US Apartment Rents Drop 0.9% Year over Year

US apartment rents fell 0.9% year over year in August. This marks the 37th consecutive month of annual declines. The median asking rent across the 50 largest metro areas was $1,699. That figure is down $65 from the summer 2022 peak. However, it remains 15.4% higher than August 2019 levels.

All tracked apartment categories saw annual price drops. Studio median rents hit $1,436, a 1.2% decrease. One-bedroom units averaged $1,586, down 0.8%. Two-bedroom apartments stood at $1,896, a 0.9% decline. These prices are still 13.1% to 17.7% above pre-pandemic averages.

Landlords Increase Concession Offers

Rising vacancy rates have driven an increase in landlord concessions. In August, 43.5% of apartments offered at least one perk. This is a 3.1% rise from a year earlier. Common incentives include waived application fees and free rent periods. Landlords use these tools to fill units without lowering advertised rates.

Denver recorded the highest concession rate at 71.9%. Austin, Texas, followed with 70.7% of listings including discounts. Las Vegas ranked third with 69.6%. A survey found 37.9% of landlords favor fee waivers. 30.7% chose amenity upgrades. 65% refused to waive security deposits.

Regional Markets Show Divergent Trends

The San Francisco Bay Area defied the national downward trend. San Jose rents rose 4.7% year over year. Its concession rate was only 22.5%. San Francisco rents increased 4.5% with a 27.4% concession rate. Pittsburgh also saw strong growth of 3.6%. These markets remain tight due to local job growth.

Renter Power Grows In Fall

Weak demand and new supply have shifted leverage to renters. Senior economist Jiayi Xu notes that fall brings more negotiating power. The market expects seasonal slowdowns in monthly rents. Year-over-year declines are likely to continue. The data comes from GN auto markets/housing: rental market reports.