The rental market story unfolding across America has a distinctly Southern and Western flavor. As we see the 25th consecutive month of year-over-year rent declines for smaller units, it’s the Sun Belt cities that are making the biggest headlines—and offering the best opportunities for renters.
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The Sunbelt Dominance in Rent Reductions
Three metros are leading the charge in rental affordability: Las Vegas (-13.6%), Atlanta (-13.6%), and Austin (-13.4%)—all seeing dramatic price cuts from their pandemic peaks. But this isn’t just coincidence. These warm-weather destinations share a common story that likely extends to other Sunbelt markets like Raleigh and Charlotte.
“Las Vegas, Austin, and Atlanta saw the largest rent declines from their peaks due to rapid rent growth during the [COVID-19] pandemic, when many people moved to warm Sun Belt areas, creating a high starting point for corrections,” explains Jiayi Xu, an economist at Realtor.com.
The Numbers Tell the Story
The rent corrections in these Sunbelt markets are substantial:
While Raleigh and Charlotte aren’t specifically highlighted in the national data, these North Carolina metros likely experienced very similar pandemic-era rent spikes and are probably seeing comparable corrections just below the top three cities on the decline list.
Why Sunbelt Cities Are Leading This Trend
The pattern across these warm-weather markets is clear: rapid pandemic migration created artificial rent inflation, and now the market is self-correcting. As Xu notes, “Migration trends have slowed, and significant new multifamily supply has increased options for renters, exerting downward pressure on prices.”
This dynamic is particularly pronounced in Sunbelt cities because they were the primary destinations for pandemic-era relocations. People fled expensive coastal cities for affordability, space, and lifestyle—driving up demand and rents in places like Atlanta, Austin, Las Vegas, and likely Raleigh and Charlotte as well.
The Opportunity for Renters
Robert Little, a real estate associate in Henderson, Nevada, puts it in perspective: “People are still moving here [Las Vegas] for opportunity, affordability, and lifestyle.” The same could easily be said for the North Carolina markets.
The sustained rent declines are creating real opportunities:
What Renters Want Now
The shifting market is changing renter priorities. According to Realtor.com’s survey, the top motivations for moving are:
Affordability has become king, with renters willing to sacrifice amenities like on-site services and shorter commutes for lower monthly payments—a trend that likely benefits mid-tier Sunbelt markets like Raleigh and Charlotte even more than the major metros.
The Broader Market Context
While the national median asking rent sits at $1,713—still $46 below its August 2022 peak—the Sunbelt corrections are leading the way toward more sustainable pricing. Two-bedroom units nationally are down 2.2% year-over-year to $1,897, while one-bedrooms average $1,593.
Compare that to expensive coastal markets like Boston ($2,979), New York metro ($2,946), or Los Angeles ($2,818), and it’s clear why the Sunbelt cities—including markets like Raleigh and Charlotte—represent compelling value propositions.
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
Despite current rental opportunities, nearly 60% of surveyed renters still plan to buy homes, with 52% expecting to do so within two years. This suggests that while renters are taking advantage of current market conditions, they view Sunbelt markets as places to establish long-term roots.
The rent corrections we’re seeing in Las Vegas, Atlanta, and Austin—and likely in similar markets like Raleigh and Charlotte—represent a return to more sustainable pricing after the pandemic-era disruptions. For renters, it’s creating opportunities that haven’t existed in these growing Sunbelt markets for years.
To read more information, visit Rents Are Dropping Across the U.S.—These 3 Metros Have Had the Biggest Price Cuts.
