2% |
|
|
$1,610 |
$1,605 |
+0.6% |
|
|
$2,775 |
$2,738 |
+1.3% |
|
|
$1,776 |
$1,795 |
+1.3% |
|
|
$1,462 |
$1,471 |
-0.9% |
|
|
$1,849 |
$1,858 |
+2.3% |
|
|
$1,074 |
$1,076 |
+2.1% |
|
|
$1,328 |
$1,343 |
-1.3% |
|
|
$1,110 |
$1,115 |
+1.6% |
|
|
$1,397 |
$1,403 |
-0.3% |
|
|
$1,686 |
$1,713 |
-1.6% |
|
|
$2,203 |
$2,167 |
-0.4% |
|
|
$1,268 |
$1,277 |
+0.1% |
|
|
$3,647 |
$3,686 |
+3% |
|
|
$1,674 |
$1,711 |
+0.9% |
|
|
$1,192 |
$1,194 |
+1% |
|
|
$1,092 |
$1,095 |
+2.6% |
|
|
$2,923 |
$2,958 |
-1.5% |
|
|
$1,306 |
$1,307 |
-0.8% |
|
|
$3,126 |
$3,139 |
+2.6% |
|
|
$1,159 |
$1,168 |
+2.1% |
|
|
$1,293 |
$1,287 |
0% |
|
|
$1,755 |
$1,755 |
+1% |
|
|
$2,161 |
$2,159 |
+0.9% |
|
|
$1,411 |
$1,413 |
+2.1% |
|
|
$2,118 |
$2,116 |
+2.4% |
|
|
$1,135 |
$1,139 |
+1.9% |
|
|
$1,351 |
$1,356 |
0% |
|
|
$1,668 |
$1,678 |
0% |
|
|
$3,871 |
$3,864 |
+2.2% |
|
|
$1,575 |
$1,582 |
-0.2% |
|
|
$1,705 |
$1,715 |
+0.4% |
|
|
$1,336 |
$1,346 |
-0.3% |
|
|
$1,313 |
$1,323 |
+2.3% |
|
|
$1,515 |
$1,520 |
+1.3% |
|
|
$2,380 |
$2,378 |
+0.7% |
|
|
$1,358 |
$1,377 |
-2.8% |
|
|
$1,359 |
$1,367 |
+2.4% |
|
|
$1,548 |
$1,545 |
+2.7% |
|
|
$1,090 |
$1,089 |
+2.2% |
|
|
$1,100 |
$1,113 |
-1.6% |
|
|
$2,338 |
$2,328 |
+1.4% |
|
|
$2,888 |
$2,894 |
+1.4% |
|
|
$2,577 |
$2,579 |
+3% |
|
|
$2,052 |
$2,056 |
+1.7% |
|
|
$1,622 |
$1,620 |
-0.2% |
|
|
$2,298 |
$2,293 |
+2.7% |
How Current Rent Prices Impact Renters
Overall, the vacancy rate is on the decline. If you are looking for an apartment in the Midwest or Northeast, a lower vacancy rate could mean higher rent prices. If you’re searching in the Sun Belt, especially in a place where the vacancy rate is still high, rent prices will likely remain stable or even decline slightly. However, with building slowing down as projects are completed, the vacancy rate may drop early next year, which could lead to higher prices in this region, as well.
Learn more about what you can expect by comparing the rent prices from this report to those from July and August 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 $1,557 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, Virginia, and Kansas.
Are rents rising or falling in the US?
Overall, rent prices in the US have increased slightly year-over-year, up 1%.
Which states have the cheapest rent?
Right now, the states with the lowest rent prices are Oklahoma, West Virginia, and North Dakota.
