Fewer Multifamily Permits Today Could Mean Costlier Rents Ahead
Realtor.com's February rent report reveals that despite declining rents in top 50 metros, lower multifamily permitting activity could lead to future rent increases. Only 294,000 multifamily units were permitted in 2024, down from 318,000 during the pandemic peak in 2020.
Nine metros, including New York, Kansas City, and Detroit, showed lower multifamily permitting and rising rents. Conversely, cities like Birmingham, Cincinnati, and Cleveland saw increased permitting and declining rents. In federal employment hotspots, rent trends vary, with Washington D.C. up 3.3% year-over-year, while San Diego experienced a 6% decline.
The report highlights that larger rental units maintain strong demand, with 2-bedroom units showing 18.3% growth over five years, compared to 14.3% for 1-bedroom and 9.7% for studio units. Currently, all unit types show slight year-over-year declines around -0.7% to -0.8% as of February 2025.
Il rapporto sugli affitti di Realtor.com di febbraio rivela che, nonostante il calo degli affitti nelle prime 50 aree metropolitane, una minore attività di autorizzazione per edifici multifamiliari potrebbe portare a futuri aumenti degli affitti. Solo 294.000 unità multifamiliari sono state autorizzate nel 2024, in calo rispetto alle 318.000 durante il picco pandemico nel 2020.
Nove aree metropolitane, tra cui New York, Kansas City e Detroit, hanno mostrato una diminuzione delle autorizzazioni multifamiliari e un aumento degli affitti. Al contrario, città come Birmingham, Cincinnati e Cleveland hanno visto un aumento delle autorizzazioni e un calo degli affitti. Negli hotspot dell'occupazione federale, le tendenze degli affitti variano, con Washington D.C. in aumento del 3,3% su base annua, mentre San Diego ha registrato un calo del 6%.
Il rapporto evidenzia che le unità in affitto più grandi mantengono una forte domanda, con le unità da 2 camere che mostrano una crescita del 18,3% negli ultimi cinque anni, rispetto al 14,3% per le unità da 1 camera e al 9,7% per le unità studio. Attualmente, tutti i tipi di unità mostrano lievi cali su base annua intorno al -0,7% e -0,8% a febbraio 2025.
El informe de alquileres de Realtor.com de febrero revela que, a pesar de la disminución de los alquileres en las 50 principales áreas metropolitanas, una menor actividad de permisos para multifamiliares podría llevar a futuros aumentos en los alquileres. Solo se permitieron 294,000 unidades multifamiliares en 2024, en comparación con las 318,000 durante el pico de la pandemia en 2020.
Nueve áreas metropolitanas, incluyendo Nueva York, Kansas City y Detroit, mostraron una disminución en los permisos multifamiliares y un aumento en los alquileres. Por el contrario, ciudades como Birmingham, Cincinnati y Cleveland vieron un aumento en los permisos y una disminución en los alquileres. En los puntos calientes de empleo federal, las tendencias de alquiler varían, con Washington D.C. aumentando un 3.3% interanual, mientras que San Diego experimentó una disminución del 6%.
El informe destaca que las unidades de alquiler más grandes mantienen una fuerte demanda, con unidades de 2 habitaciones mostrando un crecimiento del 18.3% en cinco años, en comparación con el 14.3% para las unidades de 1 habitación y el 9.7% para las unidades estudio. Actualmente, todos los tipos de unidades muestran ligeras disminuciones interanuales en torno al -0.7% a -0.8% a partir de febrero de 2025.
Realtor.com의 2월 임대 보고서는 주요 50개 대도시에서 임대료가 하락하고 있음에도 불구하고, 다세대 주택 허가 활동이 감소하면 미래에 임대료가 상승할 수 있음을 보여줍니다. 2024년에는 294,000개의 다세대 주택이 허가되었으며, 이는 2020년 팬데믹 정점에서의 318,000개에 비해 감소한 수치입니다.
뉴욕, 캔자스시티, 디트로이트를 포함한 아홉 개 대도시는 다세대 주택 허가가 줄어들고 임대료는 상승하는 모습을 보였습니다. 반면, 버밍햄, 신시내티, 클리블랜드와 같은 도시는 허가가 증가하고 임대료는 하락했습니다. 연방 고용 중심지에서는 임대 트렌드가 다양하여, 워싱턴 D.C.는 전년 대비 3.3% 상승했지만 샌디에고는 6% 하락했습니다.
