Apartment rents in the United States’ 50 largest metros fell for a 37th consecutive month in August, underscoring a sustained slowdown as the market heads into the fall.
National Rent Metrics
The median asking rent for studios through two‑bedroom units settled at $1,699, a 0.9% decline from August 2024 and a $16 drop year‑over‑year, according to Realtor.com’s September 17 report.
Compared with July, the median rose 0.24%, marking the first monthly increase since February, but the trend remains downward overall.
Realtor.com projects continued monthly declines into the fall and projects annual rent drops to persist through 2026 as multifamily construction adds supply.
Supply and Construction Outlook
A robust pipeline of multifamily projects keeps rental supply expanding, with the listing site forecasting more than 50.5 million units by Q1 2027—8.5% above pre‑pandemic levels.
Data from the Census Bureau showed multifamily housing starts fell 22.5% in August versus July and 15.5% year‑over‑year, while building permits slipped 3.1% month‑over‑month but rose 9.4% compared with August 2025.
Concessions Rise
Listings offering rent concessions rose to 43.5% of all units in August, up from 40.4% a year earlier, giving renters greater bargaining power.
Denver topped the list with a 71.9% concession rate for studios to two‑bedroom apartments, followed by Las Vegas, Nashville and San Antonio, each exceeding 65%.
Landlords in high‑vacancy markets prefer short‑term discounts over long‑term vacancy losses, Realtor.com noted.
In contrast, San Jose and San Francisco reported concession rates of 22.5% and 27.4%, respectively, due to an AI‑driven job boom sustaining strong demand.
Regional Rent Performance
Memphis, Tennessee, recorded the steepest annual decline at 4.1%, while Tampa, Florida, and San Antonio, Texas, fell 3.8% each.
Conversely, San Jose and San Francisco, California, posted rent gains of more than 4.5% in August.
“Renters are entering the fall with more choices and stronger negotiating leverage than at the market’s peak,” senior economist Jiayi Xu said.
Although rents remain above pre‑COVID‑19 levels, ongoing price corrections, new supply and rising concession offers are creating better deals for renters.
