“Renters have the upper hand—at least for now—because there are a near-record number of apartments coming on the market that landlords are scrambling to lease,” Redfin senior economist Sheharyar Bokhari wrote in the report.
“In certain parts of the country, renters may be able to negotiate discounted rent, flexible leases or free parking. But these perks may be short-lived given that apartment construction is expected to slow and rental demand is expected to remain strong.”
Two-bedroom units posted the sharpest decline, with the median asking rent falling 1.5% year over year to $1,713. Rents for smaller studios and one-bedroom apartments held at $1,499, while three-bedroom or larger units averaged $2,014, relatively unchanged from a year ago.
Although rental supply is currently exceeding demand, Redfin notes that the multifamily building boom is starting to taper, with permits for new apartment construction now returning to pre-pandemic levels. That shift could narrow the gap between supply and demand over the coming year.
For those considering homeownership, affordability remains a major challenge. Veros Real Estate Solutions projects a modest 2.2% average national home price appreciation over the next 12 months, as elevated borrowing costs and high prices continue to deter both buyers and sellers.