While many Americans cling to the hope that rental prices will finally cool, the harsh reality is that a perfect storm of persistent demand, tight vacancies, and shifting demographics continues to push the national median rent toward an unprecedented $2,000 per month, squeezing household budgets from coast to coast.
Key Takeaways
- As of Q3 2024, the national median rent in the US reached $1,986 per month, marking a 3.2% year-over-year increase driven by persistent demand in suburban markets.
- In 2023, average rent for a two-bedroom apartment in the US was $1,741, up 4.1% from 2022, with Midwest cities seeing the highest growth at 5.8%.
- San Francisco's median rent for one-bedroom units hit $2,970 in September 2024, a 1.8% increase YoY despite tech sector layoffs.
- National vacancy rates dropped to 6.6% in Q2 2024, tightening rental supply.
- US multifamily vacancy rate averaged 6.9% in 2023, down from 7.5% in 2022.
- In Sun Belt cities, vacancy rates fell to 5.8% in mid-2024 due to construction lag.
- In 2023, 42% of US renter households were millennials aged 25-34.
- Black Americans comprised 20.1% of renters in 2023, facing higher burdens.
- Households earning under $35k/year made up 28% of US renters in 2022.
- Institutional investors owned 22% of single-family rentals in 2023.
- Average US landlord owned 5.2 rental units in 2023 surveys.
- Mom-and-pop landlords controlled 70% of rental stock in 2024.
- New York City rents varied 45% between boroughs, Manhattan at $4,200 median.
- California statewide median rent $2,760 in 2024, 39% above national.
- Midwest rents averaged $1,389, lowest regionally with 2.1% growth.
Rents are rising nationally with high demand keeping suburban markets particularly tight.
Landlord and Property Owner Insights
- Institutional investors owned 22% of single-family rentals in 2023.
- Average US landlord owned 5.2 rental units in 2023 surveys.
- Mom-and-pop landlords controlled 70% of rental stock in 2024.
- Rental property cap rates averaged 5.8% nationally in Q3 2024.
- 28% of landlords raised rents by over 10% in 2023.
- Corporate landlords managed 15 million units by end-2023.
- Average multifamily property ROI was 7.2% in 2023 per NCREIF.
- 42% of small landlords (1-4 units) were aged 55+ in 2024.
- Eviction filings per 100 units averaged 4.2 nationally in 2023.
- Rental property insurance costs rose 12% YoY to $1,450 avg in 2024.
- 65% of landlords used property management software in 2023.
- Multifamily acquisition volume fell 45% to $87B in 2023.
- Average rent collection rate was 98.7% in Q2 2024 for large owners.
- 19% of landlords invested in energy-efficient upgrades in 2023.
- Institutional ownership in Sun Belt rentals hit 25% in 2024.
- Landlord net operating income grew 4.1% YoY to $12,500/unit in 2023.
- 37% of properties had turnover rates over 50% annually in 2023.
- Property tax burdens averaged 10% of rental revenue in 2024.
- Large REITs controlled 18% of apartment stock by 2023.
- Maintenance costs per unit rose to $7,200 annually in 2024.
- 52% of landlords offered flexible lease terms in 2023 surveys.
- Single-family rental investor returns averaged 6.9% IRR in 2023.
- 24% of landlords faced rent control regulations in 2024.
- Amenities spending per unit hit $2,100 in luxury multifamily 2023.
- Delinquency rates for rental mortgages were 0.9% in Q3 2024.
- 31% of small landlords planned to sell properties in 2024.
- Proptech adoption by landlords reached 68% for screening tools.
- Average holding period for rental investments was 8.7 years in 2023.
Landlord and Property Owner Insights Interpretation
The data paint a portrait of an American rental market where, despite mom-and-pop landlords holding the majority of units, institutional muscle is flexing for higher returns amidst rising costs, prompting many aging small owners to consider cashing out while large operators leverage technology to efficiently manage their growing, often pricier, portfolios.
Regional and Market Variations
- New York City rents varied 45% between boroughs, Manhattan at $4,200 median.
- California statewide median rent $2,760 in 2024, 39% above national.
- Midwest rents averaged $1,389, lowest regionally with 2.1% growth.
- Texas metro rents grew 5.3% YoY, Dallas at $1,599 median.
- Northeast vacancy 6.2%, rents $2,010 avg, high due to regulation.
- Florida rents 12% above national, Tampa Bay up 6.8% in 2024.
- Pacific Northwest rents $1,945 Seattle vs $1,450 Portland.
- Southeast markets saw 4.9% rent growth, Charlotte leading at 5.7%.
- Rust Belt cities like Detroit had $1,210 median, 1.5% YoY rise.
- Mountain West rents highest growth 6.1%, Boise $1,599.
- NYC suburbs rents 15% below city but vacancy 2 points higher.
