Average apartment rents in March nationally posted the first year-over-year decline in three years, though the D.C. area was among metros where rents continued to rise.
The average rent for a new lease signed in March in the D.C. metro was $2,628 a month, up 1.1% from March 2022, according to Redfin.
The median asking rent nationwide saw an annual drop of 0.4%, to $1,937, the first annual decline since March 2020, when the coronavirus was declared a pandemic. By comparison, average rents nationally in March were up 17.5% from a year earlier.
Rents nationally are now lower than a year ago, but Redfin reports it is more of a return to normal than a weakening rental market.
“It’s similar to the cost of eggs. You can say egg prices are plummeting, but what’s really happening is they’re finally making their way back to the norm,” said Redfin agent Dan Close. “Rents ballooned during the pandemic, and are now returning to earth.”
Redfin said part of the reason for rents now flatting and starting to decline in many markets is a surplus of supply from an apartment building boom. The number of multifamily units that went under construction and completed projects each rose to the second-highest level in more than three decades in February. Completed projects were up 72% from a year earlier.
Rents in March declined in 13 major metropolitan areas, led by an 11% drop in Austin, and a 9.2% drop in Chicago.
Raleigh saw the largest annual increase in average rents, up 16.6%, followed by 15.3% in Cleveland, and 13% in Charlotte.
The average rent in the D.C. metro in March was the 10th highest among the 50 largest markets. New York City topped the list for highest average rent at $4,022 a month, followed by San Francisco, at $3,716 and San Jose at $3,609.
Below is a five-year chart of average monthly asking rents nationally:
