It's not out of the ordinary for rents to dip between September and October, but this year’s drop was twice as large as normal. The Observed Renter Demand Index, from housing market platform Zillow, tracks renter interest relative to available units, and the index hit a record low in October, with vacancy rates rising to 6.9% as of Q3 2024. Consequently, rental concessions hit a new peak, with 37.7% of listings offering incentives in October.
Despite these shifts, annual rent growth held steady, with typical U.S. rents 3.3% higher than they were a year ago. Single-family home rents averaged $2,215 in October, unchanged month-over-month but up 4.3% year-over-year. Multifamily rents averaged $1,855, a 0.3% decrease from the previous month, but up 2.3% from the same time last year.
For renters who are looking to move soon, November will likely show continued high levels of concessions and slow year-over-year rent growth, as even more new apartment buildings come onto the market. Renters looking to move this fall will not only face less competition than those in the spring, but also less competition than renters in previous falls. Read more
