R
enters are finally feeling relief after years of steep hikes, a trend that is likely to continue into early 2026. In November, the median asking rent in the 50 largest U.S. metros fell to $1,693—about 1 % lower than a year earlier—marking the 28th straight month of year‑over‑year declines, according to Realtor.com. Nationally, the median rent dropped to $1,367, a 1.1 % decrease from last year, per Apartment List.

    November is usually the slowest rental month, yet the October‑to‑November decline this year was larger than the same period last year, Apartment List notes. With new apartment supply still flooding the market, analysts expect rents to stay subdued through 2026. “Barring a major economic shock, 2026 looks set to be one of the most renter‑friendly periods in a decade,” says Michelle Griffith, a luxury broker at Douglas Elliman.

    Why the cooling? Prices for one‑ and two‑bedroom units surged at over 12 % annually in mid‑2021 and mid‑2022 amid high demand. Since early 2023, rent growth has turned negative as a wave of new apartments entered the market. In 2024, more than 600,000 new multifamily units—largely large, managed buildings—were completed nationwide, the most in a single year since the 1980s, Apartment List reports. The biggest rent cuts have appeared in these buildings, where landlords compete for tenants. “We’re seeing price wars within buildings, longer days on market, and multiple price reductions just to generate foot traffic,” says Jaclyn Bild, a broker associate at Douglas Elliman. Detached homes and higher‑end rentals have remained steadier, with demand still relatively strong.

    Rent relief is uneven across markets. The sharpest declines have occurred in fast‑growing Sun Belt and interior Western metros with recent housing surges—especially Austin. The ten cities with the steepest year‑over‑year drops in median asking rent in November are:

    - Austin–Round Rock–San Marcos, Texas: –6.6 %

    - Denver–Aurora–Centennial, Colorado: –4.8 %

    - Birmingham, Alabama: –4.6 %

    - Jacksonville, Florida: –4.2 %

    - Phoenix–Mesa–Chandler, Arizona: –4.0 %

    - San Diego–Chula Vista–Carlsbad, California: –3.5 %

    - Las Vegas–Henderson–North Las Vegas, Nevada: –3.0 %

    - Houston–Pasadena–The Woodlands, Texas: –2.7 %

    - Miami–Fort Lauderdale–West Palm Beach, Florida: –2.7 %

    - San Antonio–New Braunfels, Texas: –2.7 %

    Although rents remain well above pre‑pandemic levels, the momentum has shifted. High vacancies and a steady stream of new apartments are expected to keep growth limited into early 2026, with prices leveling off later in the year rather than rebounding quickly, Apartment List predicts. “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.”