Asking rents fell in several cities last year and nationally to the lowest level in nearly three years, according to Redfin.

The median U.S. asking rent in December declined to $1,594, down 0.3% year over year and the lowest level since March 2022.

Median asking rents dropped 6.2% since the peak of $1,700 in August 2022, Redfin reported.

Rents have been falling because of increased supply that has left apartment owners with more vacancies.

For example, the vacancy rate for buildings with five or more units rose to 8%, the highest since early 2021, according to Redfin.

“We’re kicking off 2025 in a renter’s market, with many renters finding that apartments cost less than a year ago—especially in the Sun Belt,” Redfin Senior Economist Sheharyar Bokhari said.

Among 44 metros analyzed by Redfin, rents fell the most annually in Austin, Texas (-16.3%); Tampa (-10.4%) and Jacksonville, Florida (-6.7%); Nashville (-6.3%) and New York (-4.6%). Sun Belt cities saw the greatest drops because of increased building. 

Some cities did see gains. Rents rose most in Providence, Rhode Island (12.6%), Virginia Beach, Virginia (10.9%), Louisville, Kentucky (10%), Baltimore (10%) and Buffalo, New York (9.4%).

Rents may “not have much further to fall this year given that apartment construction has begun to slow,” Bokhari said.