Rentometer National Single-Family Rentals Report: Insights and Trends for 2024

January 20th, 2025

 

Rentometer has published its annual single-family rentals report for 2024, highlighting rent prices and trends for single-family rentals in the U.S. Our report focuses on prices for 3-bedroom single-family homes in 857 cities across the U.S.

Below are the key takeaways from the report.

  • Rent Growth Slows: Average single-family rents rose to $2,357, but annual growth slowed to 0.8%, the smallest increase in years.
  • Vacancies Hit Record Highs: Vacancy rates reached 6% in Q3 2024, the highest in 26 quarters, putting downward pressure on rents.
  • Build-to-Rent Impact: Rent declines in the Sun Belt, including Austin, TX, and Tampa, FL highlight the influence of build-to-rent developments, though this trend may not last.
  • Regional Disparities Persist: Midwest rents grew the fastest (+5.26%), while the Southwest saw a slight decline (-0.09%).
  • Expensive Coastal Markets Dominate: San Francisco led as the most expensive city ($5,265), with California cities dominating high-cost rankings.
  • Affordability in Midwest and South: Toledo, OH ($1,217), and Detroit, MI ($1,308) offer some of the lowest rents among large cities.
  • Mid-Sized and Small City Trends: Cambridge, MA ($5,687), and Newport Beach, CA ($7,316) topped mid-sized and small city rankings for rent prices, reflecting demand in affluent and tech-driven areas.

The rental market is undergoing a noticeable shift, as both apartment rents and the single-family rental segment—which houses 14 million Americans and has outperformed apartment rents over the past couple of years—experience a marked slowdown.

According to Rentometer's latest single-family rental market report, while average rents for single-family homes have continued to rise in the U.S.—reaching $2,357 in 2024—the pace of rent growth has significantly slowed. After sharp increases of 7.1% Y-o-Y in 2022 and 4% Y-o-Y in 2023, rent growth tapered to just 0.8% Y-o-Y in 2024, marking the smallest annual increase in recent years.

 

 

While the beginning of the year signaled another period of strong rent price increases for the single-family rental market, the pace of growth dwindled as the year progressed, ending in negative territory during the last quarter with rents dropping by 0.21% compared to the same period in 2023.
 

SFR Vacancies Reach Highest Level in 26 Quarters, Impacting Prices

While the apartment market has suffered due to a glut of new units coming to market—resulting in high vacancy rates and pricing pressure—these dynamics have also begun to impact single-family rents. According to the latest Census figures, vacancy rates for single-family rentals reached 6% in Q3 2024, the highest figure recorded over the past 26 quarters. Such levels have not been seen since the first quarter of 2018.

 


 

High Regional Disparities in Rent Prices and Growth Rates

Single-family rent price growth in 2024 varied significantly across U.S. regions, highlighting stark disparities in market dynamics. The Midwest led with the highest growth at 5.26%, followed by the Northeast at 4.84%, driven by more affordable markets experiencing steady demand. In contrast, growth in the Pacific (2.12%) and Rocky Mountains (1.75%) was more subdued, reflecting market stabilization in higher-cost regions. The Southeast saw minimal growth at 0.62%, while the Southwest experienced a slight decline (-0.09%), signaling cooling demand in previously high-growth areas. 

In some areas, an influx of build-to-rent homes has further influenced price trends locally. The Sun Belt, which accounts for most of the build-to-rent developments, is home to many of the cities experiencing annual rent declines. Austin, TX, Phoenix, AZ, Tampa, FL, St. Petersburg, FL, and San Antonio, TX have all seen single-family rent prices drop in 2024 compared to 2023.

 

 

While renters may welcome a break from rising rents, some industry voices caution that the surge in build-to-rent inventory is only temporary and has likely peaked. With new deliveries expected to decline in the coming year compared to the previous two years, this could lead to renewed price increases.

While prices have tumbled or slowed down in most of the Sun Belt, many cities in the Northeast and the Midwest, as well as Southern California, have seen strong to very strong price increases. Buffalo, NY, Cleveland, OH, Staten Island, NY, St. Louis, MO, and Louisville, KY have seen some of the strongest price increases for single-family rentals in 2024.

 

 

Most Expensive Large Cities to Rent Single-Family Homes in 2024

Although San Francisco was one of the few large cities where single-family rents have dropped in 2024, the city retains its position as the priciest market for single-family rentals among U.S. cities* with populations over 250,000, with an average rent of $5,265 for a 3-bedroom house in 2024 (*Single-family rentals in New York City are not tracked by Rentometer).

Los Angeles and Irvine followed closely, with average rents of $5,082 and $5,079, respectively. San Diego also featured prominently, with average rents at $4,618.

Outside of California, Boston and Miami were among the top ten, with average rents of $4,161 and $3,996, respectively.

Washington, D.C. ($3,779; 13th) and Seattle, WA ($3,692; 14th) were two other non-California cities ranked just outside the top 10.

 

 

Most Affordable Large Cities to Rent Single-Family Homes

The 2024 rental market underscores significant regional disparities, with single-family home rents in high-cost coastal cities nearly four times higher than in some of the most affordable Midwest and Southern markets.

