Highlights
- November 2024 marks the sixteenth month of year-over-year rent decline in a row for 0-2 bedroom properties. Asking rents dipped by $19 or -1.1% year-over-year.
- The median asking rent in the 50 largest metros registered at $1,703, down by $17 from last month and $57 lower than its August 2022 peak.
- Median rent declined in all size categories with larger percent declines in smaller-sized units: Studio: $1,423, down $13 (-1.6%) year-over-year; 1-bed: $1,585, down $19 (-1.2%) year-over-year; 2-bed: $1,886, down $21 (-1.1%) year-over-year.
- Minimum wage earners have to work extended hours to afford a typical 0-2 bedroom rental unit in the top 10 metros with the biggest rent declines, leading by 82 hours per week in Nashville, TN and 79 hours per week in Austin, TX.
- Starting January 1, 2025, higher minimum wages will allow minimum wage earners in St. Louis, MO, and Kansas City, MO, to work four fewer hours per week to afford a typical 0–2 bedroom rental unit.
In November 2024, the U.S. median rent continued to decline year-over-year for the sixteenth month in a row, down $19 or -1.1% year-over-year for 0-2 bedroom properties across the top 50 metros, faster than the rate of -0.8% seen in October 2024. The median asking rent was $1,703, down by $17 from last month, reflecting a similar seasonal trend as observed in the for-sale market.
Despite the sixteenth month of decline, the U.S. median rent was just $57 (-3.2%) less than the peak seen in August 2022. Notably, it was still $261 (18.1%) higher than the same time in 2019 (pre-pandemic), but this increase is roughly on par with what has occurred in overall consumer prices (up 22.7% in the 5 years ending November 2024) and pales in comparison to the 49.7% increase in median price-per-square-foot of for-sale home listings in the 5 years ending November 2024. Further, the relative steadiness in rents should translate into slower shelter inflation in the months ahead, alleviating one of the biggest recent drivers of a rising price level.
Figure 1: Rents Decline Again, but Nationwide Rent Is 3.2% Below 2022 Peak
All units saw rent declines
In November 2024, the median asking rent for two bedroom units dropped -1.1%, a larger dip than the rate seen in October, and the eighteenth consecutive month of annual declines. The median rent for two bedrooms was $1,886 nationally, $75 (-3.8%) lower than the peak seen in August 2022. Nevertheless, larger unit rents had the highest growth rate over the past five years, up by $317 (20.2%).
The rent for one-bedroom units slipped -1.2% in November 2024 on a year-over-year basis, marking the eighteenth decline in a row and a faster pace compared to the decline of -0.9% in October. The median rent was $1,585, $73 (-4.4%) lower than the peak observed during August 2022, but still $223 (16.4%) higher than in November 2019.
In November 2024, the median asking rent for studios fell by -1.6%, marking the sixteenth consecutive month of annual declines. The median rent of studios was $1,423 in November, down by $67 (-4.5%) from its peak seen in October 2022. Nevertheless, the median asking rent for studios was still $153 (12.0%) higher than five years ago.
Figure 2: Smaller Units Saw Larger Rent Declines
Table 1: National Rents by Unit Size
| Unit Size | Median Rent | Rent YoY | Rent Change – 5 years |
| Overall | $1,703 | -1.1% | 18.1% |
| Studio | $1,423 | -1.6% | 12.0% |
| 1-bed | $1,585 | -1.2% | 16.4% |
| 2-bed | $1,886 | -1.1% | 20.2% |
Despite year-over-year rent declines, minimum-wage workers still face extended work hours to afford rents
Affordability remains a significant challenge in rental markets, particularly for low-income groups. To better understand the hurdles faced by hourly workers in today’s rental market, we analyze how many hours per week a renter would need to work at local minimum-wage rates to afford a typical 0-2 bedroom home.
Our approach begins by estimating the annual household income required to afford a typical 0-2 bedroom unit, using the 30% rule of thumb for housing affordability. Next, we calculate the number of weekly working hours needed to achieve this income. Based on the ACS 2023 1-Year Estimate, the average American household consists of 2.49 people. For simplicity, we assume two renters share the same rental property and split the rent equally.
