10 U.S. Cities Where Rent Is Finally Dropping

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."

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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:

1. Denver, Colorado: $1,785 (-7% year-over-year)
2. Austin, Texas: $1,436 (-6.5%)
3. Phoenix, Arizona: $1,471 (-6.2%)
4. Raleigh, North Carolina: $1,471 (-5.9%)
5. Nashville, Tennessee: $1,515 (-5.1%)
6. San Diego, California: $2,720 (-4.9%)
7. Jacksonville, Florida: $1,482 (-4.9%)
8. Riverside, California: $2,089 (-4.8%)
9. Las Vegas, Nevada: $1,443 (-4.6%)
10. Louisville, Kentucky: $1,242 (-4.2%)

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