보고서는 대형 임대 유닛이 강한 수요를 유지하고 있다고 강조하며, 2베드룸 유닛은 5년 동안 18.3% 성장했으며, 1베드룸은 14.3%, 스튜디오는 9.7% 성장했습니다. 현재 모든 유닛 유형은 2025년 2월 기준으로 전년 대비 약 -0.7%에서 -0.8%의 소폭 감소를 보이고 있습니다.
Le rapport sur les loyers de Realtor.com pour février révèle que, malgré la baisse des loyers dans les 50 plus grandes métropoles, une activité de permis multifamiliaux plus faible pourrait entraîner des augmentations futures des loyers. En 2024, seulement 294 000 unités multifamiliales ont été autorisées, contre 318 000 au plus fort de la pandémie en 2020.
Neuf métropoles, dont New York, Kansas City et Detroit, ont montré une baisse des permis multifamiliaux et une augmentation des loyers. En revanche, des villes comme Birmingham, Cincinnati et Cleveland ont vu une augmentation des permis et une baisse des loyers. Dans les points chauds de l'emploi fédéral, les tendances des loyers varient, Washington D.C. ayant augmenté de 3,3 % d'une année sur l'autre, tandis que San Diego a connu une baisse de 6 %.
Le rapport souligne que les grandes unités de location maintiennent une forte demande, les unités de 2 chambres affichant une croissance de 18,3 % sur cinq ans, contre 14,3 % pour les unités d'une chambre et 9,7 % pour les studios. Actuellement, tous les types d'unités montrent de légers déclins d'une année sur l'autre d'environ -0,7 % à -0,8 % en février 2025.
Der Mietbericht von Realtor.com für Februar zeigt, dass trotz sinkender Mieten in den 50 größten Metropolregionen eine geringere Genehmigungsaktivität für Mehrfamilienhäuser zu zukünftigen Mieterhöhungen führen könnte. Im Jahr 2024 wurden nur 294.000 Mehrfamilienhäuser genehmigt, ein Rückgang von 318.000 während des pandemischen Höchststands im Jahr 2020.
Neun Metros, darunter New York, Kansas City und Detroit, zeigten niedrigere Genehmigungen für Mehrfamilienhäuser und steigende Mieten. Im Gegensatz dazu verzeichneten Städte wie Birmingham, Cincinnati und Cleveland steigende Genehmigungen und sinkende Mieten. In Bundesbeschäftigungshotspots variieren die Miettrends, wobei Washington D.C. im Jahresvergleich um 3,3% gestiegen ist, während San Diego einen Rückgang von 6% erlebte.
Der Bericht hebt hervor, dass größere Mietwohnungen eine starke Nachfrage aufrechterhalten, wobei 2-Zimmer-Wohnungen in den letzten fünf Jahren um 18,3% gewachsen sind, im Vergleich zu 14,3% für 1-Zimmer-Wohnungen und 9,7% für Studioeinheiten. Derzeit zeigen alle Wohnungstypen im Februar 2025 einen leichten Rückgang von etwa -0,7% bis -0,8% im Jahresvergleich.
- Larger rental units show strong long-term growth with 2-bedroom units up 18.3% over 5 years
- Some markets like Birmingham show healthy supply growth with 22.1% increase in permits
- Federal employment centers maintain stable rental demand with Washington D.C. up 3.3% YoY
- Multifamily permits dropped to 294,000 units in 2024, below pandemic peak of 318,000
- Nine major metros face supply constraints due to lower permitting activity
- National housing shortage of 3.8 million homes could pressure future rent growth
- Current rental market shows declining rates across all unit types (-0.7% to -0.8% YoY)
Insights
Realtor.com's February rent report reveals a potential inflection point in the rental market that could benefit News Corp's digital real estate services segment. After 19 consecutive months of declining rents across top 50 metros, the significant drop in multifamily permitting activity (294,000 units in 2024 vs. 318,000 during pandemic peak) signals future supply constraints that could reverse the rental price trajectory.