As the rental market has cooled, rents have fallen for 16 consecutive months nationwide. Our analysis focuses on the top 10 metropolitan areas that experienced the largest year-over-year declines in November 2024 and documents the hours a minimum-wage earner needs to work to keep themselves housed.
Encouragingly, as shown in Table 3, lower rents combined with stable or increased minimum wages have provided some relief to renters, with fewer working hours required in all of these top 10 metros when compared with the same time last year.
Table 3: Despite Large Year-Over-Year Rent Declines, Minimum-Wage Workers Still Face Extended Hours To Afford Rents
| Market | Median Asking Rent,
Nov. 2024 |
YOY Change | Annual HH Income Needed to Afford a 0-2 Bedroom, Nov 2024 | Minimum Wage 2024 https://www.adp.com/-/media/adp/resourcehub/pdf/minimum-wage-increases-chart.pdf; Data on 2023 minimum wage is obtained from: https://www.adp.com/-/media/adp/blog/articles/pdf/a/d/adp-2023-minimum-wage-increases-chart-v3-updated-may-22-2023_877938.pdf?rev=85ff9e95c9c64fd0bf75ecc56e3fd4c1&hash=7CD0287249477AA9561F4B753A42657A “>1 | Work Hours per Renter per Week at Minimum Wage, Nov. 2024 | Diff. in Hours (Nov. 2024 vs. 2023) |
| Denver-Aurora-Lakewood, CO | $1,808 | -6.7% | $72,320 | $18.29 | 38 | -5 |
| Memphis, TN-MS-AR | $1,186 | -6.2% | $47,440 | $7.25 | 63 | -4 |
| Nashville-Davidson–Murfreesboro–Franklin, TN | $1,542 | -5.6% | $61,680 | $7.25 | 82 | -5 |
| Austin-Round Rock-Georgetown, TX | $1,486 | -4.7% | $59,440 | $7.25 | 79 | -4 |
| San Francisco-Oakland-Berkeley, CA | $2,711 | -4.5% | $108,440 | $16.00 | 65 | -5 |
| Dallas-Fort Worth-Arlington, TX | $1,453 | -4.4% | $58,120 | $7.25 | 77 | -4 |
| San Diego-Chula Vista-Carlsbad, CA | $2,726 | -4.3% | $109,040 | $16.85 | 62 | -5 |
| Phoenix-Mesa-Chandler, AZ | $1,503 | -4.1% | $60,120 | $14.35 | 40 | -4 |
| Birmingham-Hoover, AL | $1,236 | -3.6% | $49,440 | $7.25 | 66 | -2 |
| San Antonio-New Braunfels, TX | $1,242 | -3.5% | $49,680 | $7.25 | 66 | -2 |
However, in 8 of the 10 analyzed markets, two minimum-wage workers splitting the rent would still need to work more than 40 hours per week to keep rent to an affordable 30% of their budget, particularly in areas where the minimum wage remains set at the federal rate of $7.25 per hour. Even in markets with higher state or local minimum-wage laws, such as San Francisco, CA, and San Diego, CA, working hours beyond a full 40-hour workweek are required.
On the other hand, two minimum-wage earners in Denver, CO, and Phoenix, AZ, can keep rental costs for a typical 0-2 bedroom within the recommended budget share of fewer than 40 hours per week. Additionally, workers in Minneapolis, MN, and Seattle, WA, need to work approximately 37 hours per week to cover the cost of a similar rental unit.
Higher Minimum Wages and Falling Rents Offer Continued Relief in 2025
On Jan. 1, 2025, minimum wages in 23 of the top 50 markets are set to increase.https://www.adp.com/-/media/adp/resourcehub/pdf/minimum-wage-increases-chart.pdf “>2 If January 2025 rents remain consistent with November 2024 levels, 8 of these markets are expected to see at least a two-hour reduction in weekly working hours needed to afford rent. Leading this relief are St. Louis, MO, and Kansas City, MO.