While wages in high-cost coastal areas are substantially higher, the affordability gap remains stark. In Toledo, OH, the most affordable large city for single-family rentals, the average rent is $1,217—a fraction of San Francisco’s prices. Even when accounting for lower salaries in the Midwest and Southern regions, cities like Detroit, MI ($1,308), Wichita, KS ($1,342), and Fort Wayne, IN ($1,492) offer far greater affordability. For example, Toledo's rent-to-income ratio is significantly lower compared to San Francisco, where a substantial portion of household income is consumed by housing costs.

The stark difference between high-cost coastal markets and affordable Midwest cities emphasizes the importance of location in rental affordability. While residents in cities like San Francisco face significant rent burdens, those in Toledo or Detroit enjoy far greater affordability, highlighting a growing divide in the U.S. rental landscape.

These disparities highlight the growing divide in the U.S. rental landscape, where residents in coastal markets face heavy rent burdens, while those in Midwest and Southern cities enjoy more manageable living costs.
 

 

Top 10 Mid-Sized Cities with Highest Rental Costs

The most expensive mid-sized cities for single-family rentals in 2024 are predominantly education and tech hubs, reflecting strong demand driven by high-income professionals and limited housing supply. Cambridge, MA, home to Harvard and MIT, leads the list with an average rent of $5,687.

California dominates the rankings with cities like Huntington Beach, Glendale, and San Mateo, all benefiting from proximity to tech corridors, entertainment industries, and coastal appeal. These cities’ robust economies, cultural amenities, and desirable locations make them highly sought-after, driving rental prices far above national averages.

 

 

 

Top 10 Mid-Sized Cities with the Most Affordable Rental Costs

The most affordable mid-sized cities for single-family rentals in 2024 are concentrated in the Midwest and South, regions known for their lower cost of living and ample housing supply. Jackson, MS leads as the cheapest market, with an average rent of just $1,197, followed by cities like Akron, OH ($1,244) and Peoria, IL ($1,266). These cities offer affordability without sacrificing livability, as many feature strong community ties, reasonable housing costs, and stable local economies.

Dayton, OH ($1,400) and Cedar Rapids, IA ($1,358) stand out for their family-friendly environments and accessible housing markets, making them attractive options for renters seeking value in 2024. 

 

 

15 Smaller Cities See Average Rents Exceed $6,000, with Two Surpassing $7,000

In 2024, small cities with populations under 100,000 saw remarkably high average rents for single-family homes, particularly in California. Newport Beach, CA topped the list with an average rent of $7,316, followed by Santa Monica, CA ($7,139) and Manhattan Beach, CA ($6,906).

California dominated the rankings, with 10 of the top 12 cities, including tech and affluent hubs like Los Altos ($6,788) and Palo Alto ($6,300). The only non-California city in the top rankings was Miami Beach, FL, with an average rent of $6,567. These figures highlight the premium cost of living in desirable coastal and tech-focused small cities.

 


 

Rent Price Analysis in the Northeast

Single-family rent prices in the Northeast increased by 4.8% in 2024 compared to the prior year, a rate six times higher than the national average. However, as in the rest of the country, price growth has decelerated from the previous year’s 5.8%, though the slowdown was less pronounced compared to other regions.

Yonkers, NY (+11.7%), Buffalo, NY (+10.9%), Erie, PA (+9.7%), Trenton, NJ (+9.5%), and Albany, NY (+9.1%) were among the cities with the highest annual rent increases in the Northeast.

Only a handful of markets in the region saw rent prices decline in 2024, with Springfield, MA (-2%) and Jersey City, NJ (-1.4%) experiencing the largest drops. However, these declines were not significant in absolute terms.

 

 

 

Rent Price Analysis in the Midwest

Single-family rent prices in the Midwest increased by 5.26% year-over-year (Y-o-Y) in 2024, nearly seven times higher than the national average. However, in line with nationwide trends, annual price growth has slowed compared to 2023 (+6.2% Y-o-Y) and 2022 (+12% Y-o-Y).

91% of all Midwest markets analyzed by Rentometer saw price increases in 2024, with many experiencing double-digit growth. Notable examples include Lima, OH (+19.2%), Westland, MI (+17.2%), Green Bay, WI (+16.5%), Davenport, IA (+14.1%), and Flint, MI (+13.4%).

On the other hand, a few Midwest markets experienced rent declines in 2024. South Dakota’s two largest cities, Sioux Falls (-2.27%) and Rapid City (-2.28%), saw decreases, along with several cities in Wisconsin, including Appleton (-4.87%), Beloit (-4.80%), and Madison (-0.45%). Declines were also noted in parts of Indiana and Nebraska.
 

 

 

Rent Price Analysis in the Southeast

Rent prices in the Southeast increased by 0.62% in 2024, below the national average and marking a significant decline from 2023, when single-family rents rose by over 5%.

30% of Southeast markets saw rent prices drop compared to 2023, providing some relief for renters in a region where prices have risen sharply since the pandemic. Notable decreases include Jupiter, FL (-9.5%), Naples, FL (-7.6%), Venice, FL (-7%), and Fort Myers, FL (-6.8%).

