U.S. Rental Market Trends: Declining Rent Prices Across the Country

Rent prices across the United States continue to decline, with the latest Realtor.com® Rental Report revealing an eighth consecutive month of decreases. Despite a slight year-over-year drop, the median rent remains robust at $1,722, suggesting a stable market compared to pre-pandemic levels.

Notable rent reductions were seen in regions such as Austin-Round Rock, Texas, and Memphis, Tenn., leading the top 10 markets with the largest declines. Meanwhile, the Midwest reported flat rental rates, but rising unemployment rates could pose a threat to stability in the region.

In the South, there was a -1.5% fall in median asking rents, with Austin and Memphis experiencing the steepest drops. The Western U.S. saw its first annual increase in rents, driven by hikes in San Diego and Los Angeles, as potential homebuyers opt to rent amid high home prices and elevated mortgage rates.

The Northeast, on the other hand, continues to see accelerated rent growth in cities like New York and Boston, fueled by strong labor markets and a shortage of rental housing supply.

Studios saw the most significant price drop among all unit types, but the median asking rent has surged over the past five years, indicating long-term growth. This report highlights the complex factors influencing the U.S. rental market and the underlying resilience in certain areas and unit types.