Rents are falling in these major U.S. cities heading into 2026—one of the more 'renter-friendly periods' in a decade, says expert

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Rents are falling in these major U.S. cities heading into 2026—one of the more 'renter-friendly periods' in a decade, says expert

Published Fri, Dec 26 2025

11:53 AM EST

Updated 29 Min Ago

thumbnailMike Winters@mike_wintrs

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After years of steep increases, renters are finally seeing sustained price relief, a trend that appears to be carrying into early 2026.

In November, the median asking rent across the 50 largest U.S. metro areas was $1,693, down about 1% from a year earlier and marking the 28th consecutive month of year-over-year declines, according to Realtor.com listings data. Nationally, the median rent fell to $1,367, down 1.1% from a year earlier, according to Apartment List's data.

November is typically the slowest month for rentals, but rents fell more from October to November this year than they did over the same period last year, according to Apartment List.

With new apartment supply still hitting the market, rents are expected to remain lower into 2026.

"Barring a major economic shock, 2026 is shaping up to be one of the more renter-friendly periods we've seen in a decade," says Michelle Griffith, a luxury real estate broker at Douglas Elliman.

Why rents are cooling

Rent relief comes after a sharp run-up in prices earlier in the decade.

Prices for one- and two-bedroom rentals were rising at an annual pace above 12% in mid-2021 and mid-2022 amid high demand, according to Realtor.com data. Since early 2023, rent growth has turned negative as a surge of new apartment supply entered the market.

In 2024, more than 600,000 new multifamily apartment units — typically large, managed apartment buildings — were completed nationwide, the most in a single year since the 1980s, according to Apartment List.

The biggest rent cuts have shown up in these buildings, where the surge of supply has forced landlords to compete for tenants.

"We're seeing price wars within buildings, longer days on market, and the need for multiple price reductions just to generate foot traffic," says Jaclyn Bild, a real estate broker associate at Douglas Elliman.

Prices for detached homes and higher-end rentals have held more steady, with demand remaining relatively strong, she says.

Where rents are falling the most

Rent relief hasn't been uniform, as conditions vary widely by market. The sharpest declines have occurred in fast-growing Sun Belt and interior Western metros with a surge in new housing supply in recent years—especially Austin.

These 10 cities recorded some of the steepest year-over-year drops in median asking rent in November, using data for the 50 largest U.S. metro areas, according to Realtor.com.

  1. Austin–Round Rock–San Marcos, Texas: −6.6%
  2. Denver–Aurora–Centennial, Colorado: −4.8%
  3. Birmingham, Alabama: −4.6%
  4. Jacksonville, Florida: −4.2%
  5. Phoenix–Mesa–Chandler, Arizona: −4.0%
  6. San Diego–Chula Vista–Carlsbad, California: −3.5%
  7. Las Vegas–Henderson–North Las Vegas, Nevada: −3.0%
  8. Houston–Pasadena–The Woodlands, Texas: −2.7%
  9. Miami–Fort Lauderdale–West Palm Beach, Florida: −2.7%
  10. San Antonio–New Braunfels, Texas: −2.7%

While rents remain well above pre-pandemic levels, the momentum has shifted in many markets.

High vacancies and a wave of new apartments still coming onto the market are expected to keep rent growth limited into early 2026, with prices leveling off later in the year rather than rebounding quickly, according to Apartment List.

"This is a good time to negotiate rather than assume the asking rent is fixed," says Griffith. "Landlords are far more open to concessions, flexible lease terms, or modest rent reductions than they were even a year ago. Locking in a lease during periods of elevated supply, especially in late winter or early spring, can provide cost certainty before demand picks up again."

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