Cities where rent is finally dropping after years of increases

Rent prices start to ease

If your rent felt like it only went up for years, you were not alone. After steep increases earlier in the decade, prices are now cooling in many major metro areas.

In November, the median asking rent across the 50 largest metro areas was $1,693, down about 1% from a year earlier, according to Realtor.com. Nationally, median rent fell to $1,367, down 1.1% year over year, based on data from Apartment List.

Nearly two years of declines

The recent drop is part of a longer pattern. November marked the 28th straight month of year-over-year rent declines across the largest metro areas.

Even though November is usually slow for rentals, prices fell more from October to November this year than during the same period last year. That steady trend suggests the cooling could continue into early 2026.

2026 looks better for renters

With thousands of new apartments still opening, many experts expect rent growth to stay limited in 2026. Conditions now favor tenants more than landlords in several cities.

Michelle Griffith of Douglas Elliman says renters have more leverage than they did a year ago. That shift is giving people a chance to shop around instead of rushing to sign a lease.

What caused rents to spike

Not long ago, rents were climbing at a rapid pace across many cities. In mid-2021 and mid-2022, one- and two-bedroom units saw annual increases exceeding 12%, putting significant pressure on renters.

Strong demand combined with limited supply drove prices sharply higher, leaving many renters scrambling in bidding wars and facing quickly rising renewal notices. During that time, getting an apartment often meant acting fast and paying more than before.

A record wave of new supply

The main reason rents are cooling is simple: more housing. Since early 2023, rent growth has turned negative as a surge of new apartments entered the market.

In 2024, more than 600,000 new multifamily units were completed nationwide, the highest annual total since the 1980s, according to Apartment List. That added supply has increased competition among landlords.

Landlords compete for tenants

In many large apartment buildings, managers are adjusting prices to fill vacancies. Some offer rent cuts, while others add incentives to attract new tenants.

Jaclyn Bild of Douglas Elliman says buildings are seeing longer days on market and multiple price reductions. Instead of waiting lists, some properties now compete harder for each applicant.

Austin posts the sharpest drop

The largest decline was seen in Austin. The Austin–Round Rock–San Marcos area posted a significant 6.6% drop in median asking rent in November.

Rapid population growth had driven a surge in construction over the past few years. With many of those new units now completed, renters have more choices and stronger negotiating power, easing pressure on the local rental market.

Denver and Birmingham see relief

The Denver–Aurora–Centennial metro in Denver experienced a 4.8% drop in rents compared with a year earlier, signaling a noticeable slowdown in a market that had been climbing rapidly.

Birmingham followed closely with a 4.6% decline. In both cities, a combination of rising housing supply and steadier demand has helped ease rental pressures, giving renters some much-needed relief.

Sun Belt markets feel the shift

Several fast-growing Sun Belt metros are also experiencing meaningful drops in rents. Jacksonville posted a 4.2% decrease, while Phoenix saw a 4.0% fall, marking a notable shift in these once-heated markets.

These areas grew rapidly during the pandemic, attracting waves of new residents and prompting a construction boom. The added inventory is now helping to ease pressure on rental prices, giving renters more options and slightly more breathing room.

Little-known fact: More than 600,000 new multifamily apartments were completed nationwide in 2024, the highest annual total since the 1980s.

Coastal cities show smaller dips

Even some high-cost coastal areas are finally seeing relief. The San Diego–Chula Vista–Carlsbad area in San Diego posted a noticeable 3.5% drop in rents, giving renters a bit of breathing room.

Miami and Houston each saw rents fall 2.7%, signaling a clear shift in the market. While prices still remain above pre-pandemic levels, the downward trend offers hope for more affordable housing in these major cities.

Not every rental is dropping

The biggest cuts are mostly seen in large multifamily buildings, where rents are dropping faster. Detached homes and higher-end rentals have held steadier, as demand for these properties remains relatively strong.

This shows that the type of property really matters. Renters searching in big apartment complexes may find more negotiating room, while those looking for single-family homes could face less flexibility and higher prices.

A better moment to negotiate

Experts say this is a good time to ask questions and negotiate. Some landlords are offering flexible lease terms, small price cuts, or added perks to secure tenants.

Signing a lease during late winter or early spring, when supply is high and demand is softer, could help lock in a more favorable rate before activity picks up again.

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A pause after years of pressure

Rents are still higher than they were before the pandemic, but the recent declines mark an important shift. Instead of double-digit jumps, many cities are now seeing stability or small drops.

With more apartments expected to open in the coming months, rent growth may stay limited into early 2026. For millions of renters, that steady cooling offers a welcome break.

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Have you noticed lower rent prices in your area? Share what you are seeing locally.

This slideshow was made with AI assistance and human editing.

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