Rental Market Update: April 2024
The national asking rent rose 1.9% year-over-year in April 2024, while overall inflation hit 4.2% in May 2024. Meanwhile, Realtor.com reported a 1.5% year-over-year decrease in rent.
Key Market Trends
Incentives Are Widespread
In April 2024, 39.8% of rentals on Zillow offered move-in incentives, such as free rent or waived fees. This marks a significant shift as landlords compete for tenants.
Record Apartment Construction
The US built approximately 600,000 apartment units in 2024, the highest number in 38 years. This surge in supply is reshaping the rental landscape.
Vacancy Rates at 12-Year High
The rental vacancy rate reached 7.3% at the start of 2024, the highest level in over a decade. More empty units mean more options—and more leverage—for renters.
Regional Variation
Sun Belt Markets Favor Renters
In Nashville, TN; Phoenix, AZ; and Austin, TX, many new apartment buildings are offering incentives due to high supply. In Nashville, some landlords offered 1–3.5 months of free rent to attract tenants.
Chicago Rents Continue to Climb
Conversely, Chicago rents increased 5.4% year-over-year. A one-bedroom apartment costing $1,600 was considered a bargain, with larger units renting for $2,000 or more.
Important Caveats
Move-in incentives are temporary. Once a lease is signed, landlords may raise rent each year.
Long-Term Perspective
Average rent has risen 36.9% since the start of the COVID-19 pandemic, underscoring the cumulative burden on renters despite recent relief.
The Incentive Trap
Some renters, like Mason Comans in Nashville, have moved multiple times to continue receiving incentives—a strategy that highlights both the opportunities and the instability in today's market.