Average rent prices are falling across key US cities

Average rent prices are falling across key US cities

With inflation driving up grocery bills, gas prices, and everyday expenses, it may surprise many Americans to see average rent prices moving in the opposite direction. Not that many renters would be too upset by the news. After years of steady increases, rents across several major U.S. cities are indeed falling. And while the shift may feel unexpected in today’s economy, the data clearly supports it.

Once high-demand rental markets such as Austin, Texas; Denver; Raleigh, North Carolina; and San Diego now sit at the center of this trend. Slowing demand, record levels of new apartment supply, and shifting migration patterns have started to cool rents, though other local market conditions also play a role.

As a result, landlords have to rethink pricing and vacancy strategy, while tenants suddenly find themselves with more leverage than they have had in years. In this article, TurboTenant explores how this shift is already reshaping pricing strategies, tenant behavior, and expectations across rental markets heading into 2026.

Why average rent prices are falling across the country

The COVID-19 pandemic-era housing boom undoubtedly plays a huge role in today’s rental market.

From 2020 through 2022, home prices surged nationwide while rents climbed at historic rates, often rising by double digits year over year in major U.S. metros. Ultralow interest rates, the proliferation of remote work, and swift migration to urban centers pushed demand beyond what the market could realistically sustain in the long term.

And now we’re starting to see the impact. In most easing markets, the explanation is simple: Supply has caught up to, and in some cases exceeded, demand. Apartment construction projects planned during the boom are now debuting in a very different market. Now, a greater supply, combined with higher interest rates, has resulted in fewer renters buying homes and more rental units to choose from.

Furthermore, recent housing data shows sellers now outnumber buyers by more than 500,000 nationwide, marking a sharp U-turn after more than a decade of seller-friendly markets. As inventory builds and buyer demand stagnates, home prices will continue to trend downward, easing rent growth in markets where supply is no longer scarce.

Taken together, these conditions are reshaping rental markets that once saw relentless growth, creating a unique environment in which price cuts and concessions are no longer rare in certain major cities.

Austin, Texas

Austin stands out as one of the sharpest rent price reversals in the country. Average rent prices have fallen a notable 6.6 percent year over year, placing Texas’s capital city among the steepest declines among large U.S. metros. In many areas, rent prices have backslid to near pre-pandemic levels.

During the pandemic, Austin’s reputation as the country’s next tech capital pulled in a swarm of remote workers almost overnight. That boom has since cooled off, and with it, demand has fallen back down to earth. Now, with a larger pool of vacancies to choose from, renters can negotiate more aggressively. At the same time, property owners must lean on rent concessions, price reductions, and flexible lease terms to stay competitive.

The decline also stems from a flood of new apartment construction in sought-after neighborhoods like Downtown, Rainey Street, East Austin, and North Burnet. After years of aggressive development, supply growth has steadily outpaced population gains, leaving small landlords and institutional investors alike facing higher vacancy rates and tougher competition for tenants.

Denver, Colorado

Denver emerged as one of the hottest rental markets over the last decade as residents poured in after cannabis legalization in 2014. Between 2014 and 2015 alone, average rent prices jumped from $1,041 to $1,203, a sharp 15.6 percent increase that the rental market felt seemingly overnight. In the years that followed, rents in Denver rose at an average pace of about 5 percent per year.

All of that momentum has now reversed. According to Zillow, the current average rent in Denver is $1,978, down about $111, or 5.4 percent, year over year. That decline ranks among the steepest of any large U.S. metro, marking a notable drop-off for what once was one of the country’s more sought-after rental markets.

What’s happening in Denver has a lot to do with shifting migration trends. According to U-Haul, Colorado’s in-migration and out-migration rates in 2025 were nearly even, with 50.1 percent moving in and 49.9 percent moving out. While these statistics may not be a big deal in many markets, in Denver’s case, where growth once felt guaranteed, that ratio now works against rising rents.

Raleigh, North Carolina

Raleigh’s rental market is cooling after years of rapid growth driven by tech jobs, universities, and steady in-migration. According to Axios, rents in the city’s older “Class C” apartments are down 7 percent year over year, while overall rents have fallen 3.4 percent. An influx of new apartment construction has also pushed prices lower, even as affordability remains a common concern for many renters.

