Extending from Nevada to Florida, the Sun Belt encompasses much of the Southern US. It includes popular cities like Atlanta, Tampa, Austin, and Phoenix. Renters in this region are seeing rent prices that are flat or even lower than last year, even as rent prices in the rest of the US began to inch upward in August.
This trend of stable or declining rent prices in the Sun Belt is largely attributed to a surplus of newly constructed apartments, a legacy of the recent building boom that continues to increase housing availability. The region's appeal—boasting a warm climate, booming job markets, and favorable cost of living—is complemented by these economic dynamics, providing renters with more options and negotiating power.
This contrasts sharply with the Midwest and Northeast, where rent prices are climbing due to higher demand and limited supply.
Rent Prices Tumble in Luxury Markets
Overall, the average rent price in the United States is up slightly at 0.8%. However, this uptick is due to increased demand for mid-priced apartments (up 1.7%) and affordable apartments (up 2.2%). Rent prices for luxury apartments are flat, up about 0.3%.
Not surprisingly, neighborhoods that are considered more expensive, especially those in the Sun Belt, are seeing the biggest declines in both rent prices and demand. According to a recent CoStar News report, rent prices in Atlanta fell -1.6%. However, high-end Atlanta neighborhoods like Buckhead and Midtown, both of which have a significant number of luxury apartment communities, saw rent prices fall by -3.4% and -3%, respectively.
Vacancy Rate Remains Steady
The vacancy rate hasn’t budged, remaining at 7.8 percent in August for the 11th consecutive quarter. Despite this stability on the national level, not all apartment communities or locations are performing equally. For example, luxury apartments have a vacancy rate of 11.3%, well above mid-priced apartments at 7%. Meanwhile, some cities, like Austin, are experiencing vacancy rates that are significantly higher than national average, reaching 14.1%.
Conversely, some cities are seeing vacancy rates well below the national average. Pittsburgh, for example, currently has a vacancy rate of 5.9%, while San Francisco is at 6.2%.
Cities with the Biggest Rent Increases
In July, Louisville, Kentucky led the way as the city with the biggest rent increase. And while rent in Louisville is still on the rise, it was at a much slower pace in August, up just 0.1%.
This month, another surprising city topped the list: Erie, Pennsylvania. With a very low vacancy rate of just 3.8%, Erie saw a 1% increase in rent prices. However, Erie is still considered one of the more affordable locations in the US, with its average rent of $873 per month 44% lower than the national average.
For August 2024, here are the cities with biggest rent increases:
- Erie, PA (+1.0%)
- Duluth, MN (+0.9%)
- Green Bay, WI (+0.9%)
- Richmond, VA (+0.9%)
- Columbus, OH (+0.9%)
Cities with the Biggest Rent Declines
Rent prices are still falling in the Sun Belt region, where supply continues to outpace demand. Austin continues to see the biggest decline in rent prices, a trend that started about a year ago. However, the declining rent prices have slowed significantly. Last month, Austin topped the list with a rent decline of -5.1%. In August, prices fell just -1.2%.
