For Agents

Q4 2024 Rental Market: Stability, Seasonal Shifts, and What’s Next

Rental Beast

As 2024 wrapped up, the rental market remained largely steady, with rent prices showing little movement and seasonal trends shaping demand. According to our latest Q4 2024 Rental Market Report, the majority of property managers expect conditions to hold firm in the coming months—73% predict rent prices will stay the same, while only 5% foresee a decrease.

With affordability top of mind for both renters and buyers, what trends defined the final quarter of the year?

📌 Rent Prices Hold Firm, But Movement Varies by Unit Type

Rental prices stayed relatively unchanged in Q4, reflecting a broadly stable market.

One-bedroom units remained at $1,777, unchanged since Q2.
Two-bedroom units saw a slight rise to $2,000, marking a return to earlier highs.
Three-bedroom rentals stabilized at $2,150, following fluctuations earlier in the year.
Single-family rentals held steady at $1,895, maintaining the same price for two consecutive quarters.
Multifamily rents continued a slow but steady increase, reaching $1,915.

This price consistency suggests that while demand remains healthy, affordability constraints may be keeping significant price hikes at bay.

📌 Rental Demand Shows Seasonal Slowdowns

Demand for rentals held relatively steady, but some property managers noticed a slowdown.

66% reported receiving about the same number of applications as previous quarters.
23% saw a decline in applications, likely due to affordability concerns or seasonal trends.
Only 12% experienced an increase in demand, suggesting that surges in renter interest were limited.

With the winter months typically bringing a natural dip in leasing activity, these trends align with expectations heading into the new year.

📌 Days on Market Increase as Leasing Activity Cools

Properties took longer to lease in Q4 compared to the previous quarter, a typical pattern for year-end.

Single-family rentals averaged 24 days on market, up from 21 in Q3.
Multifamily rentals took 26 days, compared to 23 in the prior quarter.

This slight slowdown in leasing activity reflects the typical seasonal lull before demand picks up again in early 2025.

📌 More Landlord Concessions as Competition Heats Up

To attract tenants in a competitive market, landlords increased incentives in Q4, with the national median concessions rate rising to 28%—the highest level in over a year.

Concessions grew from 24% in Q3 and 17% in Q4 2023, marking a clear trend of rising incentives.
Common concessions included discounted rent, waived fees, and move-in specials.

This increase suggests that landlords are responding to shifting tenant preferences and a growing supply of available rental units.

📌 Listings See Modest Growth, With One Exception

The number of available rental listings increased across most property types, continuing an upward trend from previous quarters.

Three-bedroom listings rose 1.5%
Two-bedroom listings were up 2.0%
One-bedroom listings increased 1.8%
Multifamily listings continued expanding, growing 2.0%

However, single-family rental listings declined slightly (-0.5%), reversing gains from earlier in the year. This suggests that supply constraints in the single-family rental sector could continue into 2025.

📌 Rent vs. Buy: Where Is Homeownership Still Affordable?

As interest rates and home prices continue to impact affordability, renting remains the better financial choice in many cities. The Q4 report identifies the most and least affordable markets for homeownership compared to renting:

Most affordable markets to buy: Miami, Baltimore, and Cleveland—where monthly mortgage costs are closer to rent prices.
Least affordable markets to buy: San Diego, Boston, and Sacramento—where homeownership costs far exceed rental prices.

Get the full breakdown and exclusive insights: Download the complete Q4 2024 Rental Market Report now!

Interested in a specific market? Check out our 14 market reports: