As renters across the United States continue to strain under high housing costs since 2019, there is finally some welcome relief: rents are dropping in many U.S. cities.
A recent report from Realtor.com, published in mid-September 2025, shows that in August the median asking rent declined year-over-year for the 25th consecutive month.
Why Rent Is Dropping
Nationally, the median asking rent in the 50 largest U.S. metro areas has slipped about 2.2% compared to this time last year.
While prices remain significantly above pre-pandemic levels about 17% higher than in 2019, they are down from their peak in 2022.
The decline spans all apartment types: studios, one-bedroom, and two-bedroom units all saw decreases.
Several forces are contributing to this drop:
- Increased housing supply – new listings, more apartments, especially multifamily, are helping ease competition.
- Affordability pressures – many renters are seeking cheaper rent or more space, pushing them to move, which increases mobility.
- Slowing housing market momentum – inventory is higher, homes are staying on the market longer, and sellers are making more price cuts. All these trends reduce upward pressure on rent.
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5 U.S. Cities Where Rent Is Dropping Most Sharply
According to Realtor.com’s data, these five U.S. cities are seeing the largest year-over-year declines in median asking rent – more than 5% drops.
| City | Current Median Asking Rent* | Year-over-Year Change |
|---|---|---|
| Denver, Colorado | ~$1,785/month | ~ –7.0% |
| Austin, Texas | ~$1,436/month | ~ –6.5% |
| Phoenix, Arizona | ~$1,471/month | ~ –6.2% |
| Raleigh, North Carolina | ~$1,471/month | ~ –5.9% |
| Nashville, Tennessee | ~$1,515/month | ~ –5.1% |
Note: Median asking rent refers to what landlords are listing, not necessarily what all renters are paying.
What This Means for Renters & Cities
This drop in rent is good news for renters in those U.S. cities, especially people who have been squeezed by escalating housing costs.
For many, this could mean better negotiating power, more options, or relief in household budgets. Cities seeing bigger declines are likely benefitting from a mix of new housing stock and shifts in demand.
However, even in cities where rent is dropping, rent is still far higher than before the pandemic.
A 17% national increase since 2019 means that for many households, past gains in affordability have been washed out.
Looking Ahead
Will rents keep falling? That’s not sure yet. Analysts warn that the decline may slow or halt depending on several factors:
- If construction costs rise, the supply of new apartments could slow.
- Some cities already have tight housing markets; further drops may be limited.
- Seasonal patterns could also cause temporary reversals.
For now, though, renters in these cities are catching a break. In the broader United States, the trend toward dropping rent gives hope that housing will become a little more affordable not immediately easy, but better than if prices had kept rising unchecked.
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