Rents across the nation continued their decline for the 17th consecutive month in December, falling 1.1% year-over-year (YOY) to a median of $1,695, according to the latest Realtor.com® Rental Report.
This marked the first time since April 2022 that the national median asking rent dipped below $1,700. However, in the Northeast — especially in the Greater Meadowlands Region and across New Jersey — the rental market is bucking the downward trend.
The report highlights the impact of robust multifamily construction, which has cooled rental prices in many regions. But New Jersey, as part of the New York-Newark-Jersey City metro area, has seen a different pattern, with rents surging by 5.3% YOY to a median of $2,967 for zero- to two-bedroom units. This growth makes the area a standout in the national rental landscape.
Northeast Market Remains Hot
According to Realtor.com®’s data, the Northeast had the highest absorption rates in the third quarter of 2024, meaning new rental units filled quickly. Absorption rates in the region rose from 58% to 67% YOY, suggesting ongoing demand despite new construction.
Danielle Hale, chief economist at Realtor.com®, noted that the rental market is stabilizing nationwide. “We are reaping the benefits of the multi-family surge in housing starts that lasted throughout 2023,” Hale said. “For renters, balance is welcome and signals an end to the pandemic-era rental market spikes.”
Yet in New Jersey, the demand for rental housing — particularly in urban centers and areas with convenient transit access to New York City — remains strong. This aligns with the Northeast’s unique position as the only region to see increasing absorption rates.
Affordable Housing Still in High Demand
The nationwide data indicates a growing appetite for affordable rentals. Across the U.S., affordable apartments had a higher absorption rate (56.3%) compared to more expensive units (53.8%).
In New Jersey, this trend is particularly evident, as demand for reasonably priced options outpaces supply, leaving many renters competing for limited units.
Nationwide Trends Contrast with New Jersey’s Market
While Western markets like Denver (-5.9%), Riverside, Calif. (-4.8%), and San Francisco (-4.3%) experienced sharp declines in rent, New Jersey’s upward trend is consistent with the Northeast’s resilience.
Across the 50 largest metro areas, New Jersey’s rent growth was among the highest, reflecting the region’s desirability and economic strength.
Despite this, New Jersey renters face challenges common throughout the nation. The cost of renting has risen more slowly than inflation since 2019 (16% vs. 22.8%), but the cumulative increases in the state’s urban areas have made affordability a persistent issue.
Looking Ahead
With the pipeline of new rental units slowing in 2024, real estate professionals anticipate a return to a more balanced market in 2025. In high demand areas with close proximity to major employment hubs — like much of New Jersey — prices are forecasted to remain elevated.
Renters in the Garden State face a lot of competition for affordable rental units. There is a great need for continued development, particularly in suburban and transit-friendly areas. As the state grapples with these dynamics, it remains a focal point of the national conversation on housing affordability and supply.
Click here for the full Realtor.com® Rental Report.
Table One: National Rents by Unit Size
| Unit Size | Median Rent | Rent YoY | Rent Change – 5 Years |
| Overall | $1,695 | -1.1 % | 16.0 % |
| Studio | $1,419 | -1.3 % | 11.3 % |
| 1-Bedroom | $1,579 | -0.9 % | 15.9 % |
| 2-Bedroom | $1,880 | -0.9 % | 19.8 % |
Table Two: Rental Data–50 Largest Metropolitan Areas–December 2024
| Metro | Median Rent (0-2 Bedrooms) | YoY Change (0-2 Bedrooms |
| Atlanta-Sandy Springs-Alpharetta, GA | $ 1,571 | -2.9 % |
| Austin-Round Rock-Georgetown, TX | $ 1,469 | -5.0 % |
| Baltimore-Columbia-Towson, MD | $ 1,794 | -0.4 % |
| Birmingham-Hoover, AL | $ 1,216 | -2.4 % |
| Boston-Cambridge-Newton, MA-NH | $ 2,940 | -0.5 % |
| Buffalo-Cheektowaga, NY | NA | NA |
| Charlotte-Concord-Gastonia, NC-SC | $ 1,519 | -2.2 % |
| Chicago-Naperville-Elgin, IL-IN-WI | $ 1,785 | -2.8 % |
| Cincinnati, OH-KY-IN | $ 1,336 | 0.5 % |
| Cleveland-Elyria, OH | $ 1,184 | -3.4 % |
| Columbus, OH | $ 1,186 | 0.7 % |
| Dallas-Fort Worth-Arlington, TX | $ 1,445 | -4.1 % |
| Denver-Aurora-Lakewood, CO | $ 1,799 | -5.9 % |
| Detroit-Warren-Dearborn, MI | $ 1,309 | -0.2 % |
| Hartford-East Hartford-Middletown, CT | NA | NA |
| Houston-The Woodlands-Sugar Land, TX | $ 1,363 | -2.3 % |
| Indianapolis-Carmel-Anderson, IN | $ 1,286 | -0.5 % |
| Jacksonville, FL | $ 1,515 | -1.0 % |
| Kansas City, MO-KS | $ 1,348 | 3.1 % |
| Las Vegas-Henderson-Paradise, NV | $ 1,468 | -1.4 % |
| Los Angeles-Long Beach-Anaheim, CA | $ 2,750 | -2.7 % |
| Louisville/Jefferson County, KY-IN | $ 1,258 | 1.2 % |
| Memphis, TN-MS-AR | $ 1,174 | -6.7 % |
| Miami-Fort Lauderdale-Pompano Beach, FL | $ 2,344 | -1.0 % |
| Milwaukee-Waukesha, WI | $ 1,593 | -1.2 % |
| Minneapolis-St. Paul-Bloomington, MN-WI | $ 1,510 | 0.2 % |
| Nashville-Davidson–Murfreesboro–Franklin, TN | $ 1,536 | -4.4 % |
| New Orleans-Metairie, LA | NA | NA |
| New York-Newark-Jersey City, NY-NJ-PA | $ 2,967 | 5.3 % |
| Oklahoma City, OK | $ 1,015 | 1.3 % |
| Orlando-Kissimmee-Sanford, FL | $ 1,674 | -0.6 % |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $ 1,760 | -1.0 % |
| Phoenix-Mesa-Chandler, AZ | $ 1,491 | -3.9 % |
| Pittsburgh, PA | $ 1,437 | -0.2 % |
| Portland-Vancouver-Hillsboro, OR-WA | $ 1,674 | 1.0 % |
| Providence-Warwick, RI-MA | NA | NA |
| Raleigh-Cary, NC | $ 1,491 | -2.4 % |
| Richmond, VA | $ 1,480 | -0.8 % |
| Riverside-San Bernardino-Ontario, CA | $ 2,076 | -4.8 % |
| Rochester, NY | NA | NA |
| Sacramento-Roseville-Folsom, CA | $ 1,883 | 1.2 % |
| San Antonio-New Braunfels, TX | $ 1,236 | -3.1 % |
| San Diego-Chula Vista-Carlsbad, CA | $ 2,702 | -4.2 % |
| San Francisco-Oakland-Berkeley, CA | $ 2,715 | -4.3 % |
| San Jose-Sunnyvale-Santa Clara, CA | $ 3,305 | 3.3 % |
| Seattle-Tacoma-Bellevue, WA | $ 1,963 | -1.3 % |
| St. Louis, MO-IL | $ 1,317 | 1.3 % |
| Tampa-St. Petersburg-Clearwater, FL | $ 1,711 | -1.6 % |
| Virginia Beach-Norfolk-Newport News, VA-NC | $ 1,497 | -0.8 % |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | $ 2,244 | 2.1 % |
Methodology
Rental data as of December 2024 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
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