In fact, with scheduled minimum-wage increases in more markets throughout the year and a projected 0.1% year-over-year decline in median asking rents for 2025, these changes could offer more relief to minimum-wage earners.
Table 4: Markets Expecting Large Working Hour Reductions on Jan. 1, 2025
| Market | Median Asking Rent,
Nov. 2024 |
Annual HH Income Needed to Afford a 0-2 Bedroom, Nov 2024 | Minimum Wage Nov. 2024 | Minimum Wage Jan. 2025 | Work Hours per Renter per Week at Minimum Wage, Nov. 2024 | Diff. in Hours ( Jan. 2025 vs. Nov. 2024) |
| St. Louis, MO-IL | $1,323 | $52,920 | $12.30 | $13.75 | 41 | -4 |
| Kansas City, MO-KS | $1,342 | $53,680 | $12.30 | $13.75 | 42 | -4 |
| Sacramento-Roseville-Folsom, CA | $1,902 | $76,080 | $16.00 | $16.50 | 46 | -2 |
| Virginia Beach-Norfolk-Newport News, VA-NC | $1,500 | $60,000 | $12.00 | $12.41 | 48 | -2 |
| Riverside-San Bernardino-Ontario, CA | $2,074 | $82,960 | $16.00 | $16.50 | 50 | -2 |
| San Francisco-Oakland-Berkeley, CA | $2,711 | $108,440 | $16.00 | $16.50 | 65 | -2 |
| New York-Newark-Jersey City, NY-NJ-PA | $2,905 | $116,200 | $16.00 | $16.50 | 70 | -2 |
| San Jose-Sunnyvale-Santa Clara, CA | $3,314 | $132,560 | $17.55 | $17.95 | 73 | -2 |
Looking ahead, while we don’t expect the average seasonally adjusted annual completion rate observed in 2024 to persist throughout an entire year given the year-over-year declining units under construction, our hypothetical annual completion rates suggest that the rental stock will increase most in the South (+1.5%) by fall 2025, followed by the West (+1.2%), Midwest (+0.9%), and Northeast (+0.7%). These increases will push the overall rental stock increase by 8.9% in the South, 8.6% in the West, 5% in the Northeast, and 1.7% in the Midwest when compared with the pre-pandemic level.
Appendix: Rental Data—50 Largest Metropolitan Areas—November 2024
| Cbsa Title | Median Asking Rent | YOY Change | Minimum Wage 2024 | 2024 Work Hours per Renter per Week at Minimum Wage |
| Atlanta-Sandy Springs-Alpharetta, GA | $1,576 | -3.1% | $7.25 | 84 |
| Austin-Round Rock-Georgetown, TX | $1,486 | -4.7% | $7.25 | 79 |
| Baltimore-Columbia-Towson, MD | $1,812 | -0.2% | $15.00 | 46 |
| Birmingham-Hoover, AL | $1,236 | -3.6% | $7.25 | 66 |
| Boston-Cambridge-Newton, MA-NH | $2,942 | -1.0% | $15.00 | 75 |
| Buffalo-Cheektowaga, NY | NA | NA | NA | NA |
| Charlotte-Concord-Gastonia, NC-SC | $1,519 | -2.7% | $7.25 | 81 |
| Chicago-Naperville-Elgin, IL-IN-WI | $1,793 | -2.7% | $16.20 | 43 |
| Cincinnati, OH-KY-IN | $1,365 | 2.6% | $10.45 | 50 |
| Cleveland-Elyria, OH | $1,193 | -3.0% | $10.45 | 44 |
| Columbus, OH | $1,190 | 0.2% | $10.45 | 44 |
| Dallas-Fort Worth-Arlington, TX | $1,453 | -4.4% | $7.25 | 77 |
| Denver-Aurora-Lakewood, CO | $1,808 | -6.7% | $18.29 | 38 |
| Detroit-Warren-Dearborn, MI | $1,316 | -0.8% | $10.33 | 49 |
| Hartford-East Hartford-Middletown, CT | NA | NA | NA | NA |
| Houston-The Woodlands-Sugar Land, TX | $1,375 | -1.4% | $7.25 | 73 |
| Indianapolis-Carmel-Anderson, IN | $1,288 | -0.8% | $7.25 | 68 |
| Jacksonville, FL | $1,523 | -1.1% | $13.00 | 45 |
| Kansas City, MO-KS | $1,342 | 1.1% | $12.30 | 42 |
| Las Vegas-Henderson-Paradise, NV | $1,479 | -0.8% | $12.00 | 47 |
| Los Angeles-Long Beach-Anaheim, CA | $2,789 | -1.4% | $17.28 | 62 |
| Louisville/Jefferson County, KY-IN | $1,245 | 0.6% | $7.25 | 66 |
| Memphis, TN-MS-AR | $1,186 | -6.2% | $7.25 | 63 |
| Miami-Fort Lauderdale-Pompano Beach, FL | $2,353 | -1.1% | $13.00 | 70 |
| Milwaukee-Waukesha, WI | $1,613 | -0.2% | $7.25 | 86 |
| Minneapolis-St. Paul-Bloomington, MN-WI | $1,516 | 0.1% | $15.57 | 37 |
| Nashville-Davidson–Murfreesboro–Franklin, TN | $1,542 | -5.6% | $7.25 | 82 |
| New Orleans-Metairie, LA | NA | NA | NA | NA |
| New York-Newark-Jersey City, NY-NJ-PA | $2,905 | 2.0% | $16.00 | 70 |
| Oklahoma City, OK | $1,023 | 1.6% | $7.25 | 54 |
| Orlando-Kissimmee-Sanford, FL | $1,680 | -0.9% | $13.00 | 50 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $1,761 | -1.1% | $7.25 | 93 |
| Phoenix-Mesa-Chandler, AZ | $1,503 | -4.1% | $14.35 | 40 |
| Pittsburgh, PA | $1,440 | -0.9% | $7.25 | 76 |
| Portland-Vancouver-Hillsboro, OR-WA | $1,687 | 1.6% | $15.00 | 43 |
| Providence-Warwick, RI-MA | NA | NA | NA | NA |
| Raleigh-Cary, NC | $1,512 | -1.4% | $7.25 | 80 |
| Richmond, VA | $1,478 | -1.3% | $12.00 | 47 |
| Riverside-San Bernardino-Ontario, CA | $2,074 | -3.2% | $16.00 | 50 |
| Rochester, NY | $1,319 | 4.3% | $15.00 | 34 |
| Sacramento-Roseville-Folsom, CA | $1,902 | 1.7% | $16.00 | 46 |
| San Antonio-New Braunfels, TX | $1,242 | -3.5% | $7.25 | 66 |
| San Diego-Chula Vista-Carlsbad, CA | $2,726 | -4.3% | $16.85 | 62 |
| San Francisco-Oakland-Berkeley, CA | $2,711 | -4.5% | $16.00 | 65 |
| San Jose-Sunnyvale-Santa Clara, CA | $3,314 | 2.6% | $17.55 | 73 |
| Seattle-Tacoma-Bellevue, WA | $1,971 | -2.3% | $19.97 | 38 |
| St. Louis, MO-IL | $1,323 | 1.1% | $12.30 | 41 |
| Tampa-St. Petersburg-Clearwater, FL | $1,713 | -1.7% | $13.00 | 51 |
| Virginia Beach-Norfolk-Newport News, VA-NC | $1,500 | -0.6% | $12.00 | 48 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | $2,255 | 2.0% | $17.50 | 50 |
Footnotes
- Data on 2024 minimum wage is obtained from: https://www.adp.com/-/media/adp/resourcehub/pdf/minimum-wage-increases-chart.pdf; Data on 2023 minimum wage is obtained from: https://www.adp.com/-/media/adp/blog/articles/pdf/a/d/adp-2023-minimum-wage-increases-chart-v3-updated-may-22-2023_877938.pdf?rev=85ff9e95c9c64fd0bf75ecc56e3fd4c1&hash=7CD0287249477AA9561F4B753A42657A
- Data on January 2025 minimum wage is found from: https://www.adp.com/-/media/adp/resourcehub/pdf/minimum-wage-increases-chart.pdf
