Rents are falling in these major U.S. cities heading into 2026
After years of steep increases, renters are finally seeing permanent price relief; This trend looks set to continue until early 2026.
In November, the average rental asking price in the 50 largest U.S. metro areas was $1,693; This marked the 28th consecutive month of annual declines, down nearly 1% from a year ago. Realtor.com listing data. According to the report, the average rent across the country decreased by 1.1% compared to the previous year, falling to $1,367. Data of the Apartment List.
While November is typically the slowest month for rentals, rents fell more from October to November this year than they did during the same period last year, according to Apartment List.
Rents are expected to remain low into 2026, with new apartment supply still coming to market.
“Barring a major economic shock, 2026 is poised to be one of the most renter-friendly periods we’ve seen in the last decade,” says Michelle Griffith, a luxury real estate broker at Douglas Elliman.
Why are rents getting colder?
The rent reduction follows a sharp rise in prices earlier in the decade.
One- and two-bedroom rental prices are rising at an annual rate of more than 12% in mid-2021 and mid-2022 amid high demand, according to Realtor.com data. Since early 2023, rent growth has turned negative as the supply of new apartments to the market increases.
More than 600,000 new in 2024 multi-family apartment units According to Apartment List – typically large, managed apartment buildings – the most completed in a single year nationwide since the 1980s.
The biggest rent cuts have been seen in these buildings, where an increase in supply has forced landlords to compete for tenants.
“We are seeing price wars in buildings, longer days on market, and the need for multiple price reductions just to generate foot traffic,” says Jaclyn Bild, real estate brokerage partner at Douglas Elliman.
He says prices for detached houses and high-end rental apartments are more stable, while demand remains relatively strong.
Where rents fall the most
Rent reductions have not been uniform, as conditions vary widely by market. The sharpest declines occurred in the Sun Belt and inner West metros, which have grown rapidly in recent years as the supply of new housing increased.especially Austin.
According to Realtor.com, using data from the 50 largest U.S. metro areas, these 10 cities recorded some of the sharpest year-over-year declines in average asking rent 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–Henderson–North Las Vegas, Nevada: −3.0%
- Houston–Pasadena–The Woodlands, Texas: −2.7%
- Miami – Fort Lauderdale – West Palm Beach, Florida: −2.7%
- San Antonio – New Braunfels, Texas: −2.7%
While rents remain well above pre-pandemic levels, momentum has shifted in many markets.
High vacancies and the continuing wave of new apartments coming to the market are expected to keep rent growth limited through early 2026, with prices stabilizing later in the year rather than rebounding quickly, according to Apartment List.
“This is a good time to negotiate rather than assuming the asking rent is fixed,” says Griffith. “Landlords are much more open to concessions, flexible lease terms or modest rent reductions than they were a year ago. Locking in a lease during periods of high supply, particularly in late winter or early spring, can provide cost certainty before demand picks up again.”
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