After years of steep price increases, renters are finally seeing sustained price relief, a trend that looks set to continue into early 2026.
According to property data from Realtor.com, the median asking rent in the 50 largest U.S. metropolitan areas was $1,693 in November, down about 1% from the same month last year and marking the 28th consecutive month of year-over-year declines. The national median rent fell 1.1% from a year ago to $1,367, according to Apartment List data.
According to Apartment List, November is typically the slowest month for rentals, but the decline in rents from October to November this year was greater than the same period last year.
Rents are expected to remain low until 2026 as new apartment supply remains on the market.
“Barring a major economic shock, 2026 looks like it will be the most renter-friendly period in a decade,” said Michelle Griffith, a luxury real estate broker at Douglas Elliman.
Why are rents falling?
The rent relief came in response to a sharp rise in prices at the beginning of the decade.
One- and two-bedroom rental prices rose more than 12% annually from mid-2021 to mid-2022 as demand increased, according to Realtor.com data. Since early 2023, rent growth has turned negative as the supply of new apartments on the market has surged.
According to Apartment List, more than 600,000 new apartment buildings (usually large managed apartment buildings) will be completed across the country in 2024, the most in a single year since the 1980s.
These buildings, where a surge in supply is forcing landlords to compete for tenants, are seeing the biggest rent reductions.
“You’re seeing price competition within buildings, longer days on market, and multiple price reductions just to increase foot traffic,” said Jaclyn Bildt, a real estate brokerage associate at Douglas Elliman.
Prices for single-family homes and luxury rentals have remained relatively stable, and demand remains relatively strong, she said.
Areas where rents are decreasing the most
Rent relief is not uniform, as terms vary widely from market to market. The steepest declines have occurred in the fast-growing Sunbelt and Inland West metros, particularly Austin, as new housing supply has surged in recent years.
According to Realtor.com, using data from the 50 largest U.S. metropolitan areas, these 10 cities had the steepest year-over-year declines in median asking rents in November.
Austin – Round Rock – San Marcos, Texas: −6.6% Denver – Aurora – Centennial, Colorado: –4.8% Birmingham, Alabama: –4.6% Jacksonville, Florida: –4.2% Phoenix – Mesa – Chandler, Arizona: –4.0% San Diego – Chula Vista – Carlsbad, California: -3.5% Las Vegas to Henderson to North Las Vegas, NV: -3.0% Houston to Pasadena to The Woodlands, TX: -2.7% Miami to Fort Lauderdale to West Palm Beach, FL: -2.7% San Antonio to New Braunfels, TX: -2.7%
Although rents remain well above pre-pandemic levels, momentum is shifting in many markets.
With high vacancy rates and a wave of new apartments still coming onto the market, rent increases are expected to remain limited until early 2026, with prices not expected to recover quickly and level off by the end of the year, according to Apartment List.
“Rather than assuming the asking rent is fixed, now is a good time to negotiate,” says Griffiths. “Landlords are much more willing to offer concessions, flexible lease terms, or small rent reductions than they were a year ago. Locking in leases during periods of high supply, especially in late winter and early spring, can help ensure costs are secured before demand picks up again.”
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