The report identifies nine major metros including New York, Washington D.C., and Boston already experiencing rent increases despite lower permitting activity - creating a leading indicator of markets where Realtor.com could see increased listing activity and potential revenue growth. Conversely, markets with higher permitting levels like Birmingham (-5.4% YoY rent) show continued downward pressure on rents.
For News Corp investors, this data represents valuable market intelligence from their Realtor.com subsidiary demonstrating the platform's analytical capabilities while highlighting potential growth opportunities. The identified trend of sustained demand for larger rental units (2-bedrooms showing 18.3% five-year growth vs. 9.7% for studios) further supports Realtor.com's value proposition as renters stay put longer in the current high-rate environment.
This market analysis strengthens NWSA's position as a data-driven leader in digital real estate services, potentially supporting user engagement and advertiser value across their platforms.
This report highlights a important supply-demand imbalance developing in the rental market that carries mixed implications for News Corp's digital real estate portfolio. The 3.8 million home shortage cited by Realtor.com combined with the notable decline in multifamily permitting creates conditions for a potential rental price rebound – especially in supply-constrained markets.
The data reveals a clear correlation between permitting activity and rent trajectories across major metros. Markets like Detroit showing both restricted supply and rising rents represent prime areas where News Corp's platforms could capitalize on increased listing views, higher user engagement, and stronger advertiser interest. The report effectively validates Realtor.com's data infrastructure and analytical capabilities.
Particularly noteworthy is the sustained demand for larger rental units, with 2-bedroom units maintaining 18.3% five-year growth compared to studios at 9.7%. This extended tenant lifecycle directly benefits News Corp's digital platforms through longer listing durations and customer retention.
While current rent trends appear negative (-0.7% YoY for 1-2 bedrooms), the permitting data suggests this represents a temporary phase rather than a secular trend. For News Corp, this positions their digital real estate services for potential growth as the rental market reaches an inflection point, providing a valuable competitive edge through Realtor.com's comprehensive market intelligence.
- Rent jumps are expected in: New York, N.Y.,
Kansas City, Mo. ,Detroit, Mich. ,Washington D.C. ,San Jose, Calif. ,Baltimore, Md. ,Boston ,St. Louis andCharlotte, N.C. - Federal employment hot spots show no sign of meaningful impact from federal layoffs… yet
"During the pandemic, rent prices surged significantly. While there has been a gradual correction, the current trend of declining rents over the past 19 months and a still-sizable number of multi-family units under construction have impacted builders' enthusiasm for new projects," said Danielle Hale, Chief Economist of Realtor.com®. "The nation is short 3.8 million homes according to Realtor.com® research. As builders attempt to right-size their construction pipelines amid shifting economic and policy cross currents, multifamily builders nationwide have made headway, evidenced by vacancy rates trending up. Still, the shortfall varies by market and region. The low level of permitting for multifamily housing, particularly in markets where rents are still climbing, may become a catalyst for future rent growth."