- Gulf Coast vacancy 7.1%, Houston rents flat at $1,389.
- Canadian border cities like Buffalo rents $1,450, up 3.9%.
- Southwest deserts Phoenix $1,599 vs Tucson $1,299 differential.
- New England rents $2,150 Boston dominant, 4.2% growth.
- Plains states avg $1,120, vacancy 8.5% highest nationally.
- Hawaii rents $2,450 median, 23% above continental US.
- Upper Midwest Minneapolis $1,599, 3.2% YoY, low vacancy.
- Mid-Atlantic DC $2,350 vs Philly $1,750 wide variance.
- Rocky Mountains Denver $1,945, Colorado Springs $1,450.
- Deep South Atlanta $1,812 vs Birmingham $1,299 gap.
- Great Lakes Chicago $2,010, Cleveland $1,120 stark contrast.
Regional and Market Variations Interpretation
So, while New Yorkers are bravely paying a Manhattan ransom for their shoebox apartments, the rest of the country is engaged in a decidedly less glamorous tug-of-war between Sunbelt surges, Midwest modesty, and the universal lament that the only thing growing faster than rents in the Mountain West is the desire to live anywhere else.
Rental Prices and Trends
- As of Q3 2024, the national median rent in the US reached $1,986 per month, marking a 3.2% year-over-year increase driven by persistent demand in suburban markets.
- In 2023, average rent for a two-bedroom apartment in the US was $1,741, up 4.1% from 2022, with Midwest cities seeing the highest growth at 5.8%.
- San Francisco's median rent for one-bedroom units hit $2,970 in September 2024, a 1.8% increase YoY despite tech sector layoffs.
- From 2020 to 2023, US multifamily rents rose 25.4% nationally, with Class A properties averaging $2,156 per month.
- In Q2 2024, Phoenix metro area rents grew 4.7% YoY to a median of $1,599, fueled by migration from California.
- The US average rent for studios increased to $1,487 in 2024, a 2.9% rise, with urban areas lagging behind suburbs by 1.2%.
- Year-over-year rent growth in Atlanta reached 6.2% in mid-2024, pushing median two-bedroom rents to $1,812.
- National asking rents for single-family homes averaged $2,137 per month in Q3 2024, up 3.5% from prior year.
- In 2023, median rent in Miami climbed 9.1% to $2,450 for one-bedrooms, outpacing national average by 45%.
- US rent prices stabilized in 2024 with a 0.8% national decline in Q1, but luxury segments grew 2.1%.
- Denver's average rent rose 3.9% YoY to $1,945 in 2024, driven by remote worker influx.
- From Jan 2023 to Jan 2024, national median rent increased 2.6% to $1,964, per Redfin data.
- In Q4 2023, Austin rents fell 2.1% YoY to $1,672 median, signaling market cooling.
- National multifamily occupancy-adjusted rents grew 3.8% in 2023 to $1,682 average.
- Chicago's two-bedroom median rent was $2,010 in 2024, up 4.3% amid low supply.
- US pet-friendly rental premiums averaged 12% higher rents in 2023, adding $200/month.
- Nashville rents surged 7.2% YoY in 2023 to $1,689 median one-bedroom.
- In 2024, national rent-to-income ratio hit 30.4%, highest since 2010 housing crash.
- Tampa's median rent grew 5.6% to $1,945 in Q2 2024, per local market reports.
- Year-end 2023 saw US average apartment rent at $1,713, up 2.8% annually.
- Orlando one-bedroom rents averaged $1,782 in 2024, a 4.9% YoY increase.
- National furnished apartment rents were 28% higher than unfurnished in 2023.
- Boise, ID rents rose 3.1% to $1,599 median in 2024 post-pandemic boom slowdown.
- In 2023, US short-term rental rates averaged $185/night, up 8.4% YoY.
- Charlotte's two-bedroom rents hit $1,675 in Q3 2024, growing 5.2% YoY.
- National rent growth slowed to 1.2% in H1 2024 from 7.5% peak in 2022.
- Raleigh-Durham median rent was $1,689 in 2024, up 4.1% driven by tech jobs.
- In Q3 2024, median US rent for three-bedrooms reached $2,456, +3.7% YoY.
- Las Vegas rents stabilized at $1,499 median in 2024 after 10% prior growth.
- 2023 national average security deposit equaled one month's rent of $1,721.
- In 2024 Q2, Seattle median rent was $2,195 for one-bedrooms, +2.4% YoY.
Rental Prices and Trends Interpretation
The nation's renters are collectively tightening their belts as even fleeing Californians can't outrun a market where affordability is becoming a quaint memory, with landlords happily collecting pet premiums from tenants who can't afford a down payment anyway.
Tenant Demographics
- In 2023, 42% of US renter households were millennials aged 25-34.
- Black Americans comprised 20.1% of renters in 2023, facing higher burdens.
