In November, U.S. rent prices dipped slightly, aligning with the usual seasonal slowdown, but there are signs that rental demand could rebound in early 2025. The typical rent was $1,983, which was an increase of 3.4% from last year but down 0.2% from October, according to real estate marketing platform Zillow’s Observed Rent Index. Rental rates for single-family homes increased marginally to $2,198, up 4.4% annually. On the other hand, multifamily rents dropped slightly to $1,827, though they remain 2.4% higher than they were a year ago.
So, what is in store? Thanks in large part to that construction boom, rent growth has been fairly soft this year. That is expected to last into at least the first half of 2025. However, the number of new apartment permits has drawn back dramatically, meaning the heights hit this year are likely to fade into the rearview mirror.
Over the full year, Zillow forecasts single-family rents to grow 4.1%, down from 4.4% year-over-year growth as of November, and multifamily rents to grow 2.8%, up from the current pace of 2.4%. As the number of new apartments hitting the market begins to come back down to earth and competition intensifies, expect fewer concessions to be on offer. Read more