While Raleigh consistently ranks among the top five U.S. cities for quality of life, rent prices don’t necessarily rise on reputation alone. Higher vacancy rates have eased pandemic-era competition, while demand has dipped after years of rapid growth. In response, landlords are investing more heavily in rental marketing and trimming rent prices to stay competitive.

Ultimately, Raleigh’s rent decline may level out as recently completed apartments in areas such as Downtown South, North Hills, and Cary fill up and construction activity slows. If the region’s tech, healthcare, and university-driven job growth holds, rents could stabilize and even begin to trend upward later in the year.

San Diego, California

The last market we’ll dive into is San Diego. Like the others, San Diego’s rental market is easing after years of relentless increases that pushed prices well above national norms. Median asking rents in the San Diego–Chula Vista–Carlsbad area are down about 3.5 percent year over year, following more than a decade of steady growth in the high-cost coastal market.

Rent prices in one of the country’s most expensive cities are easing in part because the region has hit an affordability ceiling. Rising vacancies in more affluent neighborhoods like Downtown and Mission Valley suggest that even higher earners are becoming more price-sensitive. At the same time, new apartment construction has increased competition among investors, while broader national rent softening has further weakened landlords’ pricing power.

Axios reports that median earners in San Diego are completely priced out of both homeownership and much of the rental market, limiting how much landlords can charge without stronger income growth or meaningful additions to affordable housing. Looking ahead to 2026, rents appear more likely to level off than rebound.

What decreasing rent prices mean for landlords

In metros like Austin, Denver, Raleigh, and San Diego (and many others across the country), falling rents are eating into landlords’ cash flow while taxes, insurance, and maintenance costs continue to climb to all-time highs. Higher vacancy rates are forcing landlords to offer concessions, renew tenants at lower rates, and accept longer-than-average periods of downtime.

While landlords in these areas may feel stuck, the patient ones will focus on retaining good tenants, staying flexible with pricing, using targeted concessions when needed, and leveraging digital property management tools to trim expenses and increase efficiency in bearish rental markets.

In these renter-friendly markets, landlords may need to temper their expectations until conditions improve. Those who understand local rental trends act accordingly and stay patient through the slowdown will find themselves better positioned for long-term success. And while these markets may not be the best investments now, they likely won’t stay down for long.

What decreasing rent prices mean for renters

Falling rent prices are a clear win for renters. After years of watching prices climb while wages stagnated, many renters find themselves with more leverage than they’ve had in a long time. That added bargaining power makes it easier to negotiate rent, request concessions, or upgrade to units that once felt financially out of reach.

Renters in these markets should treat the rare moment as an opportunity. For example, referencing competitive listings during a renewal negotiation can help renters drive rent prices down or secure concessions. And if landlords won’t budge, renters can freely shop comparable units to land better pricing. For those happy with their current rental situation, locking in 18- or 24-month lease terms could help them secure today’s more affordable rates.

But while renters may continue to benefit for now, this window won’t last forever. As rental demand slowly catches up with inventory, today’s sinking rents could eventually rebound to old heights. Locking down a good deal, negotiating longer lease terms, and acting while leverage still exists can help renters make the most of a market that hasn’t existed in years.

Will rent prices continue to fall across the U.S. in 2026?

There is no cut-and-dry answer, but current market conditions point toward continued softening in many parts of the country. Elevated supply, sinking demand, and the affordability crisis suggest rent prices could continue to trend downward through the rest of 2026, particularly in metros that experienced the sharpest growth over the past few years.

In the meantime, landlords in cooling markets should temper expectations and focus on retaining tenants, disciplined pricing, realistic forecasts, and improving their efficiency via digital property management tools. Renters, on the other hand, should take advantage of this fleeting opportunity to lock in favorable deals, negotiate better terms, and secure concessions.

No matter which side of the landlord-tenant relationship you’re on, you have options to improve your situation. For tenants, it could mean securing your dream rental. And for landlords, it’s an opportunity to improve your processes and focus on efficiency.

This story was produced by TurboTenant and reviewed and distributed by Stacker.