National rent growth continued to inch up in April by 0.5%, according to the May report from Apartment List, as 83 of the nation’s 100 largest cities saw rents rise in April.
In dollar terms, the national median monthly rent now stands at $1,392, up $7 per month compared to last month, but down $4 compared to April 2024.
The national median rent has now fallen below its August 2022 peak by a total of 3.5%, or $50 per month. But despite the cooldown, the typical rent price remains 21 percent higher than its January 2021 level.
April’s small rent increase was less than the March increase, and the March decline in itself was concerning at the beginning of the usual seasonal pattern of rent increases. Thus, “This month’s reading may be the first indication of demand slowing due to declining consumer confidence amid a more uncertain macroeconomic outlook,” writes the Apartment List Research Team writes.
Multifamily vacancy rate hits 7%, a new peak
Apartment List says its measure of the national multifamily vacancy rate increased again and now sits at 7 percent, “representing a new all-time high for this data series, which goes back to the start of 2017.”
The rising vacancy rate has been largely tied to the increase in new apartment construction. As new apartment completions decline, the vacancy rate will likely begin to tighten again, but “for now, we’re still seeing vacancies rise, even as rent declines gradually moderate,” the report says.
List-to-Lease time comes down from all-time high
Among units that were leased in April, the median time on market was 30 days, down from 33 days in March.
Units are currently sitting vacant for 1 day longer than they were at this time in 2024, but are still sitting for 10 days longer than they were in mid-2022, when the market was at its tightest.
The influx of new supply has resulted not only in a growing number of vacant units, but also in an increase in the length of time those units remain unoccupied.
Conclusion
April’s 0.5 percent increase shows rent prices continuing to trend up, but with some signs of potential demand weakness heading into peak moving season.
“As the level of new supply coming online continues to abate, we expect to see occupancy tighten and rent growth strengthen in the back half of this year, assuming that demand remains relatively stable. But amid a more uncertain macroeconomic outlook, stable demand is far from certain,” writes the Apartment List research team.
Read the full report here.
