The national median asking rent fell to $1,667 in February, marking a four-year low and the 30th consecutive month of year-over-year declines, according to new data released by Realtor.com.
Driven by a prolonged boom in multifamily construction and typical seasonal winter softness, the national median asking rent dropped $29, or 1.7%, compared to a year ago, the Realtor.com analysis found. However, the degree of relief is highly localized.
Sun Belt renters in cities like Austin, Texas, and Birmingham, Ala., are seeing deep discounts from pandemic-era peaks. Meanwhile, markets like Virginia Beach, Va., and San Jose, Calif., are bucking the national trend, with tightening vacancy rates pushing rents close to new all-time highs.
The rent declines were observed across all unit sizes, according to the report. The median asking rent for a two-bedroom unit dropped 1.9% on the year to $1,844. One-bedroom units slipped 1.5% to $1,548 and studio apartments fell 0.4% to $1,393. Despite these drops, studio, one-bedroom, and two-bedroom units still remain 8.9%, 12.3% and 15.9% higher than their respective levels from six years ago.
At the metro level, median asking rents across all 50 of the largest U.S. markets are currently below their local peaks, the report noted. But the story varies dramatically depending on the region. The deepest cumulative rent relief has been concentrated in Sun Belt and Southern markets, where new apartment construction has tipped the supply-demand balance in favor of renters.
According to Realtor.com, 15 markets saw median asking rents fall at least 10% below their pandemic-era peaks. Austin leads the nation with rents 18.2% below their September 2022 peak, translating to a $302 discount per month. Birmingham follows with a 17.1% drop from its peak, offering renters $232 in monthly savings, and Memphis, Tenn., sits 16.1% below its peak.
Despite the sustained downward trend bringing national median rents 5.1% below their August 2022 peak, affordability remains an ongoing challenge. National rents are still $207, or 14.2%, higher than they were prior to the pandemic in February 2020, Realtor.com data shows.
