Ten American Cities Where Rental Prices are Actually Decreasing

Rent Prices Continue to Fall, But Remain Higher Than Pre-Pandemic Levels

Here’s some good news for renters: Rent prices are still moving in the right direction—and have fallen for the 15th consecutive month.

The median asking rent in the 50 largest metros registered at $1,720, down $23 from last month and $40 from its August 2022 peak, notes Realtor.com economist Jiayi Xu in the October 2024 Rental Report.

Why Rents Initially Went Up

Chalk the general rise in rents over the past few years up to inflation. Over the past five years, the real estate inflationary rate has grown by 18.8%. While that’s slightly lower than the overall consumer price inflation rate of 22.7%, it’s still enough to keep rents elevated.

More Housing Stock is Cooling the Market

The rental market is finally reaping the benefits of construction projects that began during the pandemic. Between January and September 2024, the average annualized rate of multifamily home completions reached 606,000 units, a 36.1% increase over the same period in 2023.

The Sun Belt Adds the Most Rentals

Sun Belt cities like Miami have seen their rents drop. During the pandemic, remote workers flocked to Sun Belt cities, driving up demand and rental prices. Between February 2021 and February 2022, these metros saw average rent increases of 22.5%. Developers quickly responded, and between January and September 2023 alone, more than 823,000 homes were completed in the region.

The Top 10 Metros Where Rents Have Fallen the Most

1. Denver: YoY change (0-2 bedrooms): -5.6%, Median rent (0-2 bedrooms): $1,836
2. Austin, TX: YoY change (0-2 bedrooms): -5.4%, Median rent (0-2 bedrooms): $1,204
3. San Antonio, TX: YoY change (0-2 bedrooms): -5.2%, Median rent (0-2 bedrooms): $1,556
4. Nashville, TN: YoY change (0-2 bedrooms): -4.3%, Median rent (0-2 bedrooms): $1,462
5. Dallas, TX: YoY change (0-2 bedrooms): -4.2%, Median rent (0-2 bedrooms): $1,495
6. Memphis, TN: YoY change (0-2 bedrooms): -4.1%, Median rent (0-2 bedrooms): $1,780
7. Oklahoma City, OK: YoY change (0-2 bedrooms): -4.1%, Median rent (0-2 bedrooms): $1,250
8. Kansas City, MO: YoY change (0-2 bedrooms): -4.5%, Median rent (0-2 bedrooms): $1,512
9. Columbus, OH: YoY change (0-2 bedrooms): -3.8%, Median rent (0-2 bedrooms): $1,520
10. Indianapolis, IN: YoY change (0-2 bedrooms): -3.4%, Median rent (0-2 bedrooms): $1,583

Conclusion

While rents remain higher than pre-pandemic levels, the added supply is beginning to ease pressure on renters, making these cities more accessible in general. As the rental market continues to evolve, renters can expect to see more affordable options become available.

FAQs

Q: Why have rent prices been rising?
A: Rent prices have been rising due to inflation and the increased demand for housing during the pandemic.

Q: What is driving the decline in rent prices?
A: The decline in rent prices is being driven by an increase in housing supply, particularly in the Sun Belt region.

Q: Which cities have seen the largest decline in rent prices?
A: The cities that have seen the largest decline in rent prices include Denver, Austin, San Antonio, Nashville, and Dallas.

Q: What does this mean for renters?
A: This means that renters can expect to see more affordable options become available, making it easier to find a place to call home.