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New Apartment Rents Climb Despite Construction Boom

Asking rents across the country increased by 1.5% following two-quarters of decreases.

By Kristen Smithberg | December 18, 2024 at 06:49 AM

Asking rents for newly constructed apartments have seen the biggest year-over-year increase in 18 months, rising 1.5% to a median of $1,802 during the third quarter. The increase followed two consecutive quarters in which rents for new apartments fell by more than 7%, according to a Redfin report. The median rent for new apartments had fallen as low as $1,714 during the second quarter, which was the lowest level since mid-2021.

On a regional basis, asking rents fell 3.6% in the Northeast during the third quarter as newly finished apartments increased 13% year-over-year to 11,390 units in the second quarter. That is the highest level of new completions since Q4 2022, said Redfin. The median new asking rent in the region was $2,300.

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