Newly built apartments are filling up at a slower pace, according to a recent report from Redfin. According to new data, just 47 percent of newly constructed apartments completed in the fourth quarter were rented within three months. This a 60 percent drop from 2023 and the lowest rate since 2020.

“If you’re looking for a rental, and you’ve noticed a lot of new apartments popping up in your neighborhood, it may mean you have room to negotiate on price or ask for concessions like discounted parking or a free month’s rent,” said Redfin senior economist Sheharyar Bokhari. Redfin stated that the slump may be due to a record number of apartments available for rent on the market. In the fourth quarter, 90,260 were completed, the second highest since 2012.

For the past three quarters, Redfin said, the rental vacancy rate has hovered at 6.6 percent, the highest vacancy rate since 2021. This has created an overall decline in new building starts, which have reached a 10-year historical low.

It has also significantly impacted the rent a landlord can ask, with Redfin stating that demand from renters who can’t afford to buy their own homes is keeping rents near their record high rates.

In May, the median rent for an apartment in the U.S. rose 0.8 percent compared with last year, the highest level since October 2022. To afford a space, renters must earn $66,120, according to Redfin. This is $11,408 more than the average renter earns.

“If you live in an area where the supply of new apartments is limited, deals may be harder to come by. Building more housing is a tried-and-true way to ease the housing affordability crisis, and with rent and home prices at historic highs, local and federal leaders should continue to encourage more construction,” said Bokhari.

According to Redfin, the supply of small apartments in America has been growing quickly, resulting in the steepest rent declines. The number of studio apartments completed in the fourth quarter was up 32.6 percent from a year earlier, compared with a 22.2 percent increase for one-bedroom apartments. There was a 2.3 percent increase for two-bedroom apartments and a 0.9 percent decrease for three-plus-bedroom apartments.

Redfin noted that apartment construction in America tends to skew toward single people, with many builders deterred from focusing on families.