A new analysis of U.S. Census Bureau figures by real estate company Redfin has found that 49 percent of newly built apartments completed in the last quarter of 2024 hadn’t been rented out within three months, the fifth quarter in a row this figure was below 50 percent.
Newsweek has contacted the Department of Housing and Urban Development via email for comment.
Why It Matters
A near record number of new apartments were completed in the fourth quarter of 2024, which coincided with a year-on-year rent fall of 1 percent in April 2025, according to Redfin.
This suggests a surge in building has provided some relief to renters, but the latest figures could concern developers looking to sell properties.
What To Know
Redfin’s analysis of Census Bureau data found 49 percent of newly built apartments that were completed between October and December 2024 hadn’t been rented out three months later, a slight rise on the 47 percent recorded for the third quarter of 2024.
Notably, this was the fifth consecutive quarter that the rental adoption rate for newly built apartments was below 49 percent with Redfin saying the market is continuing to “lag behind pre-pandemic norms.”
For one- and two-bedroom apartments, 44 percent of the newbuilds had been rented out within three months, compared to larger three-bedroom-plus apartments where the figure was 53 percent.
The analysis also concluded that the vacancy rate for buildings up for rent with five or more units was 8.2 percent in the first quarter of 2025, which tied with the fourth quarter of 2024 as the highest figure since 2021.
Barry Winiker/GETTY
According to Redfin, just under 125,000 new apartments were completed in the fourth quarter of 2024, just down on the all-time high of 142,900 recorded in the previous quarter.
However, multifamily construction permit approvals fell to pre-pandemic levels, “indicating that new apartment supply will start to taper off in coming months.”
Separately, Redfin data showed the U.S. housing market has 500,000 more sellers than buyers, the highest level since the company began keeping data in 2013.
Pending luxury home sales fell nearly 10 percent in April year-on-year, according to the realtor.
Data from property management company Evernest found Minnesota is the only state where more than half of residents aged under 35 own their own homes.
What People Are Saying
Redfin senior economist Sheharyar Bokhari said: “Renters are in a relatively rare position where they can finally benefit from market conditions rather than scramble to keep up with them.
“With more apartments available, renters can afford to be a little more picky about where they want to live and are in a stronger position to negotiate for concessions like flexible lease terms, lower rents or free parking.”
What Happens Next
Redfin suggested that the fall in multifamily construction permit approvals means the rate of supply will decrease in the coming months, potentially putting upward pressure on rents.