Gunfire could be heard around the city centre, and security forces allied to the Houthis have taken over the international airport.
The rebels have made rapid gains since seizing a key airbase only 60km (37 miles) from Aden on Wednesday morning.
Government officials deny reports that the president has fled the country, and say he remains in Aden.
The US State Department says it was in touch with President Hadi earlier in the day. It said he is no longer at the compound but could not confirm any “additional details” about his location.
State television, which is controlled by the rebels, announced a reward of 20m Yemeni riyals ($93,000; £62,500) for anyone who captures the “fugitive” president.
Is there anything more comforting in these troubled times than assurances from our State Dept. that all is not as bad as it seems in a conflict-ridden region (pick one)?
If this were a Republican adminstration, the MSM would be competing to see how many “He called this a SUCCESS!” stories they could get out there each day. With this president, it’s like they’re all given daily hits of the memory zapper from the “Men In Black” series.
Oh, in case you need a real world barometer to counter the official news from our government, the rebels running roughshod over Yemen are backed by Iran.