According to Apartments.com, the national year-over-year asking rent growth slowed down to 1.0% in December 2024, compared to 1.1% at the end of September that same year. This follows a trend of steady growth around 1% since mid-2023, after a sharp decline in rent increases during 2021 and 2022.
The average national rent per unit for the year was $1729, up from $1712 at the end of last year. However, there was a decrease of -0.4% quarter-over-quarter for Q4 – marking two consecutive quarters with falling rents – while vacancy rates remained stable at an even rate of eight percent.
In terms of absorption and supply additions during Q4 specifically: there were approximately113200 units absorbed by renters (the second consecutive quarter with easing), while new supply additions numbered133300 units (once again surpassing absorption levels). Despite this ongoing trend since late-2018 where more apartments are being built than rented out each quarter; Apartments.com notes that this gap between demand and supply has narrowed significantly over time indicating more balanced market conditions overall.
For all four quarters combined throughout full-year twenty-twenty-four however; total absorption reached556800 units which is actually up seventy percent from what it was back in twenty-twenty-three!
When looking specifically within top fifty markets nationwide though; Detroit ended on top with strongest annual asking rent growth reaching three-point-two-percent! Meanwhile Kansas City came close behind ranking second place nationally also showing strong results as well coming-in third-place Cleveland followed closely behind them both too posting solid numbers respectively too! On other hand Austin saw biggest drop off here experiencing negative four-point-eight-percent change annually meanwhile Denver San Antonio Jacksonville Phoenix did somewhat better comparatively speaking but still not great either unfortunately…
A recent Yardi Matrix report released just before holidays predicted these trends will continue going forward stating “Continuing record levels of new multifamily supply are expected to cap rent growth in markets that experienced rapid expansion during the pandemic.” The report went on to specifically mention cities like Austin, Phoenix, Charlotte and Atlanta – all which have been adding units at unprecedented rates over past few years – are forecasted see rents continue stagnating or even declining over next two years as more new apartments gradually get absorbed by demand.