Despite these drops, the majority of markets in the Southeast experienced price growth in 2024. Some of the largest increases occurred in Auburn, AL (+11%), Virginia Beach, VA (+10.4%), Alexandria, VA (+9.8%), Jacksonville, AR (+10.1%), and Louisville, KY (+7.8%).
 

 

Rent Price Analysis in the Southwest

Single-family rent prices in the Southwest largely stalled in 2024, declining by 0.1% year-over-year (Y-o-Y) after increasing 2.5% in 2023

39% of Southwest markets analyzed by Rentometer experienced price drops in 2024, the highest percentage of any region. However, most declines were modest, with only a few exceptions, such as Prescott, AZ (-6%) and San Marcos, TX (-5.8%). Among larger and mid-sized cities, notable decreases include Austin, TX (-4.3%), Scottsdale, AZ (-3.9%), and Laredo, TX (-3.8%)

Conversely, several markets saw rent growth, with some reporting double-digit increases. Leading the way were Stillwater, OK (+14.1%), Odessa, TX (+12.0%), and San Angelo, TX (+10.3%).

 

 

Rent Price Analysis in the Rocky Mountains

Rent prices in the Rocky Mountains region increased by 1.75% in 2024, nearly double the nationwide growth average, but slightly below last year’s growth rate of 2.26%.

22% of the markets tracked by Rentometer in the Rocky Mountains experienced price declines in 2024, with the majority concentrated in Montana and Utah. Leading the list were Missoula, MT (-7.1%), Bozeman, MT (-5.5%), Billings, MT (-4.6%), and Kalispell, MT (-3.6%). Declines were also notable in Ogden, UT (-3.2%), Salt Lake City, UT (-1.7%), and St. George, UT (-1.7%).

In contrast, most cities in Colorado, Idaho, and Nevada saw rent increases, with several experiencing significant growth. Some of the largest increases in the region occurred in Carson City, NV (+9.3%), Pocatello, ID (+7.9%), Eagle, ID (+7.8%), and Arvada, CO (+7.8%)

 

 

Rent Price Analysis in the Pacific Region

Rent prices in the Pacific region increased by 2.12% in 2024, nearly three times the national average, but significantly below last year’s growth rate of 3.75%

88% of the markets analyzed by Rentometer in the Pacific region saw rent increases in 2024, with many experiencing substantial growth. Notable gains include Los Altos, CA (+14.1%), Burlingame, CA (+13.3%), Auburn, WA (+10.8%), Walnut Creek, CA (+10.5%), and Hawthorne, CA (+10.4%)

However, several cities experienced rent declines, even in affluent areas. Among these were Palm Desert, CA (-6.9%), San Gabriel, CA (-5.4%), Palm Springs, CA (-5.0%), San Mateo, CA (-4.0%), and Manhattan Beach, CA (-3.5%). These decreases highlight the variability in rent trends across the region, with some cities seeing price corrections after years of steep increases.

 

 

Methodology

The methodology that Rentometer used to complete our nationwide rent price analysis is as follows:

  • Geography: Rental markets in 857 U.S. cities across six regions.

  • Property type: 3-bedroom single-family rentals (SFRs) with all bathroom counts.

  • Analysis: Rent data was analyzed year-over-year for 2024 and 2023.

  • Data: Includes data collected and updated between January 1st and December 31st for 2024 and 2023.

  • Exclusions:

    • Cities with fewer than 25 new or updated rentals within any quarter were excluded.

    • Rentals below $500 (minimum price) or above $10,000 (maximum price) were excluded.

 

About Rentometer

Rentometer is a Massachusetts-based company that has been providing investors and real estate professionals with rent estimates and comps for over 15 years. Our company collects and analyzes over 10 million new rental records each year, which form the basis of our market reports.

For over the past two years, Rentometer has closely tracked and reported on three-bedroom single-family home rentals. Single-family home rentals house 41% of the U.S. renter population, and three-bedroom single-family homes are a preferred option for many families and investors.

Rentometer was founded by two seasoned real estate entrepreneurs:

Mike Lapsley is a proptech veteran with over 25 years of experience in the rental housing industry. Prior to Rentometer, he was the CEO of RentGrow, a leader in automated resident screening systems, which was successfully acquired by Yardi Systems. Mike holds a BS in Business Management and Accounting from the University of Lowell.

Torrence C. Harder has over forty years of experience investing in entrepreneurial companies. He founded Harder Management Company, Inc., which has founded and ventured sixteen companies. Torrey holds a BA with Honors from Cornell University and an MBA with Honors from the Wharton School of the University of Pennsylvania.

 

Transform Data into Decisions with Rentometer

Rentometer provides hyperlocal, accurate rental data that helps you move forward with confidence. Make data-driven real estate decisions today!

Get Started

 

View previous quarterly reports.

 

 

Please note, the research and data included in this report is aggregated from a variety of sources and many are third parties that are not affiliated with Rentometer, Inc. The information is believed to be accurate, but Rentometer, Inc. does not provide a warranty of any kind, either expressed or implied.