When Supply is in a Pinch, Rent Will Rise
In hot markets where demand is high, and rent is already growing, low levels of multifamily housing permitting will cause further supply constraints and could make rents go up even higher in the future. For nine of the top 50 metros, multifamily permitting was lower than recent history in 2024, and these places experienced a rise in rent, including
Hot Markets Where Rent is Poised To Grow as Permits Decline | ||
Metro | Rent Increase | Multifamily Permits vs 5-year Baseline |
6.80 % | -9.50 % | |
6.00 % | -6.00 % | |
3.60 % | -11.60 % | |
3.30 % | -35.00 % | |
1.30 % | -51.00 % | |
1.20 % | -22.60 % | |
0.70 % | -22.30 % | |
0.30 % | -27.30 % | |
0.20 % | -19.00 % | |
On the other hand, nine of the top 50 metros saw more multifamily permitting in 2024 than over the previous five years and experienced rent price declines YoY including
Federal Layoffs Haven't Affected Rent Prices…Yet
While data shows changes starting to happen in the for-sale markets of the major metros where federal employment is high, the rental shifts in these markets are relatively varied and show no meaningful changes, yet. Within the five major metros with the highest concentration of federally-employed workers rent is up
Larger Rental Units Maintain Demand as Renters Stay Put
As fewer renters turn into first-time home buyers, demand for larger rental units remains high, with 2-bedroom units seeing the most long-term rent growth over the last five years, at
While studio units tend to experience more volatility in activity, this month rent growth for studio units dipped slightly at -
National Rental Data – February 2025 | |||
Unit Size | Median Rent | Rent YoY | Rent Change - 5 Years |
Overall | -0.9 % | 14.4 % | |
Studio | -0.8 % | 9.7 % | |
1-Bedroom | -0.7 % | 14.3 % | |
2-Bedroom | -0.7 % | 18.3 % | |
50 Largest Metropolitan Areas – February 2025 | ||||
Metro | Median | YoY | Multifamily | Multifamily |
1,573 | -2.6 % | 13937 | 31.5 % | |
1,462 | -4.8 % | 15008 | -26.5 % | |
1,795 | 1.2 % | 2425 | -22.6 % | |
1,165 | -5.4 % | 556 | 22.1 % | |
2,936 | 0.7 % | 7022 | -22.3 % | |
NA | NA | 563 | 18.2 % | |
1,520 | 0.2 % | 6847 | -19.0 % | |
1,776 | -2.1 % | 7403 | 1.4 % | |
1,293 | -3.3 % | 2534 | 29.9 % | |
1,170 | -3.0 % | 720 | 37.9 % | |
1,198 | 1.1 % | 7195 | 32.7 % | |
1,461 | -2.0 % | 22912 | -6.6 % | |
1,773 | -6.4 % | 6505 | -41.8 % | |
1,320 | 3.6 % | 2023 | -11.6 % | |
NA | NA | 1488 | 89.2 % | |
1,368 | -0.9 % | 11520 | -44.3 % | |
1,284 | -2.1 % | 2314 | -32.5 % | |
1,508 | -1.3 % | 1753 | -69.6 % | |
1,370 | 6.0 % | 3663 | -6.0 % | |
1,448 | -2.4 % | 2301 | -29.7 % | |
2,715 | -2.5 % | 13265 | -25.7 % | |
1,223 | -1.2 % | 1854 | -10.0 % | |
1,184 | -1.4 % | 1089 | 39.5 % | |
2,319 | -2.2 % | 10035 | -28.6 % | |
1,642 | 1.3 % | 1884 | 101.3 % | |
1,498 | -0.2 % | 5055 | -59.6 % | |
1,525 | -1.7 % | 5384 | -52.0 % | |
NA | NA | 287 | -47.3 % | |
2,977 | 6.8 % | 42230 | -9.5 % | |
1,027 | 2.0 % | 581 | 90.4 % | |
1,673 | 0.0 % | 8210 | -18.8 % | |
1,751 | -0.3 % | 5054 | -49.4 % | |
1,492 | -3.1 % | 13577 | -13.9 % | |
1,440 | 0.6 % | 1738 | 2.3 % | |
1,649 | -2.7 % | 2696 | -58.5 % | |
NA | NA | 656 | 175.4 % | |
1,458 | -3.5 % | 5574 | -12.8 % | |
1,477 | 0.0 % | 3408 | -14.0 % | |
2,071 | -3.6 % | 3012 | -20.9 % | |
NA | NA | 750 | -8.9 % | |
1,883 | -0.2 % | 2701 | -8.2 % | |
1,240 | -1.3 % | 3803 | -54.1 % | |
2,667 | -6.0 % | 7244 | 18.8 % | |
2,678 | -3.3 % | 2929 | -60.4 % | |
3,300 | 1.3 % | 1886 | -51.0 % | |
1,957 | -0.8 % | 9880 | -36.1 % | |
1,304 | 0.3 % | 1821 | -27.3 % | |
1,739 | -0.4 % | 7545 | -9.0 % | |
1,487 | -1.5 % | 1250 | -42.8 % | |
2,283 | 3.3 % | 9680 | -35.0 % | |
Methodology
Rental data as of January 2025 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. Construction permitting data comes from the Census Bureau Building Permits Survey.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media Contact: Asees Singh, press@realtor.com
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SOURCE Realtor.com
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