Across the country, rents fell in 50 of the largest metropolitan areas in February, according to a recent report.
The median asking rent in 50 of the largest metro areas in the United States fell to $1,708 in February, down $4 from January and $50 from its peak in August 2022, per a new report from Realtor.com.
Across size categories, the median asking rent fell most for studio units to $1,426. That is 1.5% or $21 less than the asking rent in February 2023. Two-bedroom units saw a $15 or 0.8% year-over-year decrease in rent prices. Rents for one-bedroom units were also down $6 or 0.4% year-over-year last month.
"We're seeing a lot of new [apartment] construction in the Southern region. More construction means more new supply, which means lower prices," Realtor.com economist Jiayi Xu said, as quoted by the New York Post. "That means [tenants] have more money for other parts of their lives, not just housing costs."
Cities Where Rent Prices Are Falling the Most
Of all metropolitan areas, the city of Memphis in Tennessee experienced the largest price cuts in February. Rents decrease 5% year over year to a median asking price of $1,251 a month.
Memphis was followed by the Austin-Round Rock metro in Texas where rents dropped by 4.4% to $1,530. The dip may be attributed to the influx of new apartments coming online, which forces landlords in the area to compete for tenants, the Post noted, citing Austin-based real estate broker Brad Pauly.
Where Rents Fell Most in February 2024
1. Memphis, Tennesee
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Median price drop year-over-year: -5%
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Median rental price in February: $1,251
2. Austin, Texas
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Median price drop year-over-year: -4.40%
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Median rental price in February: $1,530
3. Atlanta, Georgia
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Median price drop year-over-year: -4.10%
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Median rental price in February: $1,631
4. Nashville, Tennessee
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Median price drop year-over-year: -4.10%
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Median rental price in February: $1,589
5. St. Louis, Missouri
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Median price drop year-over-year: -3.90%
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Median rental price in February: $1,300
6. Phoenix, Arizona
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Median price drop year-over-year: -3.80%
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Median rental price in February: $1,543
7. Miami, Florida
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Median price drop year-over-year: -3.40%
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Median rental price in February: $2,373
8. Raleigh, North Carolina
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Median price drop year-over-year: -3.00%
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Median rental price in February: $1,507
9. Orlando, Florida
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Median price drop year-over-year: -2.70%
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Median rental price in February: $1,675
10. Jacksonville, Florida
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Median price drop year-over-year: -2.60%
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Median rental price in February: $1,518
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