Rents Are Falling in Many Major U.S. Cities As We Head Into 2026

After several years of rising rents, people looking to rent apartments are finally seeing lower prices in many large cities across the United States.

Experts say this trend will likely continue into early 2026, making it one of the most renter-friendly times in the past ten years.
 

How Much Have Rents Dropped?

Recent data shows that rents have been dropping for over two years in a row. For example, the average asking rent in the 50 biggest metro areas was $1,693 in November, down about 1% from the year before.

Nationwide, the average rent was $1,367, a 1.1% drop compared to last year.

Usually, fewer people move in November, and rents often fall a bit during this time. However, this year, the drop from October to November was even bigger than last year.
 

Why Are Rents Going Down?

One main reason for falling rents is that many new apartment buildings have been finished recently. In 2024 alone, over 600,000 new apartments were built, the most in one year since the 1980s.

With more apartments available, landlords are competing for renters, offering better prices and deals.

Experts say that some buildings now have "price wars" with landlords lowering rents or offering discounts to attract people. However, prices for single-family homes and high-end rentals have stayed steadier because there is still strong demand for these types of properties.
 

Where Are Rents Falling the Most?

Rents aren't dropping the same amount in every city. The biggest drops have been in fast-growing places in the South and Western parts of the U.S., such as Austin, Texas, and some cities in Florida, Arizona, and Colorado.

Here are some cities where rents have dropped the most from last year:
 

• Austin, TX: Down 6.6%
• Denver, CO: Down 4.8%
• Birmingham, AL: Down 4.6%
• Jacksonville, FL: Down 4.2%
• Phoenix, AZ: Down 4.0%
• San Diego, CA: Down 3.5%
• Las Vegas, NV: Down 3.0%
• Houston, TX: Down 2.7%
• Miami, FL: Down 2.7%
• San Antonio, TX: Down 2.7%

 

What to Expect Going Forward

Even though rents are still higher than they were before the pandemic, the current trend is good news for renters. With lots of new apartments still being built, rent prices are expected to stay low at least through early 2026.

Prices could become more stable later in the year.

If you’re looking to rent, experts recommend negotiating with landlords for better lease terms or lower prices. Landlords are more willing to make deals now, especially during the winter and early spring when there are more empty apartments.

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