The median U.S. asking rent rose 0.8 percent year-over-year in May to $1,653—the highest level since October 2022. That’s the second consecutive increase following 11 months of decreases—and just $47 below the record high.
Rents rose 0.5 percent on a month-over-month basis, according to Redfin. For the past three quarters, the rental vacancy rate has hovered at 6.6 percent—the highest level since 2021.
“Demand from young renters remains high, as many of them are opting to stay put rather than contend with an increasingly unaffordable homebuying market,” said Redfin Senior Economist Sheharyar Bokhari. “But so far, rent price growth has been limited because there are enough new apartments to meet demand, even in the busiest time of year for the rental market.”
In Washington, D.C., the median asking rent rose 11.1 percent annually in May—the biggest jump among the 33 major U.S. metropolitan areas Redfin analyzed. Four other metros saw double-digit gains: Cincinnati, Chicago, Virginia Beach and Minneapolis.