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ustin led the nation in rent declines, with median asking rents falling 23% from their peak. According to Redfin, the median U.S. asking rent dropped 0.3% year-over-year in December 2024, reaching $1,594 - its lowest point since March 2022. This decline represents a 6.2% drop from the record high of $1,700 in August 2022.

    The surge in new apartments has led to rising vacancies, with apartment completions increasing by 58.1% year-over-year in the third quarter of 2024 - the highest level since 1974. As a result, the vacancy rate for buildings with five or more units rose to 8%, the highest since early 2021.

    "We're starting 2025 in a renter's market," said Redfin Senior Economist Sheharyar Bokhari. "However, while asking rents fell in 2024, they may not decline much further this year as apartment construction begins to slow."

    Declines were seen across all apartment types, with larger units experiencing the sharpest drops. The median rent for 0-1 bedroom apartments fell 1% year-over-year to $1,449, while 3+ bedroom apartments dropped 2.5% to $1,950.

    Austin's median asking rents fell 16.3% year-over-year in December, landing at $1,393 - 22.6% below the city's August 2023 peak. Florida metros followed closely, with Tampa (-10.4%) and Jacksonville (-6.7%) seeing significant declines. Other notable decreases occurred in Nashville (-6.3%) and New York (-4.6%).

    While rents fell in many areas, some cities saw notable increases. Providence recorded the largest year-over-year gain, with rents up 12.6%. Other cities with significant rent increases included Virginia Beach (10.9%), Louisville (10%), Baltimore (10%), and Buffalo (9.4%).