National Median Asking Rent Falls for the 38th Consecutive Month to $1,694 Yet September Saw the Slowest Pace of Decline in Three Years

AUSTIN, Texas, Oct. 15, 2026 /PRNewswire/ -- September saw the slowest pace of decline in three years as today's rental market is being shaped by three powerful forces, the cooling of the supply wave in the Sun Belt, renters moving to more affordable alternatives, and AI-driven job growth in the Bay Area. According to the Realtor.com^® September 2026 Rent Report, the median asking rent for studio, one- and two-bedroom properties across the 50 largest U.S. metropolitan areas fell 0.4% year over year to $1,694.

This marks the 38th consecutive month of annual declines. The typical asking rent is now $80, or 4.5%, below its August 2022 peak, a meaningful improvement for renters after the rapid run-up in housing costs earlier in the decade. At the same time, rents remain $214, or 14.5%, above their pre-pandemic level, underscoring that the national market has become less expensive than at its peak—not inexpensive.

Nearly 43.9% of studio, one- and two-bedroom rental listings across the 50 largest metros offered a concession in September, up 1.3 percentage points from a year earlier.

"Renters are getting a break, but rents are still significantly more expensive than before the pandemic," said Jiayi Xu, senior economist at Realtor.com^®. "While asking rents are below their 2022 peak and concessions are still easy to find, for many households, relief is not the same as affordability. As the market enters its typical fall slowdown, we forecast that monthly rents will soften, but the additional relief might be more limited."

Markets with the largest shift in rent momentum over the past year point to three forces reshaping rental demand and supply: the cooling of the post-pandemic supply wave in Sun Belt metros, migration toward more affordable alternatives to high-cost cities, and AI-related job growth in the Bay Area.

AI-driven Demand Accelerates Bay Area Rents
The strongest rent growth is in the Bay Area. Median asking rent in San Jose rose 6.0% year over year to a new high of $3,565, while San Francisco rent increased 4.8% to $3,057, just $48 below its summer 2022 pandemic peak. The region's AI boom is drawing young professionals seeking employment opportunities, amplifying rental demand. At the same time, concession availability dropped sharply: the share of listings offering concessions fell from 51.9% to 24.3% in San Jose and from 47.6% to 28.1% in San Francisco over the past year. Rising rents and fewer incentives together signal a materially tighter rental environment for Bay Area renters.

"Rising rents and vanishing concessions are a one-two punch for Bay Area renters," said Jiayi Xu, senior economist at Realtor.com^®. "The share of San Jose listings offering concessions has fallen by more than half in a year, from 51.9% to 24.3%, while rents have climbed to record levels. The AI boom is fueling demand, and landlords are responding by tightening terms."

Affordability-Seeking Renters are Lifting Demand in Lower-Cost Alternatives
St. Louis, Minneapolis, Virginia Beach, Riverside and Las Vegas have shifted from rent price declines to price gains as renters seek more affordable options outside nearby high-cost markets. In St. Louis, 45.4% of out-of-market rental demand in the third quarter of 2026 originated in Chicago, where median asking rent reached a new high of $1,909 in September, up 2.3% from a year earlier. Minneapolis showed a similar pull from Chicago, which accounted for 27.3% of its out-of-market rental traffic.

That demand has helped reverse rent trajectories: St. Louis moved from a 4.4% annual decline to a 2.0% increase; Minneapolis from a 3.4% decline to a 1.7% gain; Virginia Beach from a 4.4% decline to a 1.7% gain; Las Vegas from a 3.2% decline to a 0.9% gain; and Riverside from a 4.0% decline to a 0.2% gain.

Supply-Driven Declines are Easing in the Sun Belt
Austin, Oklahoma City and Phoenix benefited from a wave of post-pandemic multifamily construction that pushed rents lower. As that construction wave cools, however, the rate of decline is easing. Austin's annual rent decline narrowed from 7.8% in September 2025 to 2.3% in September 2026; Oklahoma City's narrowed from 6.5% to 1.4%; and Phoenix's narrowed from 5.8% to 1.9%. Renters in these markets are still seeing year-over-year savings, but the changing pace suggests that the most intense supply-driven downward pressure is beginning to recede.

Markets Where Rent Trends Shifted Most

Rental Market Snapshot: 50 Largest Metros, September 2026

Methodology

Rental data as of September 2026 for studio, 1-bedroom, or 2-bedroom units advertised for rent on Realtor.com^®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com^® began publishing regular monthly rental trends reports in October 2020, with data history extending to March 2019. Concession rates are calculated based on all studio, one-bedroom and two-bedroom rental listings on Realtor.com^®.

About Realtor.com^®
For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, [email protected]

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SOURCE Realtor.com