For August 2024, here are the five cities with the biggest rent declines:
- Austin, TX (-1.2%)
- Charlotte, NC (-0.9%)
- Atlanta, GA (-0.9%)
- Dallas, TX (-0.6%)
- Raleigh, NC (-0.5%)
Current Rent Prices Across the US
|
City |
Current Average Rent |
Last Month’s Average Rent |
Year-Over-Year Difference |
|
$2,371 |
$2,366 |
+5.1% |
|
|
$1,602 |
$1,572 |
-1.7% |
|
|
$1,467 |
$1,438 |
-4.5% |
|
|
$3,487 |
$3,446 |
+2.1% |
|
|
$1,605 |
$1,591 |
+0.6% |
|
|
$2,738 |
$2,707 |
+1.4% |
|
|
$1,795 |
$1,776 |
+1.5% |
|
|
$1,471 |
$1,440 |
-1.7% |
|
|
$1,858 |
$1,844 |
+2.3% |
|
|
$1,076 |
$1,056 |
+2.6% |
|
|
$1,343 |
$1,313 |
-0.9% |
|
|
$1,115 |
$1,105 |
+1.5% |
|
|
$1,403 |
$1,378 |
-0.8% |
|
|
$1,713 |
$1,692 |
-0.5% |
|
|
$2,167 |
$2,129 |
-0.6% |
|
|
$1,277 |
$1,239 |
-0.3% |
|
|
$3,686 |
$3,591 |
+4.8% |
|
|
$1,711 |
$1,665 |
+1.4% |
|
|
$1,194 |
$1,171 |
+1.1% |
|
|
$1,095 |
$1,072 |
+2.8% |
|
|
$2,958 |
$2,895 |
-0.1% |
|
|
$1,307 |
$1,270 |
-2.3% |
|
|
$3,139 |
$3,039 |
+2.4% |
|
|
$1,168 |
$1,144 |
+2.1% |
|
|
$1,287 |
$1,255 |
+0.1% |
|
|
$1,755 |
$1,745 |
+1% |
|
|
$2,159 |
$2,119 |
+0.3% |
|
|
$1,413 |
$1,392 |
+3.3% |
|
|
$2,116 |
$2,075 |
+3% |
|
|
$1,139 |
$1,218 |
+2.6% |
|
|
$1,356 |
$1,339 |
+0.7% |
|
|
$1,678 |
$1,644 |
+0% |
|
|
$3,864 |
$3,805 |
+2.8% |
|
|
$1,582 |
$1,556 |
+0.2% |
|
|
$1,715 |
$1,694 |
+0.6% |
|
|
$1,346 |
$1,309 |
-1% |
|
|
$1,323 |
$1,308 |
+2.8% |
|
|
$1,520 |
$1,495 |
+1.1% |
|
|
$2,378 |
$2,339 |
+0.9% |
|
|
$1,377 |
$1,351 |
-3.1% |
|
|
$1,367 |
$1,356 |
+3% |
|
|
$1,545 |
$1,515 |
+1.8% |
|
|
$1,089 |
$1,069 |
+0.3% |
|
|
$1,113 |
$1,091 |
-1.3% |
|
|
$2,328 |
$2,293 |
-0.4% |
|
|
$2,894 |
$2,849 |
+1.6% |
|
|
$2,579 |
$2,554 |
+3.5% |
|
|
$2,056 |
$2,035 |
+1.3% |
|
|
$1,620 |
$1,599 |
-0.8% |
|
|
$2,293 |
$2,272 |
+1.6% |
How Current Rent Prices Impact Renters
If you’re starting your apartment search, you might notice fewer vacancies and higher rent prices, depending in where you live and the type of apartment you want. The improving economy, lower inflation, and higher consumer confidence is motivating more people to move. As a result, the vacancy rate is holding steady at 7.8% and rent prices are starting to trend upward again.
By the end of the year, the overall rent price in the US is expected to increase by 1.6%, according to a recent report published by CoStar.
Mid-priced apartments may be more difficult to find and come at a higher price, thanks to a surge in demand. In the first half of 2024, the demand for mid-priced apartments increased by 86%, which is driving the vacancy rate down and prices up.
Learn more about what you can expect by comparing the rent prices from this report to those from June and July to determine the overall trend and visit the US Rent Trends page to view the most current rent prices available across the US based on CoStar data.
FAQs
What is the average rent in the US right now?
According to Apartments.com, the average rent in the United States is currently $1,563 per month.
Which US states had the largest rent increases in 2024?
The states with the largest rent increases compared to last year are Wyoming, Vermont, and Virginia.
Are rents rising or falling in the US?
Overall, rent prices in the US have increased slightly year-over-year, up 0.8%.
Which states have the cheapest rent?
The states with the lowest rent prices right now are Oklahoma, West Virginia, and North Dakota.
