If you’ve been watching your monthly rent payment climb higher and higher since the pandemic, you’re not alone—and there’s finally some encouraging news on the horizon.
Get a Free Virtual Rental Evaluation Plus a Custom Cost Quote
Rent Prices Continue Their Downward Trend
For the 25th consecutive month, U.S. rent prices have declined year over year. According to recent data from Realtor.com, the median asking rent for smaller properties (zero to two bedrooms) across the 50 largest metro areas hit $1,713 in August—that’s $38 less than the previous year, representing a 2.2% decrease.
To put this in perspective, rents are now 2.6% below their peak in August 2022, when housing costs skyrocketed as pandemic-driven demand sent shockwaves through the market.
The Pandemic Housing Boom: A Quick Recap
Remember the great migration of 2020-2021? As remote work became the norm, millions of Americans packed up and left major cities for smaller towns, suburbs, and Sun Belt destinations. This massive shift in where people wanted to live created unprecedented demand for rental properties, causing prices to surge dramatically.
Where Renters Are Seeing the Biggest Relief
Some cities that experienced the most dramatic rent spikes during the pandemic are now seeing the steepest corrections. Here are the top three markets with the largest declines from their peak prices:
Las Vegas, Nevada: Down 13.6%
Atlanta, Georgia: Down 13.6%
Austin, Texas: Down 13.4%
Why Are These Markets Cooling Off?
According to Jiayi Xu, an economist at Realtor.com, the answer lies in two key factors. First, the migration wave that flooded these Sun Belt cities has significantly slowed down. Second, developers rushed to build new multifamily housing to meet the earlier demand surge—and all that new inventory is now hitting the market.
“Migration trends have slowed, and significant new multifamily supply has increased options for renters, exerting downward pressure on prices,” Xu explains. This combination has given renters more choices and more negotiating power than they’ve had in years.
The National Picture: Declines Across All Property Types
The good news extends beyond just smaller units. Every rental category saw year-over-year price drops in August:
Cities with the Steepest Year-Over-Year Declines
If you’re considering a move or just curious about market trends, here are the metros experiencing the most significant rent reductions:
Swimming Against the Tide: Where Rents Are Still Rising
Only four major metros bucked the trend with year-over-year rent increases:
The Reality Check: Still Higher Than Pre-Pandemic Levels
Before you start celebrating too much, here’s the sobering truth: while rents are coming down from their peaks, they’re still significantly higher than they were before COVID-19 hit.
San Francisco stands out as the only major metro where rents have actually fallen below 2019 levels—down 3.2% to a median of $2,831 across all property sizes.
Meanwhile, some cities have seen staggering six-year increases:
Nationally, the median rent of $1,713 is still $249—or 17%—higher than it was in August 2019.
Property Management Frequently Asked Questions (FAQ)
What This Means for You
The continued decline in rent prices is encouraging, especially for renters in overheated markets like Austin, Atlanta, and Las Vegas. If you’re in one of these areas, you may have more leverage to negotiate with landlords or find better deals than you would have a year or two ago.
However, if you’re hoping for a return to pre-pandemic pricing, you’ll likely be waiting a while longer. The market is correcting, but the floor remains considerably higher than it was just five years ago.
For those considering a move, cities with declining rents and robust new construction may offer the best opportunities for finding affordable housing in the current market.
To read more, visit Map Shows Where Rents Are Dropping Across Major US Cities – Newsweek.
