Good news continues for renters as we head into 2026. After years of challenging rent increases, the market has shifted decisively in favor of tenants, and this trend shows no signs of stopping anytime soon.
The numbers tell a compelling story. Across the 50 largest metro areas in the U.S., median asking rents hit $1,693 in November, representing a 1% decline from the previous year. This marks the 28th straight month of year-over-year decreases, according to Realtor.com. Nationally, Apartment List reports the median rent at $1,367, down 1.1% annually.
What makes this particularly noteworthy is that November typically sees the slowest rental activity of the year, yet prices dropped more sharply between October and November this year compared to the same period last year. With new apartment construction continuing to flood the market, experts anticipate this renter-friendly environment will persist well into 2026.
Michelle Griffith, a luxury real estate broker at Douglas Elliman, puts it bluntly: “Barring a major economic shock, 2026 is shaping up to be one of the more renter-friendly periods we’ve seen in a decade.”
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Understanding the Shift
This relief follows a dramatic surge earlier in the decade. During mid-2021 and mid-2022, one- and two-bedroom rentals saw annual price increases exceeding 12% as demand soared. But the market began correcting in early 2023 when new apartment supply started catching up with demand.
The scale of new construction in 2024 was historic. More than 600,000 multifamily apartment units came online nationwide, the highest annual total since the 1980s. These new buildings, particularly large managed apartment complexes, have become the epicenter of price competition.
“We’re seeing price wars within buildings, longer days on market, and the need for multiple price reductions just to generate foot traffic,” explains Jaclyn Bild, a real estate broker associate at Douglas Elliman. Meanwhile, detached homes and higher-end rentals have remained more stable, with demand holding relatively strong.
Regional Variations Matter
Not every market is experiencing the same level of relief. The steepest declines have concentrated in fast-growing Sun Belt and interior Western metros where new housing supply has surged. Austin leads the pack with a 6.6% year-over-year drop in median asking rent, followed by Denver at 4.8%, Birmingham at 4.6%, and Jacksonville at 4.2%. Other notable markets seeing significant decreases include Phoenix, San Diego, Las Vegas, Houston, Miami, and San Antonio.
Important Steps to Rent Your Home Out from A to Z
Step by step checklist for getting a home rented, and link to the full property management guide
1 Consider strengths and weaknesses for your home and location and consider special strategies to utilize them. Is it a college area? If so, you’ll likely handle a lot differently from low income, or a suburb.
2 Get the property in show-ready condition by handling repairs, but also low-cost aesthetic fixes like spray painting rusted AC grates, and other things that really stand out. A sure way to attract sub-par tenants and repel the rest is to show a home with unrepaired issues.
3 Decide whether you’re going to allow pets or not. Before you decide, know that for most landlords it’s the single best thing you can do to increase your “bottom line” profit over the long term. More on this subject here
4 Set a rental rate that will balance a minor amount of time on market hassle, with monthly rate. Whether in the form of owner-occupied showings, stress, or vacancy. Most owners fail to properly account for these subtle but real costs, especially vacancy. Vacant homes are much more costly than most account for. We can provide a free rental rate estimate compiled by people, not an algorithm, here
Looking Ahead
While rents remain higher than pre-pandemic levels, the trajectory has clearly changed. High vacancy rates and continued construction completions are expected to keep rent growth minimal through early 2026, with prices stabilizing later in the year rather than rebounding quickly.
For renters, this creates opportunities. “This is a good time to negotiate rather than assume the asking rent is fixed,” Griffith advises. “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.”
For housing services professionals, understanding these market dynamics is essential for serving both tenants and property owners effectively in the year ahead.