- Households earning under $35k/year made up 28% of US renters in 2022.
- Single-person renter households increased to 35% nationally in 2023.
- Gen Z renters (18-24) grew 15% from 2020-2023 to 8.2 million households.
- In 2023, 52% of renters under 30 lived with roommates to afford housing.
- Hispanic renters rose to 22.4% of total US renters by 2023 Census.
- Female-headed renter households were 18% more likely to be cost-burdened.
- Baby boomers (55+) now 22% of renters, up from 15% in 2010.
- Urban renters averaged household size of 2.1 persons in 2023.
- Low-income renters (below 50% AMI) comprised 43% of total in 2023.
- Student renters made up 12% of urban markets in 2023-2024 academic year.
- Married couples renting increased 8% since 2020 to 28% of households.
- Asian American renters faced 32% rent burden rate in major metros 2023.
- Remote workers among renters grew to 35% in 2024 surveys.
- Elderly renters (65+) reached 5.2 million households in 2023.
- Households with children under 18 were 29% of renters in 2023.
- LGBTQ+ renters reported 15% higher mobility rates in 2023 studies.
- Veterans comprised 7% of US renters in 2023 VA data.
- Multi-generational renter households up 12% to 18% since pandemic.
- Nashville renters median age 32.4 years in 2024 market analysis.
- 61% of Gen Z prefer renting over buying per 2024 surveys.
- Disabled individuals were 13% of renter population in 2023.
- Suburban renters shifted younger, median age 34 vs urban 37.
- 47% of US renters moved within last 5 years per 2023 ACS.
- Miami renter households averaged 2.8 persons, highest nationally.
- 29% of renters were college-educated in 2023, up from 24% 2010.
- Single parents headed 22% of family renter households.
- Phoenix renters 41% Hispanic, driving market diversity.
- 18-34 year olds 48% of total renter base in 2024.
- In 2023, 15.3 million US renter households included at least one child.
- 36% rent burden affected renters earning $50k-$75k in 2023.
Tenant Demographics Interpretation
The rental market is a high-stakes game of musical chairs where nearly everyone, from cash-strapped Gen Z roommates to rising numbers of elderly and multi-generational families, is desperately trying to keep up with the music as the cost of a seat soars.
Vacancy Rates and Availability
- National vacancy rates dropped to 6.6% in Q2 2024, tightening rental supply.
- US multifamily vacancy rate averaged 6.9% in 2023, down from 7.5% in 2022.
- In Sun Belt cities, vacancy rates fell to 5.8% in mid-2024 due to construction lag.
- National rental vacancy rate was 6.1% in Q1 2024, per Census Bureau data.
- Manhattan apartment vacancy hit 3.2% in 2024, lowest in a decade amid return-to-office.
- US single-family rental vacancy was 4.8% in 2023, tighter than multifamily.
- Atlanta metro vacancy rate declined to 6.4% in Q3 2024 from 8.1% prior year.
- National apartment supply growth slowed to 2.5% in 2024, boosting occupancy to 94.1%.
- Phoenix rental vacancy fell 1.2 points to 5.9% in 2024 on demand surge.
- US overall housing vacancy rate was 12.1% in 2023, but renter portion at 6.4%.
- Chicago vacancy rates stabilized at 7.2% in 2024 after pandemic highs.
- New construction deliveries pushed national vacancy up 0.3% to 7.1% in Q4 2023.
- Miami's rental vacancy dipped to 4.9% in mid-2024, reflecting hot market.
- Suburban US vacancy rates averaged 6.8% in 2024, higher than urban 5.5%.
- Denver apartment vacancy rose to 7.5% in Q3 2024 on new supply wave.
- National physical vacancy for multifamily was 6.5% in 2023 per NMHC.
- Austin vacancy rates climbed to 9.2% in 2024, easing rent pressure.
- US long-term rental vacancy held at 6.7% through 2023 Census data.
- Nashville vacancy fell to 5.3% in 2024 amid strong job growth.
- Multifamily economic vacancy averaged 8.1% nationally in Q2 2024.
- San Francisco Bay Area vacancy was 4.1% in 2024, very competitive.
- Tampa rental market vacancy at 6.9% in Q3 2024, balanced supply-demand.
- National new apartment absorption rate hit 93% within 12 months in 2023.
- Orlando vacancy rates dropped to 6.2% in 2024 on tourism rebound.
- Midwest US vacancy averaged 7.8% in 2024, higher due to slower migration.
- Las Vegas apartment vacancy stabilized at 6.5% post-2023 decline.
- Seattle's rental vacancy was 4.8% in Q2 2024, tight despite tech shifts.
- Charlotte vacancy fell 0.9 points to 6.1% in mid-2024.
Vacancy Rates and Availability Interpretation
The rental market is collectively cinching its belt, making your apartment search feel like a competitive sport where everyone's winning except you.
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