US Rents Drop to $1,699 as Concessions Hit Record High
National median asking rent fell 0.9% year over year. Forty-three percent of listings now offer incentives.
The national median asking rent for US apartments fell to $1,699 in August. This marks the 37th consecutive month of year-over-year declines. Rents are now 3.7% below their summer 2022 peak. The price point remains 15.4% higher than August 2019 levels.
Landlords are offering incentives to fill units. In the 50 largest metropolitan areas, 43.5% of rental listings included concessions. This is the highest rate recorded in the history of the Realtor.com Rental Report. Concession rates rose in 39 of the 50 tracked markets compared to the previous year.
Incentive Rates Reach Historic Peaks
Denver shows the highest concession rate at 71.9%. Austin follows at 70.7%, with Las Vegas at 69.6%. Nashville and San Antonio round out the top five markets. Avail data links these incentives directly to high vacancy rates and weak renter demand.
San Jose and San Francisco represent the exception. Rents in these cities rose by 4.5% and 4.7% respectively. Incentive activity declined in these tech-heavy hubs. The trend contrasts sharply with the broader national slowdown in pricing.
Supply Outpaces Demand in Key Hubs
Multifamily construction remains above pre-pandemic levels. This sustained supply pipeline supports the downward trend in prices. Realtor.com projects a 1.2% full-year rent decline for 2026. This forecast assumes supply continues to outpace demand through the fourth quarter.
Two-bedroom units remain 17.7% above August 2019 prices. One-bedroom units are 14.4% higher than the pre-pandemic baseline. Studios are 13.1% above their 2019 levels. The gap between current prices and historical norms persists despite recent drops.
Renter Leverage Increases Entering Fall
Jiayi Xu, senior economist at Realtor.com, notes that renters hold more negotiating power. The combination of declining rents and new supply creates better deals. Seasonal slowdowns are expected to continue through the fall. Year-over-year declines are likely to persist as inventory clears.
First-time homebuyers may find improved affordability in 2026. Income growth is outpacing home price appreciation in more markets. Softening rents could extend the timeline for some clients. The rental market shift provides additional options for prospective buyers.
