10 U.S. Cities Where Rent Is Finally Dropping
- Americans Are About to Drop Billions Betting on the 2026 World Cup
- From the World Cup to the NBA Finals, the Summer's Hottest Tickets Require a $1 Million Income
- Ticketmaster and Airbnb Are Now Required to Show You Fees Upfront. Are DoorDash and Instacart Next?
- I Earn $130,000 but Am Terrified of Layoffs. Should I Stop Funding My 401(k) to Pay off My Mortgage?
- After Years of Growth, the Number of 401(k) Millionaires Has Dropped
Rents are falling in most of the U.S., offering minor relief from high housing costs after a major run-up in prices from 2019 to 2022.
In five markets, the median asking rent is down more than 5% in the past year, according to a Realtor.com report Tuesday. At the top of the list: Denver (-7%). The Mountain West metropolis is followed by several Sun Belt cities, including Austin (-6.5%) and Phoenix (-6.2%).
The downward trend across the U.S. is creating opportunities for renters to move to find better deals. "High rental prices have been a major factor keeping many renters in place, leading to lower mobility," the report said. "With asking rents declining over the past two years, renters now have greater incentives to relocate rather than stay put."
Build equity with your own home instead of paying rent to a landlord
Unlock your interest rate now
Your Information
Not sure which loan type to choose? Go with a 30 Year Fixed Rate Loan, 90%+ of Americans do.
You can enter the mortgage loan amount, or the total home price if you have a downpayment.
Your Estimated Rate
Estimated interest rate*
Money’s Methodology
*Based on the U.S. average rate for consumers with an Exceptional Fico score (780+) getting a conventional loan, no points, and a 20% down payment. Actual rates may vary. Click "View Rates" to contact Rocket Mortgage (NMLS #3030) for a more accurate quote.
Rent prices are falling, but remain elevated
After peaking above $1,750 in August 2022, the median rent has since dropped by $46, or 2.6%, to $1,713 for 0-2 bedroom units. Rent prices are finally cooling amid a "surge in new supply," the report said.
Still, it's a small decline in comparison to the spike that preceded it. Prices boomed during the pandemic due to a shortage of rental properties and increases in home prices. Compared to 2019, the median rent is up 17% (or $249 per month).
Some cities have experienced steep rent declines since August 2022. "In particular, rents in Las Vegas, Nevada (-13.6%), Atlanta, Georgia (-13.6%), and Austin, Texas (-13.4%), are seeing the largest declines from their peaks, highlighting prime opportunities in these markets," the report said.
10 cities where rents are dropping fast
August was the first month since March that rents dropped, likely "signaling the start of the rental market’s seasonal slowdown," according to the report, which documented rent trends in the 50 largest metro statistical areas.
Here are the top 10 cities where median rents prices are dropping:
- Denver, Colorado: $1,785 (-7% year-over-year)
- Austin, Texas: $1,436 (-6.5%)
- Phoenix, Arizona: $1,471 (-6.2%)
- Raleigh, North Carolina: $1,471 (-5.9%)
- Nashville, Tennessee: $1,515 (-5.1%)
- San Diego, California: $2,720 (-4.9%)
- Jacksonville, Florida: $1,482 (-4.9%)
- Riverside, California: $2,089 (-4.8%)
- Las Vegas, Nevada: $1,443 (-4.6%)
- Louisville, Kentucky: $1,242 (-4.2%)
Buy your home with more convenience and less hassle
More from Money:
8 Best Mortgage Lenders of 2025
Home Prices Are Back on the Rise — Even in 'Affordable' Cities
Top 10 U.S. Cities Where Home Sellers Are Offering Perks to Sweeten the Deal